2. Profitable Dairy Farming
• The Profitable Dairy Farming is based
on well planned strategies, strong
leadership and strong teamwork.
• The key to profit in dairy farming is
always a combination of steps and in
making decisions and in taking actions
in the order of their relative
importance.
• Ten principles about how effective
management can contribute to
profitable dairy farming are discussed.
3. 1: Increase Production Per
Animal Per Day
• Start fine tuning of rations which include:
vration balancing
vration preparation, and
vnumber of feedings per day
• Once production levels increase, then cull low
producing or non-pregnant cows.
• Increases of 7-10 pounds of milk and 0.3 to 0.4%
fat can be achieved in this way.
4. 2: Improve Feed Intake
• There is an old saying ‘more feed in -
more milk out’.
• By improving forage percent of the diets
of animals from 60% to 80% a significant
monetary return can be seen increasing
profit.
5. 3: Enhance Reproduction
• Improve heat detection program by:
vStaff training
vObserving cows which are in 50 to 125
days in milk
• Group the cows according to their days in
milk
• Average days in milk can be reduced from 200
to less than 150.
• This will increase average liters of milk per
cow per day and will reduce number of days
in dry pens.
• Veterinarians or reproduction specialists
should be hired routinely.
6. 4: Expand Transition Cow Program
• It is every producer’s desire to have cows and heifers
transition from dry to milking with ease and without
problems.
• Arrange the cows in three groups:
vDry cows
vCows in mid lactation
vFresh cows
• When animals start to decline milk production dry
off them so that they can be used later.
7. 5: Focus on Finances
• Keep an eye and focus on finances every time.
• Monitor capital purchases.
• Try to reduce the cost and save money through
different practices:
vHaving crops custom harvested, thus saving
to invest in machinery.
vPurchasing feed inputs instead of growing
them, etc
8. 6: Rear Your Own Heifers
• Start heifer rearing program and rear the heifers born at the farm.
• The cost of purchasing animals can be saved.
• The surplus heifers can also be sold to the market making good profits.
• Rearing heifers will benefit in terms of less illness and calving up to three
months earlier.
9. 7: Enhance Animal
Environment
• Give the environment to the
animals that they like. They will give
you the production that you like.
• Animal comfort including both stall
design and cow cooling during hot
weather.
• Milk can be increased - More than 5
pounds per day
• Pregnancy rates can be improved.
10. 8: Improve Record
Keeping
• Farmers do not realize how important
good records are for being able to
improve profitability.
• Keep the records and link them with
finances.
• Maintain breeding, production and
feeding records as well.
• By linking all records to finances, you
will be very pleasantly surprised to see
the increased profit.
11. 9: Increase Labor
Efficiency
• Labor costs can range from 10 to
20% of total farm costs.
• Focus staff on caring for animals.
• If the farmer is personally able to
spend more time managing,
planning and spending time at farm,
labor will work more effectively
and more efficiently.
12. 10: Set Aside Time for
Planning
• Planning and goal setting help to
increase profits.
• One day in a month should be spent in
planning and goal setting.
13. Conclusions
• Of course every farm and farm manager operates differently. But in
all cases records and data are needed to make the best possible
decisions.
• These ten profit builder principles can be used as a guide for dairy
farm managers to use to set their priorities and make their plans.
14. Conclusions
• By attaching priorities and using these ten principles, a farmer or
manager will be able to “Significantly drive-up his revenue, keep
his costs under control and to enjoy a profitable dairy farming’.