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Maximize Dairy Profits: Optimizing Income Over Feed Cost with EZfeed

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Imagine reducing your feed bill by thousands simply by using this one metric! I wish it were that simple – but the hard reality is that it’s not. Have you ever faced the challenge of deciphering which financial metrics will truly lead to cost savings for your dairy operation?

There are many key metrics – all of which indicate something… but the significance of which is often hard to understand. Income Over Feed Cost (IOFC) is one of these metrics – however, unlike others, it’s a pretty straightforward number that offers a snapshot of profitability by measuring the revenue from milk after your feed costs.

But how do you ensure this number is working for you? EZfeed can’t simply calculate IOFC without the right data already in place. Therefore, one might argue that the process of obtaining the IOFC metric is the real benefit. Once you can see a consistent snapshot of your IOFC, the real beauty is that it considers fluctuating milk prices and feed costs – two volatile factors in your dairy finances.

In the following article, we’ll discuss how EZfeed not only calculates IOFC but also supports the diligent practices that bring this metric to fruition.

How EZfeed Ensures Precise IOFC Calculations

Calculating your IOFC is not a one-time task; it's a commitment to ongoing accuracy in your dairy’s data management. EZfeed helps you ensure that the procedures you've established for your feeding processes are followed and that ingredients are used accurately. While the EZfeed software is designed to perform accurate IOFC calculations, the quality of the data you input is crucial—garbage in, garbage out, as they say in the data world.

Here are the essential areas you’ll want to fine-tune to make sure EZfeed can generate an accurate IOFC for your operation:

  • Feed Price Accuracy: Every ingredient in your inventory must have an up-to-date price. This ensures that your feed costs reflect the reality of today’s market and your specific contracts.
  • Regular Milk Production Updates: Importing milk production data shouldn't be an afterthought. Regular updates mean real-time insights into your dairy’s performance.
  • Milk Price Monitoring: Since the price you're getting for your milk can vary, capturing these changes is crucial for an accurate IOFC.
  • Feeding Efficiency: Are your animals getting the correct TMR? Daily reports help you verify your feed strategy is effective.
  • Intake Optimization: Beyond providing feed, you can ensure your animals are consuming the right amount. Their intake influences both their health and milk production.

The value of EZfeed is more than simply presenting numbers; it can help you action based on accurate and timely data. It's a tool that needs your proactive involvement—from updating feed prices and contracts to recording every load delivered. The more consistent and precise your data entries, the clearer the picture of your dairy's profitability.

And remember, EZfeed doesn't leave you to guess if something's wrong. Should there be a discrepancy or missing data, it alerts you with an error and a hint on where to look. This isn't about making more work for you; it's about making sure every figure you work with is a step towards a more profitable dairy.

The Bottom Line: Does IOFC Matter for Your Dairy's Success?

There’s a lot of hype about IOFC, but in my experience, it’s usually a number that’s a bit mysterious for our customers. So… it's time to put on your strategic hat and ponder—does IOFC align with your business objectives? This isn't just about adopting another metric; it's a chance to reflect on your farm’s ability to be efficient and translate feed into income.

Let’s cut through the complexity and consider what IOFC can offer if you’re ready to invest the effort:

  • Profitability Indicator: IOFC isn't a mysterious figure shrouded in farm folklore; it's a concrete indicator of how your dairy stacks up in turning feed into milk. A higher IOFC generally signals more money in your pocket post-feed bills. But it’s more than just a high score—it’s a sign that you’re on the right track with your milk production efficiency.
  • Informed Decision-Making: Imagine having a financial compass for decisions like tweaking feed rations or optimizing herd size. IOFC offers you just that—a numerical guide to navigating the economic waves of fluctuating milk prices and feed costs.

At this point, ask yourself: Are the benefits worth the effort? Will knowing your IOFC make a difference in how you manage daily operations? If you foresee the potential for finer financial tuning and enhanced decision-making, then it's a metric that deserves your attention and diligence.

How can EZfeed help with your plans? By simplifying the data gathering and analysis.

