Recently, a prospective customer asked me what mineral costs per head per day would be on our program. He explained that his current cost was about $0.25. My first reaction was to say that this is right in line with the ANC program, but there is a lot more to it than that. His question was a better one than most, as many ask the cost per ton or the cost per month instead. Many major feed competitors falsely try to use cost of mineral or premix as the cost of a program. Wouldn't protein and grain recommendations greatly affect cost? What about the recommendations for certain feed ingredients? How much time do they spend on showing you how to use what you buy?

Here are some factors to consider when the next competitor wants to sell you their program based on mineral costs.

Are they making a fair comparison? Are calcium, phosphorus, magnesium, vitamins, and trace minerals at comparable levels? Are trace minerals sulfates, oxides, carbonates, proteinated, chelated or sequestered? Remember, cost reduction can be due to reduced fortification to some extent. Are there other additives in the mineral mix such as buffers, yeast, or microbials? Your production level and herd health goals will help determine what levels of these nutrients and ingredients are needed. Sometimes more is not better. For example, high iron levels in premixes can contribute to breeding problems!

Do you know the levels of vitamins supplied? Most companies will supply you with levels of major vitamins such as A, D & E. I see many competitive rations that assume certain vitamin levels from forages, grains or commodities. These do not count, as levels could be average to very low, and may be nonexistent. In any case, you want to know what vitamin fortification you are purchasing. Levels of vitamins probably won't vary the cost of your mineral mix by more than 50% of its total cost.

What level of production or dry matter is the ration balanced for? Higher balance points require greater fortification. One trick for cost is to lower these levels. On the other hand, balancing for unrealistic levels is a waste of money. Also, feed tests that report high calcium, phosphorus, and magnesium levels may make your ration appear to have higher levels of these minerals, but are the tests accurate?

Is a portion of the minerals and vitamins supplied through your protein or supplement blends? If this is the case, the cost per head per day of any extra mineral will be less, but could vary greatly with the amount of supplement or protein fed. In many TMR situations, a supplement is blended that includes the vitamins and minerals, so you do not have a specific mineral price. In this case the competitor will figure out how to make your supplement less costly on a per ton basis, and may not make it clear that the tons you buy may go up!

How is your service priced and what is it really worth? Most feed mills and major companies use a percentage margin per ton on finished feeds, which includes enough for basic services. If more service becomes necessary, some additional cost is probably included in what you purchase. Some consultants or firms charge an additional fee to cover service. With ANC and many other companies, the fee is figured in the vitamin or premix ingredients you buy. Regardless of how it is paid, service is very important. Timely and accurate rations are critical to your herds success and profitability. Having another individual look at the cows and help solve problems is a big plus. Many times cost cutting measures also reduce service. This usually results in a reduction of profit!

For example, ANC hires out someone to do their printing, product blending, laboratory analysis, and much of the trucking. We could save a little money by assembling our computers from components, or even changing the oil ourselves in the company truck. Tasks must be weighed on a basis of what we like to do, what we are good at, and what our time is worth. Is three, five, or ten cents per cow a day worth the additional hours you might spend even if you could "service" yourself? Are there more enjoyable and profitable things you could be doing? How do you replace that extra set of eyes looking things over?

How about keeping better breeding records, accounting records, or raising extra heifers to sell? If you have the facilities and feed, the additional cost to milk one more cow may be minimal, and an extra 20,000 pounds of milk sold adds up to about $2,400! The old adage, "Penny Wise and Dollar Foolish", still applies to all businesses. Wise management of any business has more to do with profit than any single item. Better managers employ the help and skills of individuals and programs that will show them the greatest return for their dollar.

I think any of us would jump at the chance to make a dollar for every 80 cents we spend, yet many businesses fail to make the investment and commitment necessary to maximize profit. Talk to your ANC consultant for a way to help you increase production and herd health through the sound application of feeding principles, feed testing, ration balancing, and sound service!