The difference between feed efficiency and production efficiency of dairy cows
Feed efficiency measures biological output of dairy cattle, the amount of energy-corrected milk per kg of feed consumed. It is calculated by dividing the amount of energy-corrected milk (ECM) by the dry matter intake (DMI). Sometimes the diet that has the highest feed efficiency is also more profitable, but this is not always the case. Production efficiency looks at the biological output per amount of money spent on feed. Production efficiency of dairy cows is sensitive to both changes in feed efficiency and changes in ingredient costs. It is therefore more predictive of dairy farm profitability than feed efficiency.