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New Mexico | Start with 50k....perhaps ALL partnership equity...with the folks leasing the dairy and your friend.
When you REALLY learn to "pull teats" then perhaps think bigger.
Perhaps lease the deal on an inclined scale...pay by the cow...start with say 30 to 50 cows and work up from there.
Importantly...the small dairies have a much more appealing story that sells for more.
Keep in mind the agri meats, dairy etc operators that are producing and selling the more natural products have been "cleaning the consolidated companies clocks."
Traditional ( consolidated ) market share on the afore products is off 20% in the past 3 years...and the gain has been picked up by the natural type coops, marketing cos, producers thereof etc.
The natural niche milk folks still get 20 to 25 for their milk...reason? it's worth more. That simple.
It does not matter how many cows one milks....what matters is that they make some REAL money each.
Perhaps focus your deal on an "outside" grass or roughage base....thus you do not have to handle then feed the cows every darn thing they consume....cows eating the bulk of their ration "out" arguably produce less or more milk...but per unit feed and feeding costs drop by generally over 50% per cow.
Since your in Idaho....instead of messing with the western production permit system...just go natural and you won't have to beg ( or buy the permit ) anyone to let you produce milk then go broke producing for the consolidateds.
Natural type creameries in your area looking for producers are likely in Bend / Redmond OR, Roseburg, Portland, Seattle, Bellview etc....Lots of NICE builds in the forests etc of areas mentioned...the type of consumer who likely will pay UP for a healthier product.
Nice 3 year old cows in this part of the World....weighing 1,000 costing 40 cents.
Edited by Markwright 9/6/2009 17:24
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Starting a Dairy
