Archive for feed cost savings

Rethinking Dairy Feed: Michigan Farmers Turn High Oleic Soybeans into High Butterfat Profits.

“We saw butterfat jump in three days.” How Michigan farmers and MSU science turned soybeans into dairy profits.

EXECUTIVE SUMMARY: A simple feed change in Michigan is making big waves across the U.S. dairy industry. At Preston Farms, feeding high oleic soybeans—developed with support from Michigan State University (MSU)—boosted butterfat from 4.4% to 4.8% in under a week, while replacing costly palm fats and protein meals with a locally grown crop. The shift, based on extensive research by Dr. Adam Lock, saved the farm hundreds of thousands in inputs and lifted overall profits to more than $1 million per year. Early adopters are proving that this innovation doesn’t just add points of fat—it builds feed independence and sustainability into dairy rations. And as universities and producers nationwide study the results, one thing is clear: sometimes the next big leap for dairy is just a smarter way to feed the cows.

High Oleic Dairy Feed

Sometimes the biggest dairy innovations don’t come from a lab or a boardroom—they start right in the feed bunk. That’s what’s happening at Preston Farms in Quincy, Michigan, where a simple change to the ration is improving butterfat performance, cutting feed costs, and rewriting the farm’s milk check.

Brian Preston didn’t set out to pioneer something revolutionary. But his decision to feed high-oleic soybeans, a crop once bred for frying oil rather than feed, has become one of the most quietly disruptive stories in dairying today.

From University Research to On-Farm Success

This breakthrough isn’t luck. It’s the product of years of research at Michigan State University (MSU) led by Dr. Adam Lock, Professor of Dairy Nutrition, whose focus has long been on how different fats affect rumen function and milk composition.

“We didn’t increase the fat level in the ration,” Lock explains. “We changed the kind of fat—and that changed everything.”

It’s Not Magic—It’s Biochemistry: Conventional soybeans trigger a biochemical cascade that blocks milk fat synthesis through trans-10 CLA formation. High oleic soybeans bypass the problem entirely—oleic acid moves straight through the rumen to the mammary gland. Same fat amount, completely different metabolic pathway.

Traditional soybeans are loaded with linoleic acid, a polyunsaturated fat known to interfere with rumen microbes and cause milk fat depression. High oleic soybeans, however, reverse that chemical balance. They contain 75–80% oleic acid and under 10% linoleic acid, according to USDA and Pioneer® data (2024). That single change stabilizes rumen fermentation and boosts acetate, an essential precursor to milk fat synthesis.

The Chemistry That Changes Everything: High oleic soybeans flip the fatty acid profile from 63% problematic linoleic acid to 75% beneficial oleic acid—a complete reversal that protects rumen function and boosts butterfat. This isn’t incremental improvement; it’s biochemical transformation.

The result? Cows can handle higher inclusion without the digestive disruption that once scared off nutritionists from pushing soy-based feeds too hard.

For Lock, the findings weren’t theoretical—they were replicated across multiple MSU feeding trials, later published in the Journal of Dairy Science (2023). And in Preston’s case, it worked exactly as the data suggested.

How Fast Did It Work? Try 72 Hours

In 2024, Preston planted 400 acres of Pioneer® Plenish® high oleic soybeans and began feeding them roasted—about 8 pounds per cow per day—in place of purchased soybean meal, canola meal, and expensive palm-based fats.

Within three days, milk tests came back with an unexpected jump: butterfat up from 4.4% to 4.8%, with milk protein slightly higher too.

Faster Than You Think: Butterfat jumped from 4.4% to 4.8% in just 72 hours—so fast Preston thought the lab made a mistake. The response stays consistent because oleic acid bypasses rumen hydrogenation. No lag time. No adaptation period. Just immediate biochemical efficiency.

“I honestly thought there was a lab error,” Preston laughs. “But it happened again the next week. The cows handled it so well, we kept it in full-time.”

Lock says that kind of immediate response makes sense because oleic acid bypasses much of the rumen’s hydrogenation process, entering the bloodstream faster as an energy source for milk synthesis. Cows use it directly—no lag time, no rumen stress.

That faster conversion means farms see the payoff quickly. As any producer knows, immediate improvements in component yield help confidence spread far faster than any spreadsheet could.

The Economics: Turning Fat into Feed Efficiency

When you quantify it, the economic implications are eye-opening.

Every 0.1 increase in butterfat adds roughly $0.20 per cwt when butterfat sells near $3.23/lb (USDA Agricultural Marketing Service, October 2025). Preston’s 0.4-point jump produced about $1 per cow per day, adding roughly $380,000 annually in butterfat premiums across his 1,000-cow herd.

Then came the ingredient savings.

Tack on feed savings—achieved by replacing high-cost supplements like palm-derived fats and purchased proteinswith roasted soybeans grown right on the farm—and the total improvement exceeded $1 million annually.

The Math That Matters: Preston Farms turned 400 acres of high oleic soybeans into over $1 million in annual gains—$380K from higher butterfat, $320K in feed cost savings, and $300K from improved efficiency. It’s rare to find a ration change that pays on both ends. This one does.

“It’s rare to find a single ration change that pays on both ends,” Preston says. “Usually you’re spending to gain production, or cutting cost and losing quality. This time, the cows—and the feed bill—both lined up.”

The Economics Work for Every Herd Size

Size Doesn’t Matter—Consistency Does: The economics scale perfectly from $36,500 for a 100-cow herd to $730,000 for 2,000 cows. Every single cow adds $365/year. No economies of scale required, no threshold to cross—just consistent, predictable, bankable per-head gains.

Why Michigan Is Ahead of the Curve

Michigan’s adoption of this feeding system stems largely from timing and teamwork.

Dr. Lock’s program at MSU, supported by the Michigan Alliance for Animal Agriculture (M-AAA), has spent over a decade translating lipid metabolism science into field-tested protocols. That partnership between the university and producer accelerated on-farm implementation and helped local nutritionists understand how to balance rations for these new soybeans.

“Michigan farmers had years of data before they took the plunge,” Lock says. “That’s what builds trust.”

In contrast, neighboring Wisconsin—the second-largest milk producer in the U.S.—has moved more cautiously. Nutritionists there often wait for validation from the University of Wisconsin-Madison Dairy Science Department, which is currently planning its first high oleic feeding trials for 2026.

It’s understandable. As Lock puts it, “Dairy nutritionists are trained to be risk-averse. When you’ve got millions of pounds of milk at stake, you confirm every feed trend before you move.”

The GMO Conversation: What Farmers Should Know

One of the first questions producers ask is whether the GMO status of these soybeans affects milk markets. The short answer: no.

Under the USDA’s National Bioengineered Food Disclosure Standard (2016), milk or meat from animals fed genetically modified feed is not considered genetically modified because the feed’s DNA does not transfer into milk or meat. After almost a decade of data, no studies—including those conducted by the FDA—have found detectable transference from feed to product.

For non-GMO or organic dairies, the alternative is the Soyleic® variety, developed at the University of Missouri, which achieves nearly identical oleic acid levels through conventional plant breeding. Those beans have done particularly well in identity-preserved markets, though they yield about 5–10% less per acre.

Long-term, both versions show strong potential for dairies seeking greater feed self-sufficiency.

How Many Farms Are Doing This?

METRICCURRENT STATUSOPPORTUNITY/NEEDEDTHE GAP
Dairy Cows on HOS Diet<1% (75,000 cows)20% (1.8M cows)1.725M cow opportunity
Nutritionists Recommending20% (160/800)80% for mass adoption480 nutritionists needed
Roasting Infrastructure~75 units1,500+ units1,425+ units required

Nationally, adoption remains low — about 70,000 to 80,000 cows on high oleic soybean diets, according to MSU Extension estimates (2025). That’s less than 1% of the total U.S. dairy herd.

The bottleneck isn’t supply — seed production can easily scale — but rather processing. On-farm roasting is still critical for unlocking feed value, and each roaster typically serves about 1,000 cows daily. Expanding adoption to even 20% of U.S. cows would require more than 1,500 new roasting units.

Some co-ops, especially across the Midwest, are exploring shared roasting programs in which individual farms deliver beans for contract processing.

There’s also a knowledge gap. Only about 20% of the nation’s 800 dairy nutritionists actively recommend high oleic soybean feeding programs (Great Lakes Dairy Nutrition Conference Survey, 2025). Many say they’re waiting for state-level replication trials before updating formulations.

It’s the same cycle seen with bypass proteins in the 1990s—slow at first, then exponential once the local data confirms early wins.

What Cows and Numbers Are Saying So Far

After a full year of feeding high-oleic soybeans, Preston’s herd metrics are stable. Milk yield remains consistent. Reproductive performance—often the first red flag for new fats—has held steady.

Lock’s ongoing work at MSU mirrors those findings, showing no significant difference in ketosis, displaced abomasum, or other metabolic measures compared with control groups. The focus now shifts to multi-year monitoring.

“We’re confident in the short-term biology,” Lock says. “Now it’s about proving sustainability year after year.”

For producers, that’s comforting. As most know, herd-level consistency decides whether an innovation stays or fades.

Practical Starting Points

For producers curious about testing the concept, the learning curve is short and management-friendly:

  • Start small: Try 50–100 acres and dedicate one group of cows for trial feeding.
  • Roast right: Keep roasting temps between 280–300°F for optimal protein availability.
  • Track diligently: Monitor butterfat, dry matter intake, and conception rates over multiple months.
  • Work closely with nutritionists: Fine-tune diets to prevent unbalanced fat inclusion.
  • Run the ROI: Compare component-based milk revenue with any feed cost shifts.

Early adopters like Preston insist on treating the transition as a management system, not a silver bullet. “We made sure every change was measurable,” he says. “Then we let the data drive whether we stayed with it.”

What’s Interesting About This Development

Three things stand out. First, it highlights how small biological improvements can have huge economic consequenceswhen component pricing drives profitability. Second, it reconnects modern dairying with something age-old: growing and processing one’s own feed to reduce dependency on volatile markets. And third, it demonstrates how collaboration between land-grant universities and farmers creates innovation grounded in real-world application, not lab theory.

“We’ve had feed additives come and go,” Preston says. “This one is different—it’s ours to grow, feed, and control.”

The Bottom Line

For all the advanced technology shaping the dairy world today, sometimes innovation looks as familiar as a roasted soybean.

High oleic feeding strategies may not transform the industry overnight, but evidence from Michigan’s early adopters shows real, sustained improvements in butterfat performance, feed efficiency, and economic stability. The concept works because it fits seamlessly into existing farm systems—it’s scalable, measurable, and backed by solid science.

If the next several years of data across Wisconsin, New York, and beyond confirm what MSU has already seen, this may very well be the next “quiet revolution” in feed efficiency.

As one producer joked after hearing Preston’s story: “The cows might be the best university research partners we’ve ever had.”

Key Takeaways

  • A quiet revolution in cow nutrition is underway: high oleic soybeans are raising butterfat and replacing expensive palm fats in dairy rations.
  • Preston Farms and MSU researchers demonstrated the impact—a 0.4-point increase in fat and more than $1 million in annual gains from feed efficiency and component premiums.
  • Dr. Adam Lock’s studies confirm that oleic-rich fats improve rumen stability and milk components more quickly than traditional rations.
  • Nationwide growth depends on expanding roasting infrastructure, education, and replicable regional trials.
  • For forward-thinking producers, this strategy offers a real-world, on-farm route to feed self-sufficiency, profitability, and sustainable dairy progress.

Complete references and supporting documentation are available upon request by contacting the editorial team at editor@thebullvine.com.

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Whey Market Rollercoaster: What Rising Protein Demand Means for Dairy Farmers

Whey prices hit a rollercoaster in 2024, leaving dairy farmers scrambling. With dry whey stocks rebounding 9.3% in December and WPI demand soaring, what’s a producer to do? Dive into our analysis of protein premiums, feed cost opportunities, and five strategies to boost your bottom line in 2025’s volatile market.

Summary:

The U.S. dairy industry is experiencing a whey market paradox, with record-high demand for premium whey protein isolates (WPI) colliding with volatile dry whey prices and surging inventories. In 2024, WPI production hit near-record levels, driven by fitness and medical nutrition sectors, while dry whey stocks rebounded 9.3% in December after an 11-year low. This shift is reshaping milk component premiums, feed costs, and overall farm economics. Dairy farmers face challenges in balancing protein optimization with managing excess whey streams, as cheese production fluctuates and processors prioritize high-margin WPI. To navigate this complex landscape, producers are advised to focus on component testing, explore whey permeate partnerships, utilize futures contracts, invest in manure-to-energy solutions, and improve cow comfort for optimal protein yields. With all-milk prices projected at $22.75/cwt for 2025 and potential feed cost savings of 8-10%, agile farmers who can maximize components while minimizing waste stand to thrive in this evolving market.

