In our last post, we shared how feeding palm kernel (PKE) helps dairy farmers boost milk production and keep cows healthy and fill in with PKE if here is a pasture gap — but what does palm kernel dairy feed mean for the bigger picture?

Town people often wonder:

• Is it worth the cost?
  
• Is it sustainable?
  
• Should we be worried about the palm oil industry?
  

Let’s take a look at that — simply, and honestly.

 The Economics: How Feeding Palm Kernel Adds Up

Farming isn’t just milking cows. It’s managing costs, risks, and returns — often on tight margins.

Here’s why PKE makes financial sense for many grass-based dairy farmers:

1. Predictable Price, Predictable Feed

Grass is free, yes — but it’s not always reliable. Weather changes, drought hits, and suddenly milk drops.

PKE offers:

• Stable supply year-round
  
• Bulk pricing options
  
• Less seasonal panic-buying of expensive feeds
  

2. Better Milk = Better Payout

Many dairy payout systems pay more for milk solids (fat + protein), not just volume. PKE helps boost these, meaning:

 The same cow can earn more with better nutrition.

Even a small increase in solids over a whole herd for a full season adds up to thousands in extra income.

3. Less Feed Waste = Lower Costs

PKE stores well and is easy to mix. Compared to grass or maize silage or grains, there’s less waste, less labor, and less storage cost.

And less waste means less money thrown away.

 The Environmental Side: Is Palm Kernel Ethical?

Now for the elephant (or palm tree) in the room: Is using palm kernel good for the planet?

The Truth About PKE

Palm kernel expeller is a byproduct — the stuff left behind after palm oil is pressed. It’s not the main reason trees are cut down.

By feeding it to cows, farmers are:

• Using leftovers that would otherwise go to waste
  
• Reducing reliance on human-edible grains like wheat and corn
  
• Stretching nutrition from one crop across species and borders
  

In a way, it’s part of a waste-reducing, circular economy.

 Local vs Global

Yes, PKE is imported — which uses fuel. But:

• It replaces multiple other feeds that might need more land, water, or chemicals to grow locally
  
• It’s often shipped in large bulk loads, making the carbon footprint lower per kg
  

The key is balance and moderation. Most farmers don’t rely on it 100%. It’s a strategic supplement, not a crutch.

 Farmers Care About Sustainability Too

It’s easy to think of farms as just businesses — but most farmers live where they work. They drink the water, breathe the air, and raise kids on that land.

Using PKE wisely means:

• Keeping cows healthy without overgrazing pasture
  
• Reducing waste
  
• Producing more milk with fewer inputs
  

That’s smart farming. And that’s good for everyone.

 Final Thought: More Than a Feed Bag

Palm kernel isn’t magic. It’s not a shortcut. But when used thoughtfully, it helps farmers:

• Keep milk flowing
  
• Reduce waste
  
• Stay financially afloat
  
• And take care of their land
  

For city folks, the message is simple:
That splash of milk in your coffee or tea comes from more than just a cow.
It comes from a thousand little decisions — like what’s in the feed trough.

Learn more in our From Feed to Fridge blog post.

We recommend DairyNZ for more in dept information