But, EZfeed doesn't just hand you numbers—it equips you with knowledge. It’s about you being willing to dive into the nitty-gritty of your data collection – ensuring everything going into your database is accurate. EZfeed then transforms your meticulous data entry into powerful insights, enabling you to direct your attention toward strategies that support your business goals.

Do you think this investment in time and attention will be worth it? If you’re leaning towards yes – keep reading.

How EZfeed Streamlines the Path to Accurate IOFC Calculations

Harnessing the full potential of IOFC begins with robust data entry and ends with insightful analysis — that's where EZfeed steps in. EZfeed can help with each of the factors involved in calculating IOFC. Let’s break down how EZfeed supports each step of the data gathering process:

  1. Milk Data Integration

    There are many ways to get milk data into EZfeed. Simply, you could use data from EZweights to weigh milk as your milk processor takes it off your farm. Manually enter those weights and combine that with the price you get for the milk, and you’ll have the milk data you need.

    However, to be very accurate and to automate the process, best practice would be to automatically import milk data from your processor. Many milk processors integrate with services or provide files that make this easy – this way you can also get energy corrected milk data giving you even more insights to your feeding process.

  2. Accurate Feed Costs

    EZfeed has a very easy interface to look through your list of ingredients and add costs to each ingredient. By doing this, you’re feed costs will automatically be calculated as the inventory is fed to the cows.

    Are you locking in prices with feed contracts? EZfeed helps you assign these contracts to incoming deliveries. The feed contract data will automatically attach the prices to your ingredients as you receive shipments. If you use EZfeed in conjunction with EZweights this process can be automated to keep your prices accurate.

  3. Efficient Feed Management

    EZfeed was built for efficient feed management. From the start of a contract or the delivery from your fields, it can help you keep track of your inventory and cost.

    The software excels in detailing the journey of your feed - from the storage bunks to the mixing wagon, and finally to your animals. Each step is monitored: the mixing of premixes, the careful combination of ingredients in your rations, and the precise delivery to your herd. EZfeed ensures that every pound of feed is accounted for and used to its maximum potential.

    By enabling you to meticulously track the use of each feed ingredient, EZfeed not only clarifies your feed costs but also highlights opportunities to gain efficiency. Whether it’s adjusting rations based on intake or avoiding waste, EZfeed provides the insights you need.

    The flexibility of the software shines when problems arise. If an entry error occurs or a price update is needed, EZfeed’s time-sensitive data allows you to backtrack and correct the information, ensuring your feed management records are always up-to-date from that point forward.

  4. Income Over Feed Cost Reporting

    Once your data is in place, EZfeed doesn't just leave you with raw numbers. It offers a comprehensive quick summary of all of your important key indicators to help with feed management. IOFC is one of the key indicators that is displayed allowing you to compare multiple periods of time. And if something doesn’t add up, EZfeed displays the numbers in red prompting you to investigate. When you hover over the numbers, it will give you a hint of where the problem exists so you can fix it.

Watch a Video to see EZfeed in Action

The accompanying video will give you a visual walkthrough of these steps in action, showcasing the power of EZfeed.

Management Strategies

Understanding your IOFC gives you a starting point for optimizing your business strategies. This number gives you an indicator of how your main management strategies are doing such as:

  • Optimizing your feed rations: Ensuring your animals receive a nutritionally balanced diet can help maximize the quantity and quality of your milk production without excessive feed costs.
  • Herd Management: Maintaining a healthy and productive herd is vital for optimal milk production.
  • Monitoring Market Trends: Keeping an eye on milk and feed market trends can help you make timely decisions. Keeping track of your contracts in EZfeed can help you get the most out of contracts that are optimized to reduce your feed cost risks.


Income over feed cost is a key metric in dairy farm management – the insights it can provide are a reason why it’s part of the Quick Summary report in EZfeed software.

Effective management of both milk production and feed costs are essential for optimizing profits. To evaluate your usage of the IOFC metric in EZfeed, contact customer support to evaluate your unique situation.

We'd recommend some further reading to learn more about optimizing feeding efficiency and your feeding data: