As the dairy industry looks to improve both profitability and environmental impact, feed efficiency continues to move to the forefront of management discussions. For dairy farms, feed is the largest operating expense, therefore how efficiently cows convert feed into milk generates a lot of attention. 

Most commonly on farms, feed efficiency (FE) is evaluated using the ratio of energy-corrected milk (ECM) to dry matter intake (DMI) – expressed as ECM/DMI. While this metric provides base-level insight into cow efficiency, it doesn’t capture the full energetic or economic picture (1).  To make more informed decisions, producers should consider feed efficiency alongside other metrics, including Income Over Feed Costs (IOFC). 

IOFC measures how much milk income remains after paying for feed and provides a lens into profitability. Using FE and IOFC together balances feed conversion with economic return.  Below are five real-world scenarios showing how this combined approach provides deeper insight into cow, group, or herd performance.  Although the examples use individual cows, the same logic applies when evaluating pens or the entire herd. 

In today’s market, high milk quality and udder health are essential for meeting processor quality standards and ensuring farm profitability. Among all management practices, few have a greater impact on reducing mastitis and improving milk quality than a standardized, consistent milking routine (Rodriguez, 2025). Because milking staff carry out these routines every day, structured and continuous training is one of the most cost-effective investments a farm can make. 

Many dairy farms face challenges in workforce training, including high turnover, language barriers, limited formal education, and minimal agricultural experience (Rodriguez, 2025). Despite these challenges, training should be planned, organized, and intentional. In other words, having a clear plan for what workers need to learn, how they will learn it, and how successful training is going to be measured, is key.

3rd Tuesday of each month from 11 am - 12 pm CT

Virtual Fence Meets Pasture Nutrition for Maximum Productivity

Well‑managed pastures can deliver highly digestible, protein‑rich forage. Pasture alone rarely provides a perfectly balanced diet, especially for high‑producing dairy cows. Join us to hear from a dairy farmer using virtual fencing on his dairy heifers, research done on performance of heifers raised on pasture and in confinements operations, and how to get the most out of pastures to raise our dairy animals.

Dairy Right Way. Right Time. 

Dr. Herman presented on Right Way. Right Time.: A Guide to Cull Dairy Cattle Management, which provides practical, research-based guidance to help dairy producers make timely, responsible decisions about cows leaving the herd. The guide emphasizes maintaining cow health throughout her lifetime, identifying when an animal is no longer fit for the milking herd, and ensuring she is fit for transport before leaving the farm. It outlines best practices for evaluating mobility, body condition, injuries, disease, and overall welfare, as well as proper handling, loading, and marketing. The focus is on safeguarding animal well-being, meeting legal and industry requirements, and protecting the economic value of market dairy cattle.

Following Dr. Herman’s presentation, Jake Jacobs, Market Manager at Equity Livestock in Bonduel, WI joined the conversation. Together, they discussed the progress seen in the dairy cull cow market, what needs improvement, and where the industry is headed.

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For communicative accommodations in languages other than English, please contact oaic@extension.wisc.edu.

For communicative accommodations based on a disability, please contact Heather Lipinski Stelljes at: heather.stelljes@wisc.edu for the public.

Raising dairy calves and replacement heifers is a major expense for Wisconsin dairies; tracking these costs and benchmarking against peers supports better management decisions. Periodically, Wisconsin Extension Educators have collected farm level data to track these costs. Extension is currently seeking this information and needs your help.  If you are interested in having a dairy educator reach out to you, please provide your contact information by clicking the button below.

Information gathered includes average costs for the last complete month related to:

All hay prices quoted are dollars per ton FOB point of origin for alfalfa hay unless otherwise noted. The information presented in this report is compiled from public and private quality tested sales and reports in the Midwest. 

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