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Making the Most of Milk Prices: Why Feeding Crecora Mills Dairy Nuts Pays Off

Making the Most of Milk Prices: Why Feeding Crecora Mills Dairy Nuts Pays Off

In the next few months, every litre of milk counts. With milk prices under pressure (several co-ops have cut their price per litre recently) Agriland+2Irish Examiner+2, dairy farmers need to look closer than ever at the margins. One of the smartest places to protect margin is in feed — because good feeding pays back in extra litres, better components, improved health, and longevity.

Feeding a premium product like Crecora Mills Dairy Nuts is more than expense — it’s an investment. Here’s how the financials stack up:


1. Increased Milk Yield per Cow

A better energy–protein balance leads to higher milk output. Suppose switching cows (or blending part of the diet) to Dairy Nuts yields even 0.5 to 1.0 L extra per cow per day (a conservative estimate in many well-formulated trials).

  • Over a 150-day lactation window, that’s 75 to 150 extra litres per cow.

  • If milk price is ~ 48 c/L (including bonuses, etc.) (recent quoted rates are around this ballpark) Irish Examiner+2Irish Examiner+2, that’s €36 to €72 extra income per cow from yield alone.

  • On a 100-cow herd, that becomes €3,600 to €7,200 additional revenue in that period.

Even if the real gain is half that, it still gives you a buffer when prices drop.


2. Better Milk Components & Quality Bonuses

Higher quality feed helps push up butterfat and protein, lower somatic cell counts, and fewer milk quality penalties. Many co-ops offer bonuses for low SCC or sustainability/quality payments Agriland+2ICMSA+2.

Improving components by even 0.05–0.10% on a large volume can translate into extra cents per litre. That bonus money helps offset feed cost risk.


3. Health, Fertility & Longevity Savings

Feeding a more consistent, balanced ration reduces metabolic stress, lowers incidence of mastitis, acidosis, and other disorders. Fewer vet bills, less milk discarded, lower culling rates — all of these reduce costs.

Better fertility means cows get back in calf quicker, fewer dry days, and longer productive lives. The net effect is lower replacement costs over the years ScienceDirect+3Teagasc+3researchrepository.universityofgalway.ie+3.


4. Feed Efficiency & Cost per Litre

Premium nuts may cost more per tonne than basic rations, but the cost per litre of milk produced is the real metric. If Dairy Nuts push your feed conversion (kg feed needed per litre) lower, your effective cost per litre falls.

You might be willing to pay, say, €20–30 more per tonne if you end up producing 5–10% more milk per cow — depending on your scale, that extra milk covers the higher feed cost plus something in your pocket.


5. Risk Mitigation in a Falling Milk Price Environment

Milk prices are trending downward in some regions (recent reductions by co-ops) Agriland+1. If you rely on a low-cost, lower-performing diet, a price drop hits you harder. But with a higher-yield, higher-quality herd, your margin cushion is bigger.

In other words: when milk price falls, a high-performing cow offsets more of the revenue shock than a low-producing one.


Sample Financial Illustration (Hypothetical)

Metric Base Diet With Dairy Nuts (Hypothesis)
Milk yield per cow/day 25 L 25.8 L (+0.8 L)
Days in lactation measured 150 150
Extra milk per cow — 120 L extra
Price per litre €0.48 €0.48
Extra revenue per cow — €57.60
Herd size 80 cows 80 cows
Total extra revenue — €4,608
Extra feed cost (nut premium) — €1,200 (approx)
Net gain — €3,400+

This is a simplified illustration; your actual numbers depend on herd size, feed cost differential, and realized yield gains. The point is the upside is significant — enough to make the premium worthwhile.


What To Watch / Manage

  • Monitor feed costs closely and compare to revenue gain.

  • Track milk components & bonuses to see if quality improves.

  • Keep a close eye on health and fertility metrics.

  • Be cautious with overfeeding or imbalance — always feed a balanced ration.

  • Ensure your feeding system keeps consistency — you don’t want waste or mismatch.


Bottom Line

Feeding Crecora Mills Dairy Nuts is not just a cost — it’s a lever to enhance output, push quality, reduce health losses, and better absorb milk price volatility. In an environment where milk price is no longer guaranteed to rise, those extra litres, bonuses, and risk buffers can make the difference between scraping a profit and making real gains.

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Dairy Seminar Summary 21st Dec 2016

Crecora Mills Dairy Seminar Dec 2016

This is a brief summary of some of the topics that were discussed at our Dairy Seminar held in the Rathkeale House Hotel on 21st Dec 2016.

The guest speaker was Jim Uprichard from Trouw nutrition. Jim is a well respected nutritionist that has a lot of hand on experience with Irish dairy herds both North and South of the border.

We discussed world markets briefly and the information coming back from dairy production globally is that most countries in Europe produced less milk last year than previously. Our neighbour the UK was down 6%. Ireland was up just over 2%. The cost of producing milk in China is still over 4o cents per litre which means they are a good deal away from not depending on Australasia milk suppliers.

The US is the big change in that they are increasing their milk output but that is coming into line with their ever increasing population.  If you extrapolate out the Global price of all the Milk byproducts and work backwards to a farm gate price it amounts to around 31.5 cents per litre. We are not there yet but we are on the way.

Brexit was also discussed. It appears that this is a very difficult one to call as it appears that there is no plan to keep those that voted to Leave happy now that the Leave campaigners have walked away from government. If they go for a Soft Brexit it will be the least change for us as EU members.

