Comparing feed costs
It is getting increasingly expensive to feed sheep, goats, and other livestock. Even if you grow your own feed, there can be significant costs, including opportunity costs (selling the feed vs. feeding it). All producers should know how to compare feed costs and balance least-cost rations for their animals.
Feedstuffs are priced according to different units of measure: bushels, tons, pounds, or bales (of different sizes and weights). Thus, the first step in comparing feed costs is converting prices to an equivalent unit, usually pounds. For example, barley that sells for $6 per bushel has a price equivalent of $0.125 per pound ($6/bu ÷ 48 lbs/bu). Hay that costs $5 per bale also costs $0.125 per pound ($5/bale ÷ 40 lbs/bale), assuming the bales average 40 lbs. Lighter bales will increase the per pound cost. For this reason, hay should always be purchased by weight.
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Feedstuff |
Cost |
Unit |
Cost per lb. |
|---|---|---|---|
| Corn silage | $60 |
ton |
$0.030 |
| Hydroponic fodder | $0.05 |
pound |
$0.050 |
| Orchardgrass hay | $60 |
700-lb. bale |
$0.086 |
| Orchardgrass hay | $4 |
40 lb. bale |
$0.100 |
| Alfalfa hay | $250 |
ton |
$0.125 |
| Barley grain | $6 |
48-lb. bushel |
$0.125 |
| Soybean hulls | $250 |
ton |
$0.125 |
| Orchardgrass hay | $4 |
30 lb. bale |
$0.133 |
| Corn grain | $15 |
cwt |
$0.150 |
| Dried distiller's grains | $300 |
ton |
$0.150 |
| Alfalfa pellets | $400 |
ton |
$0.200 |
| Soybean meal | $400 |
ton |
$0.200 |
| Commercial feed | $14 |
50-lb bag |
$0.280 |
Feed rations are balanced on an “as-fed” basis and feedstuffs are
priced “as-is,” meaning that a portion of the weight of the feed is
moisture (water). Because the dry matter content of feedstuffs
varies tremendously, prices must be converted to a dry matter (DM)
basis. This is especially important when you are comparing relatively
dry feeds (hay and grains) with high moisture feedstuffs, such as
silage, haylage, and green fodder.
To the determine the dry matter cost, all you have to do is
divide the price of the feedstuff by its dry matter content (%
DM). Barley (grain) is 89% dry matter, so its dry matter cost is
$0.14 per pound ($0.125/lb ÷ 89% DM). Conversely, hydroponic
fodder contains only 12% dry matter. At a cost of $0.05 per pound
(as-is), its dry matter cost is $0.417 per pound ($0.05/lb ÷ 12% DM),
making it a quite expensive feedstuff.
Feedstuff |
Cost per lb.1 |
% DM2 |
Cost per lb. of DM |
|---|---|---|---|
| Corn silage | $0.030 |
0.34 |
$0.088 |
| Orchardgrass hay | $0.100 |
0.88 |
$0.114 |
| Soybean hulls | $0.125 |
0.90 |
$0.138 |
| Barley grain | $0.125 |
0.89 |
$0.140 |
| Alfalfa hay | $0.125 |
0.88 |
$0.142 |
| Dried Disiller's grains | $0.150 |
0.91 |
$0.165 |
| Corn grain | $0.150 |
0.89 |
$0.169 |
| Alfalfa pellets | $0.200 |
0.92 |
$0.217 |
| Soybean meal | $0.200 |
0.91 |
$0.219 |
| Commercial feed | $0.280 |
0.90 |
$0.311 |
| Hydroponic fodder | $0.050 |
0.123 |
$0.417 |
Livestock do not require certain feeds; they require nutrients (protein, energy, minerals, and vitamins) in specified amounts. Feedstuffs vary considerably in the amount of protein, energy, and other nutrients that they contain. For this reason, the cost of providing a certain nutrient is the basis on which feedstuffs are compared.
To determine the cost of a nutrient, you divide the dry matter feed cost by the percent nutrient in the feed. In our examples, barley (grain) provides TDN (energy) at a cost of $0.167 per pound ($0.14/lb ÷ 84% TDN) whereas the cost of TDN in alfalfa hay is $0.245 per pound ($0.142 ÷ 58% TDN) and $0.587 per pound ($0.417 ÷ 71% TDN) for hydroponic fodder.
