What is Income Over Feed Cost (IOFC)

Using lab results from your milk processor, Dairy Margin Tracker breaks your daily production down into gross pounds of milk, butterfat and protein. Daily income is the daily yield of each milk component multiplied by the published market price for the respective component.

Using daily feed costs from on-farm feed management software, Dairy Margin Tracker calculates a per-head per-day feed cost. This daily feed cost is then plotted against daily income to graph the IOFC margin.

Pounds of Butterfat, Protein and Other Solids
Their Respective Income Values
Feed Cost
Pounds of DMI
Cost per pound of dry matter

Why is IOFC Important?

We realized farms had a fear of "buying milk" – spending more on feed, but not netting more income.

By tracking and graphing IOFC, you can know how feed changes affect your bottom line.