Feed cost per cwt

Definition

Feed cost per cwt is the cost of the feed fed to lactating cows divided by the hundredweight (100 lb) of milk those cows produced over the same period. It answers “how many dollars of feed go into each cwt of milk”, and it is the cost side of income over feed cost on a per-cwt basis.

State the definitions before comparing numbers:

Which cows. Lactating only (most common). A whole-herd version adds dry cow feed (and sometimes heifer feed) to the numerator while the milk stays the same, so it is always higher.
Which milk. Shipped milk (plant receipts, what is sold) or ECM (energy-corrected, for comparing herds with different components). Shipped milk is the default for economic reporting; ECM is better for comparing ration efficiency.
Which feed cost. As-fed cost including shrink, or formulated ration cost. Homegrown forages at market value or at cost of production. Purchased feed at delivered price (see feed price quotes).

Feed cost per cwt is only meaningful over a complete period: a full month or a full set of days for which both feed and milk are recorded. Partial periods divide a full month of feed by a partial month of milk, or the reverse.

Formula

Plain text:

Feed cost per cwt ($/cwt) = lactating feed cost ($) / (milk (lb) / 100)
                          = feed cost ($/cow/day) / milk (lb/cow/day) × 100
IOFC ($/cwt)              = milk price ($/cwt) − feed cost per cwt ($/cwt)

LaTeX:

C_{\text{cwt}} = \frac{C_{\text{feed}}}{M / 100} = \frac{100 \cdot c_{\text{cow}}}{m_{\text{cow}}}
\qquad
\mathrm{IOFC}_{\text{cwt}} = P_{\text{milk}} - C_{\text{cwt}}

where C_feed = total lactating feed cost for the period ($), M = total milk for the period (lb), c_cow = feed cost per cow per day and m_cow = milk per cow per day.

Both the feed and the milk must cover the same cows and the same days.

How to pull it in DC305

Feed costs are not in DC305. They come from feeding software (ingredient pounds by pen times ingredient prices), the nutritionist’s ration cost, or feed invoices and inventory. Shipped milk comes from plant receipts or the milk check.

DC305 supplies cow counts and the split of milk between pens, for pen-level cost per cwt:

COUNT BY PEN FOR LACT>0          cows per pen
SUM BY PEN FOR LACT>0            head count by pen (SUM with no items counts animals)
SUM MILK BY PEN FOR LACT>0       test-day milk by pen

For the herd number, use total shipped milk from plant receipts, not DC305 test-day milk × cows. Test-day milk is one day per month and includes milk that isn’t sold.

Typical range

Herd context: US Holsteins, freestall or dry-lot, lactating cows only, shipped milk, as-fed ration cost including shrink.

Feed cost per cwt moves with feed prices more than with management, so always give it with the period.

Basis	Low-cost	Typical	High-cost
Lactating feed, $/cwt shipped	< $8	$8–$12	> $13
Whole herd (incl. dry cows), $/cwt shipped	< $9	$9–$13.50	> $14

Dry cows typically add about $0.75–$1.50/cwt to the lactating number when their feed is included.

USDA’s DMC feed cost is a national formula ration cost, not a farm cost. It is useful for market context only. See dairy margin coverage.

Common mistakes

Not stating the milk basis. Shipped milk and ECM give different numbers; per cwt ECM is usually lower for high-component herds.
Partial periods. A month with missing feed days or a mid-month milk check gives a meaningless ratio. Use complete periods only, and drop or flag months with gaps.
Test-day milk instead of shipped milk. Overstates milk sold, so cost per cwt looks lower than it is.
Formulated cost instead of fed cost. Leaves out shrink and mixing error. See shrink.
Lactating feed over whole-herd milk, or the reverse. The numerator and denominator must cover the same cows.
Reading it alone. Lower feed cost per cwt is good only if milk holds. Use IOFC for feeding decisions and feed efficiency for diagnosis.