Feedstuff |
Per lb. cost DM |
% TDN2 |
Cost per lb. of TDN |
|---|---|---|---|
| Corn silage | $0.088 |
0.72 |
$0.122 |
| Barley grain | $0.140 |
0.84 |
$0.167 |
| Soybean hulls | $0.138 |
0.77 |
$0.179 |
| Dried Distiller's grains | $0.165 |
0.92 |
$0.181 |
| Corn grain | $0.169 |
0.88 |
$0.192 |
| Orchardgrass hay | $0.114 |
0.55 |
$0.207 |
| Alfalfa hay | $0.142 |
0.58 |
$0.245 |
| Alfalfa pellets | $0.217 |
0.61 |
$0.355 |
| Commercial feed | $0.311 |
0.72 |
$0.432 |
| Hydroponic fodder | $0.417 |
0.713 |
$0.587 |
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Similar calculations can be made for protein and other nutrients.
Feedstuff |
Per lb. cost DM |
% CP2 |
Cost per lb. of CP |
|---|---|---|---|
| Soybean meal | $0.219 |
0.49 |
$0.45 |
| Dried Distiller's grains | $0.165 |
0.29 |
$0.57 |
| Alfalfa hay | $0.142 |
0.17 |
$0.84 |
| Corn silage | $0.088 |
0.08 |
$1.10 |
| Orchardgrass hay | $0.114 |
0.10 |
$1.14 |
| Barley grain | $0.140 |
0.12 |
$1.17 |
| Soybean hulls | $0.165 |
0.13 |
$1.27 |
| Alfalfa pellets | $0.217 |
0.17 |
$1.28 |
| Corn grain | $0.169 |
0.09 |
$1.88 |
| Commercial feed | $0.311 |
0.16 |
$1.94 |
| Hydroponic fodder | $0.417 |
0.203 |
$2.06 |
The cost of a feedstuff needs to include its delivery cost to the farm. Another factor which will affect the cost of different feedstuffs is the degree of feed wastage. Some feeds have practically no wastage, whereas others can have signficant feed loss. Feeding method can have a large effect on feed wastage. Feeds that are improply stored can lose substantial nutritive value.
In these examples, corn silage and grains (barley and corn) are the most economical sources of energy (TDN) for sheep and goats. Soybean meal is the most economical source of protein. This will not be the case for every geographic location or farm. Different feedstuffs are available at different prices at different locations. To determine which are the most economical sources of nutrients for your farm, similar calculuations need to be made with available feedstuffs and their prices.
In order to compare the cost of nutrients of some feedstuffs, you should have them analyzed to determine their nutritive content. While grains and oilseeds have fairly consistent nutrient levels ("book" values can be used in calculations), forages and by-product feeds can vary signficantly in their nutritive values. For example, alfalfa hay can vary anywhere from 10 percent to more than 20 percent protein, depending upon when it was harvested for hay.
You can use this Excel spreadsheet to compare the nutrient costs of different feedstuffs: http://www.sheepandgoat.com/spreadsheets/CompareNutrientCosts.xlsx.
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Cost is not the only factor to consider when evaluating feedstuffs. There may be limitations as to how much of a feedstuff can be fed. For example, corn silage is a very economical source of nutrients, but a high-producing animal cannot eat enough of it to meet its nutritional requirements -- due to its high moisture content.
Feedstuffs need to be combined to create a ration that is 100 percent nutritionally balanced for the livestock being fed. Care must be taken not to create any dangerous imbalances.
Some feedstuffs contain high levels of certain minerals, which limits their inclusion in diets. For example, dried distiller's grains contain high levels of sulfur. Sulfur binds with copper and limits its absorption. Urea can only replace a portion of the protein in the diet.
There may be other factors to consider when evaluating feedstuffs. Some feedstuffs are more costly on a per pound basis, but may have other advantages that are difficult to put an economic value on. Nutritional tubs are a perfect example. Their direct cost of nutrients is very expensive, but they are great labor-savers.
Hydroponic fodder is also a very expensive source of nutrients, but it is a means of providing green grass year-round. Commercial feeds are expensive, but 100% nutritionally balanced and available in convenient 50-lb. bags.
1Feed costs in this article are realistic, but for example purposes only.2Table 15-11. Composition of Common Feedstuffs. Nutrient Requirements of Small Ruminants (NRC, 2007) and Table 12. Feed Composition Guide. Sheep Production Handbook (2002).
3Forage reports (barley fodder). Fodder Pro (FarmTek)
Copyright © 2013.
Created or last udpated 31-Mar-2013 by Susan Schoenian.
