Southern IA | size of the lactating herd and total quantity of milk shipped had no impact on profitability (expressed as net farm income per hundredweight (cwt) of energy-corrected milk
That is probably true, but if the profitability number/unit is low, you need to produce a lot more units to have a sustainable operation and cover all the infrastructure investment. That seems to be the issue now days. Once the investment is made, asset utilization needs to be maximized to get the best return on investment. Parlors and feeding equipment only operating 3 or 4 hours/day make for very expensive and under utilized assets. |
10 yr study on financial drivers in Dairy including herd size
