Feed represents the largest recurring cost in commercial livestock production. In Australian dairy, beef feedlot, and intensive monogastric systems, feed accounts for 40–70% of total production costs, depending on commodity prices and seasonal forage availability (Dairy Australia, 2023; MLA Feedbase Program, 2024).
Because feed costs determine profitability, effective feed management is not simply administrative—it is strategic.
Why Control Matters
| Key Factor | Impact on Production | Risk If Not Managed |
| Feed Inventory Accuracy | Ensures diets meet animal requirements | Overfeeding or underfeeding reduces margins and performance |
| Feed Wastage Control | Reduces shrink, theft, and weather losses | Costs increase 5–15% silently |
| Price Forecasting & Forward Contracts | Protects against volatile grain markets | Exposure to seasonal price spikes |
| Demand Forecasting | Aligns supply with herd or flock needs | Overstocking = cash flow pressure; understocking = lost production |
Australian farms are increasingly exposed to high feed-price volatility, driven by:
- Climate variability
- Regional drought cycles
- Global grain market dynamics
- Transportation & fuel costs in rural supply chains
Programs such as the Dairy Australia Feed Budgeting Toolkits and MLA’s Nutrition EDGE emphasize feed budgeting and rolling cost forecasts to maintain Income-Over-Feed-Cost (IOFC) stability across the year.
Practical Steps for Better Feed Cost Control
- Monthly feed budgets based on herd stage + expected production.
- Track DM intake, DM % of feed, and shrink losses.
- Run forward purchasing scenarios (1, 3, 6 months).
- Integrate feeding data into financial dashboards for decision-making.
This creates a predictable cost model, not a reactive one.