Adisseo

News Release: A strategy to promote revenue and cash flow

06/13/2019

Alpharetta, GA (February 28, 2019)

Dairy farmers in the Federal Milk Marketing Orders (FMMOs) are encouraged to increase the volume of milk, butterfat, and milk protein their herds produce. Increasing all three will increase revenue and cash flow, according to independent consultant John Geuss. Geuss recently discussed the FMMO pricing structure and the impact of components on revenue and cash flow during the Western Dairy Management Conference.

In the FMMOs, the announced Class III milk price is based on 3.0 percent milk protein, 3.5 percent butterfat, and 5.7 percent other solids.  Component levels above these rates provide incremental revenue and cash flow at the announced price rates for these components.  Additional milk per cow may also add to revenue and cash flow.

One of the time-proven management tools for raising all three – milk yield, milk protein, and milkfat —  is properly balancing the amino acid levels in rations. Doing so results in rations that more fully meet the nutrient requirements of dairy cows, according to Dr. Brian Sloan, Global and North and Central America Regional Business Director, Adisseo.

“Typically methionine and lysine are the first limiting amino acids in rations,” says Sloan. “Because they are in short supply, they can limit an animal’s production and performance.”

Increasing the level of these amino acids in the ration while maintaining the right ratio of lysine to methionine results in production increases. A compilation of carefully measured trials shows an average increase of  0.18 percentage point in butterfat, an average increase of 0.14 percentage point in milk protein, and a 2.0 pound increase in milk volume when the amino acid levels are balanced properly.

Balancing amino acids also provides long-term benefits to health and reproduction. Fewer metabolic diseases occur at transition, breed backs become more timely, and more pregnancies reach full term. Typically, the combined benefits of amino acid balancing outweigh any incremental change in feed costs for a net increase in revenue and cash flow. For these reasons, daily supplementation with limiting amino acids is becoming as common as daily supplementation with vitamins and minerals.

Increasing herd components and milk volume are key for individual dairy farmers to increase their personal farm-gate Class III milk price.  By increasing butterfat and milk protein yields, dairy farmers increase revenue and cash flow. Increases in butterfat alone do not maximize revenue and cash flow.

 

Tweets

[Breaking News] What's the impact on #energy consumption in #feed production? 🤔
Birger Svihus, professor at the Norwegian University of Life Sciences, discusses on this in our last webinar: "How to optimize energy consumption in the feed mill".
Replay 📺 https://t.co/ZkmFOrH7zn https://t.co/orAd7Df34I
Adisseo photo
[Engagement] In 1990, Adisseo decided to support the "Responsible Care" initiative 🌍
What's it? A #commitment by the global #chemical industry to the safe management of chemicals throughout their life cycle, which is regularly renewed 🌱
More info ➡️ https://t.co/bFoAa8FgMy https://t.co/8RdJIFNR87
Adisseo photo
Our #sales team is hiring! 👏
We are looking for a Specialties Technical Sales Manager in #UK 🇬🇧
Who wants to work with us? 😉
Check out the offer ➡️ https://t.co/5WdBimlWWL https://t.co/dK5DW6FKrY
[Replay] Ready to check out all of the popular health videos & podcasts during #transition 2022? 😉
This mini-series helps understand why #metabolic diseases peak during the transition and what contributes to their development 🙌
All our podcasts & videos: https://t.co/vG3GkKMTvm https://t.co/mDgrPSQrSu
Adisseo photo
Happy Chinese #NewYear to all of our employees, clients, partners, providers and friends 🇨🇳🎊
We send you our best thoughts for the year of the #rabbit 🐇
Welcoming new and amazing things in 2️⃣0️⃣2️⃣3️⃣ ! 🙌 https://t.co/B19XV67m8y
Adisseo photo
How do #digestibility enhancers maximize available nutrients for transition #cows? 🧐
To optimize #rumen function, stimulate #fiber digestion and improve #production, feed with Nutri®-Ferm, the unique natural fungal fermentation product 🐮
Discover it 👉 https://t.co/bAHEi7rAwU https://t.co/i3K86yYrj0
Adisseo photo