Feed is consistently one of the biggest costs on livestock farms. For many UK dairy units, purchased feed makes up 30–40% of total milk production costs, while in beef systems, feed and forage can account for more than half of variable costs. That means movements in global markets quickly affect farm profitability.
With margins already under pressure from rising energy, fertiliser, and labour costs, it has never been more important to understand what is driving feed prices and how you can respond on farm.
The current picture
Recently we have seen soya prices rise on the Chicago futures market. This is driven by the market reacting to news of positive noises coming from US-China trade talks and so expectations of China resuming US soyabean purchases.
This expected extra demand comes at a time when oil prices have rallied sharply on the back of US sanctions of Russian oil companies.
But will this rally continue? Whilst we have seen soya price rise in the past month, the outlook may curb this rally. In Brazil, farmers are planting the new crop and with planting 22% complete by mid-October there are no concerns at this stage.
The US Dept. Of Agriculture forecasts a Brazilian soyabean crop of 175 million tonnes, increasing by 6 million tonnes from the previous season. With this crop due to be harvested in early 2026, we may see prices start to erode, or at least not move higher, as the supply pressure builds.
On the grain side, everything is calm. Large wheat crops from Russia, Europe and Australia are keep wheat markets bearish. Whilst a significant maize crop from the US keeps global markets under pressure.
Whilst we have seen a short-term rally in protein, the base fundamentals of the market for grains and oilseeds are for comfortable supply.
But this doesn’t mean we should be complacent on feed costs!
Why this matters on farm
Any increase in feed costs has a direct impact on cost of production. But the effects are not just financial, ration balance, cow health, and environmental performance are also at stake.
- Financial: Even a small rise in protein costs can add several pence per litre to milk production costs. For beef finishers, higher purchased feed bills reduce margins per kilo of liveweight gain.
- Nutritional: Cutting back on protein without balancing energy and fibre can compromise milk yield, growth rates, and fertility.
- Sustainability: Imported protein carries a higher carbon footprint. Rising costs increase the incentive to explore alternatives and make better use of homegrown feeds.
What farmers can do in response
While no one can control global commodity markets, there are practical steps every farm can take to reduce exposure and make feed go further.
1. Maximise the value of forage
Good-quality forage is the cheapest feed available. A well-managed silage clamp can save thousands of pounds compared to relying on purchased feeds.
- Carry out regular forage analysis so rations are based on actual nutrient values.
- Focus on clamp management to minimise spoilage. Seal clamps properly, remove silage evenly, and avoid secondary fermentation.
- Target milk from forage as a key performance indicator.
2. Balance rations carefully
When protein prices rise, getting the energy-to-protein ratio right is more important than ever.
- Avoid overfeeding protein, this increases costs without delivering yield benefits.
- Ensure enough effective fibre is present to maintain rumen health and avoid acidosis.
- Work with a nutritionist to model different ration scenarios. Small changes can reduce reliance on purchased protein without affecting performance.
3. Minimise feed waste
Wasted feed is wasted money. Losses often occur before feed even reaches the cow.
- At the clamp: keep faces tight, use shear grabs, and avoid leaving loose silage exposed.
- During mixing: ensure mixer wagons are calibrated so ingredients are accurate.
- At the feed barrier: push up feed regularly, avoid overfilling, and maintain clean troughs.
Even a 5% reduction in feed waste can save significant costs across a winter.
4. Explore alternative protein sources
Rising soya and rapemeal prices increase the value of alternative protein feeds. Options such as distillers’ grains, beans, or lupins can sometimes provide cost-effective substitutes.
However, availability, storage, and ration balance must be considered carefully. Not all alternatives will suit every system.
5. Monitor cow performance closely
Regularly track milk yield, butterfat, protein, body condition score, and feed conversion efficiency. If performance dips, it may be more cost-effective to adjust the ration than to simply increase purchased feed.
Promar’s role in feed cost management
At Promar, we work with farmers across the UK to translate market trends into practical on-farm actions. Our consultancy support includes:
- Forage testing and analysis to identify the true value of homegrown feeds.
- Ration planning tailored to herd requirements, forage stocks, and milk contracts.
- Feed efficiency benchmarking to compare performance and highlight savings.
- Alternative feed strategies that reduce reliance on volatile imported proteins.
- Sustainability advice on reducing carbon footprint while protecting margins.
By combining market knowledge with farm-level data, we help farmers make feed decisions that support both profitability and long-term resilience.
Feed costs will always fluctuate, but with the right planning, efficiency, and support, their impact on farm profitability can be managed. The current rise in protein prices underlines the importance of maximising forage, balancing rations effectively, and reducing waste.
Promar International can help you understand what’s driving your feed costs and build a strategy that works for your business.
Get in touch with our consultants today to discuss your feed planning for the months ahead, call us today on 01270 616800.
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