September 2011 Newsletter

This months linked article's:

DOES IT STILL PAY TO FEED CONCENTRATES?

In this current market of high feed costs and a relatively low milk price the question is often asked whether it still pays to feed concentrates and if so how much? The answer to this question must be very complex because everyone has a different amount and quality of forage available and there are so many ways of producing those extra litres profitably.

Forage accounts for approximately 50% of the total dry matter of any diet which means the amount of milk you produce per day relies on the quality of the forage given. Any additions in the form of blends, parlour nuts etc are additions to your own forage costs - but is it still profitable to feed these concentrates? The following 3 tables show the cost of producing milk at various yields per day, excluding forage costs and all your own individual other expenses. The following tables show comparisons between various milk yields and various concentrate prices with, in the main, a minimum margin per litre over the concentrate cost of around 20p per litre rising to over 26 pence.

Hopefully these tables will give an indication to each of you of the costs so that you can put your own 'other costs' against them to work out your own margin per litre. Even with concentrate costs rising it still pays to feed for yield and the higher milk prices rise the better the margin will be. To help achieve maximum yields and profit you must make the most of your own produced forages as they account for 50% of the dry matter intake of the cow as we have already said, so it will pay to make the best silages you can.

Together, good quality forage balanced with a quality concentrate will give the best results. To help you achieve the ultimate we will be only too pleased to assist in rationing your cows for the coming winter. Please call us for a no obligation discussion on 01948 661602.

Table a. Economics with milk price of 27p per litre and concentrate @ £210/t

Litres per day 15 20 25 30 35 40
Concentrate
(kgs/head/day)
1.5 2.5 5.0 7.5 10 12.5
Cost of concentrates
(£ per day)
£0.315 £0.525 £1.05 £2.03 £2.70 £3.38
Milk Income
(£ per day)
£4.05 £5.40 £6.75 £8.40 £9.80 £11.20
Margin over concentrates
(£ per day)
£3.735 £4.875 £5.70 £6.37 £7.10 £7.82
Margin over concentrates
(per litre)
24.9p 24.4p 22.8p 21.2p 20.3p 19.6p

Table b. Economics with milk price of 27p per litre and concentrate @ £230/t

Litres per day 15 20 25 30 35 40
Concentrate
(kgs/head/day)
1.5 2.5 5.0 7.5 10 12.5
Cost of concentrates
(£ per day)
£0.345 £0.575 £1.15 £1.725 £2.30 £2.875
Milk Income
(£ per day)
£4.05 £5.40 £6.75 £8.10 £9.45 £10.80
Margin over concentrates
(£ per day)
£3.705 £4.825 £5.60 £6.375 £7.15 £7.925
Margin over concentrates
(per litre)
24.5p 24.1p 22.4p 21.3p 20.4p 19.8p

Table c. Economics with milk price of 29p per litre and concentrate @ £250/t

Litres per day 15 20 25 30 35 40
Concentrate
(kgs/head/day)
1.5 2.5 5.0 7.5 10 12.5
Cost of concentrates
(£ per day)
£0.375 £0.625 £1.25 £1.875 £2.50 £3.125
Milk Income
(£ per day)
£4.35 £5.80 £7.25 £8.70 £10.15 £11.60
Margin over concentrates
(£ per day)
£3.975 £5.175 £6.00 £6.825 £7.65 £8.475
Margin over concentrates
(per litre)
26.5p 25.9p 24.0p 22.8p 21.9p 21.2p

DON'T MISS A TRICK - TREAT

Should you be investing in an additive for your maize silage?

Are You Still Unsure Which Product To Choose?

Start With A Very Simple Question You Need To Answer?

Is significant reduction of heating, energy loss and waste, best achieved by treating maize with a bacterial additive or is a chemical preservative more likely to produce a reliable, consistent result???

The independent work including recent research from MGA and Kingshay shows that chemical preservative treatments, keep the silage cooler for longer and the effects are more consistent than bacterial treatments. Now make your choice!!!

Ecocorn is based on the most commonly used chemical food preservative Potassium Sorbate.

As you consider your options weather to us Ecocorn or not, there are 2 facts to take on board.

1. The Typical Dry Matter Loss from the maize silage process (from field to cow) is recognised as being at least 20%. These losses at 32% Dry Matter can be represented as follows

2. Recent figures put the value of maize in a ration at around £100/tonne of Dry Matter

SO HOW CAN YOU SIGNIFICANTLY REDUCE THESE LOSSES?

  • Fill clamp with long ramp in thin layers
  • Roll continuously… no dual wheels
  • Only lengthen chop under 30% DM
  • With a late crop, chop under 1cm
  • Fill in one day or sheet at night
  • Apply Ecocorn with a focus on the top half
  • Use double top and enveloped side sheet
  • Use New Clamp Film under the black plastic
  • Top weight must be consistant

Ecocorn Treatment … The Facts and Figures from Independent Trials

  • You can reduce typical Energy Losses from £90 down to £45/acre so saving £45 /acre
  • You can increase Milk Yield By £90/acre (assuming: 8t/acre:25p/L:50/50maize,grass)
  • Cost of treatment £26/acre so a 5:1 return after product cost can be achieved

So give us a call on 01948 661602 for Ecocorn, Clampfilm or just for good advice.

CLAMPFILM

Provides a simple, efficient and cost effective way of sealing a clamp that effectively "vacuum packs" the feed thus eliminating spoilage, preserving quality and protecting your profits...

