Component Efficiency: Calculate the key to profitability
Component efficiency is a biological index of the performance of the cow on the diet in the herd environment. It’s simply measured as the percent of the herd average dry matter intake converted into pounds of milk fat and protein, on a per cow per day basis.
Since a dairy is limited by the number of cows it can house and feed, profitability hinges on housing and feeding a herd that is highly efficient at producing components. High milk production doesn’t always equal profitability. Making your milk more valuable starts by maximizing the amount of fat and protein components in the milk, and how efficiently a cow is producing them.
Component Efficiency Calculator
Cargill successfully feeds thousands of herds by focusing on component efficiency – you could be one of them. Calculate where your herd is at with our interactive tool below!
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The economic return for improvement in component efficiency is enormous since greater than 80% of the milk value is derived from the pounds of milk fat and protein, while diet cost makes up more than 60% of the dairy’s operational costs.
Component efficiency can be improved by increasing component production relative to dry matter intake. Moving a herd’s component efficiency up one percentage point can result in a measurable increase of net milk revenue over feed cost per cow per day.
This Component Efficiency calculator is provided for educational purposes only. Cargill makes no warranties regarding the Component Efficiency Calculator or its results.
Component Production: Is Your Herd Up to Par?
Component efficiency is one of the best ways to monitor herd performance and profitability, however this concept is still foreign to many dairy producers. Watch this video of Dr. Hank Spencer’s World Dairy Expo presentation for practical management and nutrition tips for improving component efficiency and fully leveraging the value of the component market.