The cost of feedstuffs for the dairy industry in the US is constantly fluctuating and Ohio is no exception. Figure 1 shows that the average cost of most feedstuffs reported in the article has decreased since the previous issue. However, Figure 2 reveals that many of these same feedstuffs are still not considered a bargain, despite the price decrease compared to those reported in the previous issue. These slight changes in the cost of feedstuffs can directly impact the income over feed costs for dairy producers.
Figure 1. The percentage change of the actual cost of 21 feedstuffs fed on Ohio dairy farms from March 26, 2025, to May 25, 2025. Feedstuffs that decreased in price since the previous issue are shown in green, while those that increased in price are colored red. The cost of corn silage did not change since March because it is priced on a biannual basis.
Figure 2. Actual and predicted cost of feedstuffs with 75% confidence interval (CI) of 21 feed commodities fed on Ohio Dairy Farms; May 25, 2025. Feedstuffs that are priced above the upper prediction price limit are overpriced (red bars). Feedstuffs that fall within the upper and lower limits of the predicted prices are breakeven feeds (grey bars). Feedstuffs that are priced below the lower prediction price limit are considered a bargain (green bars).
Economic Value of Feeds
Figure 2 displays the costs for the 21 reported commodities in Ohio. These results were produced by SESAMETM for the central Ohio region on May 25, 2025. In Figure 2, the bargain feedstuffs (green), the overpriced feedstuffs (red), and the breakeven feedstuffs (grey) are displayed, along with their average costs and predicted costs. These prices and estimates are from a point in time and their economic classification may change from what is reported, though they remain as a useful tool to predict the cost of feedstuff changes in a ration and to summarize market trends in the Ohio region. In May, there are more feedstuffs classified as overpriced than in March. Whole roasted soybeans and soybean meal continue to be costly commodities. This month, corn gluten meal is overpriced, despite being classified as a bargain in the previous issue. Common feedstuffs such as dried distillers grains and wheat middlings continue to be classified as bargain buys. While it is necessary to consider the costs of feedstuffs, the prices are not the only thing that should be considered when formulating a ration. Some of the “bargain” priced commodities can have a place in a dairy cattle ration, though it is important to consider the investment opportunity that might come from feeding “overpriced” feedstuffs.
The appraisal set, shown in Table 1, predicts the prices for the commodities that did not have a current local price. These commodity prices were predicted by SESAMETM and represent the estimated value at one specific point in time and are therefore subject to change. These values may be used as a benchmark if you are considering purchasing these ingredients for your dairy farm.
Table 1. Estimated feedstuffs prices not reported for Ohio, May 25, 2025.
Feed Nutrient Prices
The cost of net energy of lactation (NEL) experienced about a 76% change since March, increasing to $0.0301/ lb. This change is not favorable to producers. However, the cost of metabolizable protein (MP) experienced a decreased 11% change. Though the cost of physically effective fiber (e-NDF) changed by about 0.6% less than the previous month, it remains relatively constant. Values of nutrients are shown in Table 2.
Table 2. Prices of nutrients for Ohio dairy farms, May 25, 2025, compared to March 26, 2025.
Milk and Milk Component Prices
The Class III milk price was $20.37/cwt in May, increasing about $0.20/cwt from the previous issue. However, the price of butter fat and milk protein each decreased by about $0.48/lb and $0.36/lb, respectively. The Cow-Jones Index estimates the profitability of milk production, considering factors including the nutrient input costs displayed in Table 2, cow production metrics, and the current milk and component prices which are shown in Table 3. The prediction formula uses a 1500 lb cow, producing milk with 4.09% fat and 3.22% protein. This month, the income over nutrient cost (IONC) for cows milking 85 lb/day and 70 lb/day is about $11.40/cwt and $10.94 /cwt, respectively. Both estimates are expected to be profitable, despite not including factors such as replacement and cull cows in the herd. However, these margins of profitability are much narrower than those seen in recent issues.
Table 3. Prices of milk and milk components, sourced from the Federal Marketing Order 33, for Ohio dairy farms, May 25, 2025, compared to March 26, 2025.
In May, the Ohio dairy industry experienced a slightly reduced cost of production and an increase in Class III milk. However, there was also a decrease in the price received for butter fat and milk protein. Additionally, many feedstuffs are not classified as bargains in this issue. These combined effects resulted in a reduced predicted profitability for dairy producers in the month of May.