WINTER FEEDS AVAILABLE FROM GP FEEDS

Dairy

Select 18 Nuts

A highly cost effective range, which has sold very well through last winter. We now have two summer rations following on from last winters' successful launch. Contains: Wheat, Barley, Wheatfeed, Palm Kernal, Soya Hulls, Sunflower, Rapemeal, Molasses, Mins & Vits, Vegetable Fat.

Enhance 18 Nuts

Very high in energy and quality proteins, with good digestible fibre sources readily available. Contains: Wheat, Wheatfeed, Palm Kernal, Soya Hulls, Wheat Distillers, Sunflower, Rapemeal, Biscuitmeal, Molasses, Mins & Vits, Sopralin and Megalac.

Supreme HDF 18 Nuts

To be fed where a good fibre source is required. Excellent energy levels. Contains: Hipro Soya, Sugarbeet, Wheat, Rapemeal, Maize Distillers, Maize, Sunflower, Citrus, Palm Kernal, Molasses, Megalac, Mins & Vits and Vegetable Fat.

Excel 18 Nuts

Top quality ingredients blended together for cows with yields in excess of 7,000 litres. Contains: Wheat, Hipro Soya, Sugarbeet, Biscuitmeal, Rapemeal, Maize Distillers, Maize, Palm Kernal, Molasses, Sopralin, Megalac, Mins & Vits and Vegetables Fat.

All the above rations are also available in 20% & 22% Nuts or Blend form.

Dairy 10,000 Litre Nuts

The 'Rolls Royce' of our range. A specialist product for high yielding cows in excess of 8,000 litres. This
product has been proved time and time again to increase milk production. There is no equal! Contains: Wheat, Maize, Palm Kernal, Wheat Distillers, Hipro Soya, Sugarbeet, Biscuitmeal, Molasses, Mins & Vits, Sopralin, Megalac and Vegetable Fat.


Youngstock

Coarse calf 16 Mixture

For feeding to all calves from 3 days of age to 10-12 weeks. Includes flaked peas and flaked maize for maximum digestibility. Contains: Barley, Hipro Soya, Sugarbeet, Molasses, Mins & Vits, Sopralin, Flaked Maize, Oatfeed, Flaked Peas, 30% Protein Pellet.

Calf Starter Pellets

For feeding to all calves from 3 days of age to 10-12 weeks. Contains: Wheat, Wheatfeed, Palm Kernal, Soya Hulls, Maize Distillers, Rapemeal, Sugarbeet, Citrus, Molasses, Mins & Vits and Vegetable Fat.

GPF Heifer Nuts

For heifer replacements on silage systems where good growth is required from 12 weeks to calving. Contains: Wheat, Sugarbeet, Rapemeal, Biscuitmeal, Palm Kernal, Wheatfeed, Sunflower, Molasses, Mins & Vits and Vegetable Fat.

A QUALITY PRODUCT TO PRODUCE QUALITY RESULTS
Phone the office today on 01948 661602 to discuss your needs.

Beef

GPF Beef 16 Nuts

From 12 weeks to slaughter on all beef systems for maximum growth. Contains: Wheat, Rape Meal, Wheatfeed, Soya Hulls, Palm Kernel, Molasses, Sunflower, Supagold Biscuit Meal, Sugarbeet, Min/Vits, Vegetable Fat.

Intensive 14% Beef Blend

Course blend designed to fed with forage of your choice to all types of beef animals. Contains: Wheat, Barley, Sugarbeet, Citrus, Soya Hulls, Wheatfeed, Molasses, Mins & Vits, Oatfeed and 30% Protein Pellet.

18% Beef Blend

Course blend designed to be mixed with on farm cereals for all types of beef cattle. Contains: Sugarbeet, Wheat Distillers, Rapemeal, Citrus, Soya Hulls, Palm Kernal, Wheatfeed, Molasses and Mins & Vits.

A QUALITY PRODUCT TO PRODUCE QUALITY RESULTS
Phone the office today on 01948 661602 to discuss your needs.

NEW FAT PRODUCT

The first UK produced fat supplement manufactured from certified sustainable palm oil has been announced by Volac. From their factory in Liverpool this new product, called MEGAPRO 30S...

WHERE DO WE GO FROM HERE?

The Agriculture and Horticulture Development Board says that this seasons' global wheat crop is forecast at 674 million tonnes, which is more than last year, mainly due to severe droughts in Russia and Ukraine in 2010.

So why are wheat prices currently so high? There are many aspects causing this, some of them purely speculation, but suggestions are that it is caused by the maize supply and demand situation. Maize dominates as the worlds' main feed grain accounting for 70% of all grain fed world-wide to animals over the past five years - wheat accounted for 16%.

Due to the tightness in the current maize market, and increasing demand, export prices of US Maize (the global benchmark price for all feed grains) have increased by 50% in the last twelve months (approximately £180 per tonne). When you factor in price, nutritional value and availability it is possible to substitute one grain for another in animal feed rations, so based on this, relative to maize, feed wheat looks cheap. This is encouraging feed producers in key demand areas (including Asia) to substitute wheat for maize in rations. The correct forecast states that the global animal feed demand for wheat is set to increase to its highest level for over 20 years. This is causing feed wheat prices to be influenced by the maize market.

Therefore it is unlikely that feed wheat prices will see substantial falls in the next nine months. Beyond this, prices will be dependent on the growing conditions for crops harvested in 2012. We feel that this message shows cereal prices will not drop and probably will see a continued rise in price over the winter. With this in mind we are now in a position to offer fixed price contracts for the winter both on parlour cake and blends. With the majority of blends being bespoke to individual customers' needs, why not ring us with your own requirements and we will gladly price it for you and guarantee no change in formulation or price unless you tell us to alter the formulation.

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