If they go for a Hard Brexit it means that we as members of the EU will have to wait on any trade deals to be negotiated with the EU as a whole. We could not negotiate on our own with the UK as an EU member.

One would imagine a soft Brexit is more likely but then again most of us thought that they would vote to remain also.

Animal Nutrition was the heart and soul of the seminar really.

Jim outlined a range of different issues that we discussed.

One of which was that Body condition scores on cows seem to be back a little (0.5) across the country. This is probably from the extended grazing in the last month and grass quality maybe not being as good as was thought.

Jim recommended feeding a low protein high maize dairy nut in spring as the best value per unit of energy. Ideally a nut with Maize, Beetpulp, Soya Hulls for fibre a little Barley and maybe a rumen buffer to try to offset the problems with grazing fresh grass.

Calf development was discussed at length with a comprehensive step by step look at the TROUW lifestart calf programme. A number of very interesting things were discussed such as:

  • the value of colostrum,
  • the value of feeding a good quality milk replacer,
  • The economic difference on growing the replacement heifer faster
  • Learning how to switch on the potential genetics of the heifer through correct nutrition.
  • The value of feeding a larger diameter pellet instead of a ration to prevent calf selection of large particles.

We also had a questions and answers session where a number of good questions arose.

Issues around Cows eating stones and licking clay and the causes of it. Was it really a Phosphorous deficiency or could it be Acidosis?

What type of milk replacer should you feed?

The value in feeding low potash silage to dry cows before calving.

The meeting finished up with complimentary teas and sandwiches served afterwards.

We at Crecora Mills would like to thank Jim Uprichard and the Rathkeale House hotel for their help and expertise in running another enjoyable and informative Dairy seminar.

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Low Milk Price Case Study

Final_O'Connell's Crecora Mills_Logo

Here at Crecora Mills we are getting lots of questions on farms as to what dairy farmers options are at the moment.

Lets look at an average Case study of a Herd of 100 cows.

We will assume that calving will be starting in early January and running on into late March.

Option 1. Dry off all cows on November 1st

Option 2 Dry off all cows in December 1st

Option 3 Dry off the 60 cows on December 1st that will calve early and keep 40 late calving cows milking till Jan.

Option 1 Dry off all cows on November 1st.

Note: Zero dairy income after November.

“Sure there is no point milking on at this level is there?”

“I’ve never done it before because I was always over quota”.

The advantages:

  • A little less work although he will still have to feed silage, clean out sheds and all other farm work etc.
  • He is sick of being paid a low milk price all year and wants to throw his hat at it. All the neighbours are talking about drying off, doom and gloom prevail.

The disadvantages:

  • The Milk cheque stops coming in.
  • Reduced Cashflow.
  • Some cows facing into a 4 month dry period that will result in fat cows and difficult calving and Vet bills.
  • They will still have to be fed and looked after.

Option 2 Dry off all cows on December 1st.

” I need a break from Milking”

“Sure it wont pay me to keep milking now on small volumes.”

Assuming cows milking only 14 litres at high milk solids probably 30 cent per litre. 100 cows will milk €12,600 worth of milk. Assuming a feed level of high quality Crecora Mills feed at 5kg per cow for the month of November at €250 euro per ton( or less depending on what feed you select from Crecora Mills) means it will cost €3,750 in feed.

That’s a Minimum profit in 30 days of €8,850 over farmer who dried off in November. (He could well afford to get a relief milker in for November if he needed a break)

The advantages:

  •  The farmer gets a 2 month break from milking but all other farm work has to be done.
  • The cows that are due to calve early will be dried off in good body condition

The disadvantages:

  • Reduced cashflow as the milk cheque stops coming in after December.
  • Some cows will not be due to calve till March get a 4 month dry period
  • Fat later calving cows will be almost guaranteed to cause expensive problems at calving.
  • Cows still have to be fed silage and minerals.

Option 3 Dry off 60 Early calvers in December and keep late calving cows milking till January

“The milk cheque might be small but it is keeping the whole show going”

“Sure I have to be out working on the farm anyway I may as well milk along a few cows”

Disadvantages:

  • A little extra farm work, although he will still be feeding them silage. Cows have to be milked ( you could get a Farm relief milker)

Advantages.

  • Early calving cows get a decent dry period but not too long.
  • 40 Late calving cows will be on high solids and should leave at least €3500 profit after concentrate feed costs.
  • 40 late calving cows will go into calving with a shorter dry period and should be in better body condition.

These 40 cows should milk 13 litres at high milk solids (30 cent/litre) if they have been looked after all year. 40 cows in December will produce €4,836 worth of milk on 6.2 kgs of Crecora Mills feed at 5kgs feeding rate. That’s a maximum feed cost of €1550 (assuming €250 euro per ton depending on which of our feeds are used it may be considerably less) Profit from those 40 cows alone for December will be €3286 euro. The farmer could surely get a relief milker in for December to milk 40 cows if he/she needed a break from milking.

Interestingly the profit difference between the Farmer that dries off in November and the farmer that the 40 cows going till January is €12,136 for 2 months work. I know i would milk cows twice a day for that kind of money! The other often forgotten but arguably more important advantages are that the farmer can control and manage body condition better in the parlour. Less fat cows has a hugely positive effect on:

  • The ease of calving

  • Subsequent milk yield

  • Subsequent milk volume

  • Reproduction

  • Cow health

All massively crucial milestones in cow nutrition and health.

Remember to only “Mix with the Best” and use Crecora Mills Feed.

Crecora Mills

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