Key Takeaways:

  • WPI demand is soaring, with June 2024 production reaching 16.2M lbs, the second-highest monthly total ever.
  • Dry whey inventories rebounded 9.3% in December 2024 after hitting an 11-year low in November.
  • Farms averaging >3.5% milk protein earned $0.45/cwt extra in 2024.
  • Cheese production dropped 4.1% YoY in November 2024, impacting Class III milk checks.
  • Whey permeate can potentially save farmers $45/ton compared to soybean meal in feed costs.
  • All-Milk Price forecast: $22.75/cwt for 2025, down slightly from $23.05/cwt in 2024.
  • Feed costs are projected to decrease 8-10% in 2025.
  • Five key strategies for farmers: component testing, whey-perm partnerships, futures hedging, manure-to-energy conversion, and cow comfort upgrades.
  • The U.S. dairy herd is projected at 9.335M head for 2025, with an average yield of 24,200 lbs/cow.
  • Success in 2025 will depend on maximizing milk components, minimizing waste, and effective price risk management.
whey prices, dairy farmers, protein premiums, feed cost savings, WPI demand

U.S. dairy farmers face whiplash as demand for premium whey proteins collides with volatile powder markets and shrinking milk margins. New USDA data reveals dry whey prices hit $0.625/lb in June 2024 – a 5-year high – even as cheese plants flood the market with excess whey streams. Here’s how producers can navigate this protein paradox. 

The High-Protein Gold Rush 

June 2024 saw Whey Protein Isolate (WPI) output reach 16.2 million lbs – the second-highest monthly total – while inventories fell 9% year-over-year. This “make-it-and-take-it” demand from fitness and medical nutrition sectors has processors scrambling: 

“Every lb of milk protein diverted to WPI means less cheese available, ” says HighGround Dairy analyst Lucas Fuentes. “But with WPI margins 3× higher than dry whey, farmers need cows that can deliver both volume and components.”

On-Farm Implications 

  • Component premiums: Farms averaging >3.5% milk protein earned $0.45/cwt extra in 2024.
  • SNF challenges: For every 1 million lbs of WPI produced, 6.5 million lbs of lactose/byproducts hit the market.

Cheese-Whey Whiplash 

MetricNov 2024Change YoYFarmer Impact
Cheese Production33m lb drop-4.1%Lower Class III milk checks
Dry Whey Output69m lbs-4.9%Reduced Whey Revenue Streams
WPC34 Stocks17m lbs-53% from 2023Tightening Feed-Grade Supplies
Source: USDA February 2025 Report

Despite cheese output dropping to 1.2 billion lbs in December 2024 (-0.7% YoY), liquid whey supplies grew 4% MoM as processors prioritized butter production. This glut pushed December dry whey stocks to 47.7 million lbs – up 9.3% from November’s 11-year low. 

Price Swings Hit Feed Costs 

With the $0.15/lb feed opportunity with dry whey prices forecast at $0.475/lb for 2024, farmers using whey permeate in rations could save: 

  • $45/ton vs. soybean meal (current SBM: $450/ton)
  • 12% lower feed costs vs. 2023 levels

“Every 10% substitution of whey permeate for SBM adds $0.08/cwt to margins,” calculates USDA nutritionist Dr. Amy Wu. “But test batches first – high lactose content can disrupt rumen pH.”

Milk Check Math in the Protein Era 

Metric20242025 (Projected)
All-Milk Price$23.05/cwt$22.75/cwt
Class III Price$19.45/cwt$18.90/cwt
Feed Cost Savings4-6%8-10%
Sources: WASDE, NASS

Dairy economist Gary Schnitkey warns, “With feed costs consuming 65-70% of revenues, the farms that will survive will be those locking in both milk and whey futures while optimizing for components.”

5 Actionable Strategies 

  1. Component testing – Work with labs to identify cows with >3.5% protein yields – Cull bottom 10% performers (saves $1.27/cwt in feed)
  2. Whey-perm partnerships – Partner with feedlots to secure $45-55/ton whey permeate deals – Example: Brenneman Dairy (OH) cut feed costs 11% via 15% whey substitution
  3. Futures floor – Hedge 40% of Q3 2025 whey output at $0.475-0.50/lb via CME
  4. Manure-to-Whey – New digesters convert 1 ton manure → 1.2m BTU + fertilizer credits – 500-cow farms can offset $0.15/cwt whey price risk
  5. Cow comfort upgrades – Fans/misters improving THI <72 can boost milk protein 0.2%

The Road Ahead 

While 2025 brings challenges—a 9.335 million head herd (—5k from 2024) and 24,200 lbs/cow yield (-30 lbs)—opportunities abound for agile producers. As Fuentes concludes: 

“The dairy divide isn’t big vs. small – quick vs. stuck. Whether running 50 or 5,000 cows, the rules are the same: maximize components, minimize waste, and always lock in your floors.”

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