Maximum-Profit Rations: A Look at the Results of the California System

Abstract

Use of computers to formulate least-cost rations has increased greatly in recent years, and many commercial feed companies routinely use linear programming methods in establishing ingredient formulas for their concentrate mixes. Efficacy of computer-formulated concentrate mixes and cost savings realized from feeding them to lactating dairy cows were reported by Bath et al. (1). Similar results with least-cost complete dairy rations were reported by Howard et al. (6). Successful as they have been, however, least-cost rations are not the final answer. The important thing to a dairyman is not how inexpensive his feed cost is but how much profit he makes. Since feed is the largest single expense item in milk production, it has the greatest potential effect on profit.Many other factors affect profit such as labor costs, land values, taxes, building and equipment costs, and depreciation. Except for labor, however, they are fixed costs and cannot be changed much by individual dairymen. A dairyman can control feeding practices and costs to a large extent.