How Feed Stock Management with Precision Feeding Software Saves Money on Dairy and Beef Farms

Feed is the largest single cost in dairy and beef farming, representing up to 60% of total production expenses (Zanton & Heinrichs, 2020). While precision feeding software is often recognized for improving ration accuracy, an equally critical but sometimes overlooked benefit is feed stock management.

Efficient feed stock management leads to substantial economic savings through:

• Reducing shrinkage (loss of feed between purchase and consumption)
• Minimizing overordering or underutilization of feedstocks
• Detecting deviations early (e.g., dry matter changes affecting inventories)
• Supporting better purchasing decisions and cost control over time

The Key Problem: Shrinkage and Waste

Feed shrinkage typically occurs due to spoilage, spillage, transport losses, and improper storage practices. According to studies by Cornell University PRO-DAIRY (2020), unmonitored shrinkage can account for up to 10-20% of purchased feed material losses.

For a farm purchasing €300,000 of feed annually, 20% shrinkage could represent €60,000 lost per year.

The Solution: Precision Software Feed Stock Management

Precision feeding management software allows farmers to:

• Track real-time feed usage: Every kg loaded into the mixer is recorded and compared to stock levels.
• Monitor dry matter variations: NIR sensors combined with software adjust recipes dynamically, preserving stock accuracy.
• Set minimum and maximum inventory thresholds: This prevents emergency purchases or spoilage from excess stock.
• Analyze consumption trends: Generate detailed reports to anticipate needs and plan efficient purchases.

Tools like DTM integrate these functions, providing dynamic stock monitoring linked directly to actual feed deliveries—not estimated or assumed values.

Research Evidence Supporting Stock Management Benefits

Practical Example

Farm Scenario: 150 cows, €250,000 annual feed budget

Without software:

• Estimated shrinkage: 15% (€37,500 wasted annually)

With precision feeding software:

• Shrinkage reduced to 5% (€12,500 wasted)

Savings from stock management alone:
€37,500 – €12,500 = €25,000 per year saved

Conclusion

Managing feed stock with a precision feeding software like DTM is not a secondary function—it is a strategic financial advantage. By reducing shrinkage, stabilizing inventories, and aligning real-time data with purchasing decisions, dairy and beef farms can protect and optimize one of their largest investments.

In combination with improved ration accuracy and labor efficiency, feed stock management significantly increases the overall return on investment (ROI) of precision feeding technologies.

Bibliography

• Jones, C., & Endres, M. I. (2018). Impacts of Feeding Management Technologies on Dairy Farms. University of Wisconsin-Madison Extension. 
• PRO-DAIRY (2020). Feeding Management and Technology for Profitability. Cornell University, College of Agriculture and Life Sciences.
• LeBlanc, S. et al. (2021). Precision Dairy Technologies: Feeding Efficiency and Economic Performance. University of Guelph.