Case study: How automation and advanced batching systems improve efficiency and reduce costs

As dairy producers know, every minute and every dollar matter. From managing feed costs to minimizing labor demands, successful operations are built on streamlined processes and accurate execution. At one dairy, the introduction of MWI’s feed management system that includes the Micro Ingredient Delivery System and the Pro-Control Plus Feed Batching System provided a clear path to lower total costs while ensuring consistent feed quality and production standards.

This case study explores how these innovative feed management solutions addressed key operational challenges and delivered measurable results in cost savings, labor efficiency, and feeding accuracy at this high-performing, 8500-head dairy operation in New Mexico.

Challenges: Fluctuating costs and operational pressure

For many dairy farms, the drive to optimize feed management is driven by pressures that go beyond ingredient costs. Fluctuating markets, labor shortages, and the demand for transparency in agricultural practices make it increasingly challenging to maintain profitability. Our research identified four critical challenges that farms commonly face:

1. Feed cost variability. Feed represents more than half of the total production costs on most dairy farms, making it the single largest expense. When ingredient prices fluctuate, inefficiencies in feed utilization only worsen the financial strain, eroding margins, and threatening long-term profitability. When taken together, Micro ingredients cost an average of $172.65 per pound of feed.
2. Labor inefficiencies. Manual feed batching and delivery not only take up valuable time but are also prone to human error. Farms relying on manual processes often experience higher labor costs and longer feeding times, which can further compound staffing challenges.
3. Feeding inaccuracies. Consistency in feed delivery is essential to herd health and productivity. Manual systems often result in discrepancies between formulated and delivered rations, leading to overfeeding, underfeeding, or waste. These inaccuracies not only drive up costs but can also negatively affect milk yield and overall herd performance.
4. Equipment downtime and maintenance. For farms operating on tight margins, outdated or poorly maintained equipment can lead to frequent breakdowns, disrupting feeding schedules and increasing labor demands. Such disruptions pose both operational and financial risks.

Clearly, there’s a need for solutions that address the entire feed process—from ingredient delivery to ration preparation and distribution.

Action: Strategic automation drives efficiency

To address these critical operational challenges, the Arizona dairy turned to advanced feed management technologies: the Micro Ingredient Delivery System and the Pro-Control Plus Feed Batching System. These systems were introduced to streamline operations, improve precision, and reduce total costs.

Feeding additives that boost performance such as cattle growth, milk yield, milk component yield, feed efficiency, and cattle health, is an essential aspect of a successful dairy operation. Our technologies support the dairy’s capabilities to test increases or decreases of micronutrients for specific groups. The dairy producers were able to adjust micronutrient levels instantly based on changing needs.

The Micro Ingredient Delivery System automates the weighing and mixing of micro-ingredients, such as vitamins, minerals, and additives. By eliminating manual measurements, it reduces labor requirements and minimizes errors. Automating this process ensures precise nutrient delivery in every batch, which helps farms reduce ingredient waste while maintaining feed consistency.

The Pro-Control Plus Feed Batching System simplifies the entire feed batching process by consolidating ingredient measurements and mixing into a single, efficient workflow. This system integrates seamlessly with feeding equipment, enabling dairy producers to save time and labor while improving ration accuracy.

Proper training and planning were critical to the successful adoption of these systems. Staff received hands-on training to ensure a smooth transition from manual to automated processes. Regular maintenance and calibration schedules were also established to maximize the long-term benefits of the systems.

A more correctly mixed feed ration can support herd performance in the following ways:

1. Eliminating under or over feeding of critical nutrients. If a ration has too little of a single feed additive, the benefits of that additive will likely not be realized. On the other hand, too much of a particular feed additive can have adverse effects on animal performance.
2. Reducing feed waste and supporting more precise nutrient delivery. Traditional pre-mix systems may incur complications with ingredient delivery. Minerals can settle during transportation, resulting in less consistent feed and lighter ingredients can rise to the top, and be more vulnerable to the wind.
3. Customizing rations for different stages of milk production. Proper diet formulation requires meeting specific nutrient needs for water, protein, carbohydrates, fats, minerals, and vitamins. Such needs evolve as the cows move through their production cycles.
4. Delivering the micronutrients more consistently. If a dairy purchases through Micro Technologies, ingredients are delivered as packaged products and weighed precisely to the volume needed in the ration, eliminating shrinkage from over-loading.

Results: Efficiency gains across the board

The results of implementing the Micro Ingredient Delivery System and Pro-Control Plus Feed Batching System were clear. The Arizona dairy saw measurable improvements in labor efficiency, feed costs, and equipment reliability.  The savings realized dairy described in the case study came from time value only. For other dairy operations, it is possible to save additional time when adopting these technologies. Some, for instance, may save two hours. It all depends on what their current processes look like.

1. Labor efficiency.  Installing the Micro Technologies systems saved about two minutes in run time per batch of feed. With the mill producing twenty-seven batches a day, this added up to fifty-four minutes of operation time saved daily, allowing employees to focus on other critical tasks, boosting productivity across the operation. The dairy manager estimates operating costs at around $500 per hour. Adopting these system cuts costs by approximately $450 per day.
2. Lower total feed costs. By reducing ingredient waste and improving nutrient delivery accuracy, the Arizona dairy saved an estimated $225.34 per day on feed costs. Over a year, this represents more than $82,000 in savings, achieved primarily by reducing shrinkage associated with traditional pre-mix methods.
3. Fewer equipment disruptions. Automated systems significantly reduced downtime and streamlined maintenance. Routine maintenance schedules built into the systems ensured long-term reliability and fewer disruptions to feeding schedules.

For dairy producers, the value of MWI’s feed management system that includes the Micro Ingredient Delivery System and Pro-Control Plus Feed Batching System goes beyond cost savings. Investing in feed management technology positions farms to thrive in a competitive market while delivering measurable results.