A case study of the economic impact of utilizing Micro Technologies’ Micro-Weigh Micro Ingredient Delivery System and Pro-Control Plus Feed Batching System in a dairy feed mill

Abstract

Micro Technologies is a technology company that innovates cattle feeding operation systems and solutions. Their goal is to offer “advanced, comprehensive and integrated animal management solutions that empower food producers to grow safe, wholesome food supply more efficiently and profitably” (Micro Technologies AmerisourceBergen 2024). Micro Technologies Micro-Weigh Micro Ingredient Delivery System is a machine that precision-weighs micronutrient ingredients and sprays them onto feed rations to create a ration with consistent micronutrient content. The Pro-Control Plus Feed Batching system is a computer system installed into dairy feed mills that is designed to make feed ration manufacturing more streamline, help manage macro ingredients, customize diets, consistently mix micro ingredients, and reduce batching time. Utilizing the two systems together offers dairy producers a more streamlined process with more consistent feed rations, and better operational conditions when compared to utilizing a mineral pre-mix. The objective of this project is to explore the integration of Micro Technologies’ Micro-Weigh and Pro-Control systems and their impact on feed and operation costs. Integrated into the project is the design of a decision tool that may be used by the Micro Technologies sales team to help a diary producer understand the costs and values of using these systems. This will be done through partial budgeting where we look at costs and values of the implementation of these systems. The paper will evaluate the difference in ration costs on a per head per day basis and analyze reductions and eliminations of other costs due to this change. When using Micro Technologies’ systems, micronutrients are purchased as packaged products from Micro Technologies, are stored indoors, and are directly administered through micro equipment. Because Micro Technologies does not charge customers for the use of this equipment, those expenses are realized through slightly higher costs of micronutrients compared to the cost of using a mineral pre-mix in the feed. However, there is value found in reduction of loss through elimination of shrink from the pre-mix and reduction of feed mill operation time which outweighs the additional costs of micronutrients. This paper will explore those costs and the value that comes from the Micro-Weigh and Pro Control systems.