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January class 3 milk
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dabeegmon
Posted 1/16/2019 11:07 (#7248901 - in reply to #7244492)
Subject: RE: Minn Gopher?


SE Manitoba
minn gopher - 1/14/2019 11:00

mikado - 1/14/2019 08:00

I’m interested in your take on this. From what you’ve said before it seemed you felt well positioned to ride this thing out. How are you hanging in? Can you say (or care to tell) what you feel gives you an advantage?

No ill feelings here, just genuinely interested in how someone can get thru this. I just see a lot of pain in my area but I’m very removed from what is actually going on in the dairy industry.



We are riding it out, but it sucks. 4+ years has been horrible. I’m not sure we are well positioned for this bad of a run, 400 cow dairy is a bad size. We lost using BST 18 months ago. That has taken income, we are still on the high end of production so that is big deal for cash flow. Lucky for our operation we have had fantastic crops 3 of those years, and we sell quite a bit of corn and soybeans. The future of dairy is big big dairys. I’m fine with that. The people who can manage that well, and do it have done very well for themselves. They deserve it because managing a dairy is bleeping hard.



I'm not sure its just being big that works.
I'm thinking is having your costs so that you can tick over, or even better - - - make a profit, when 85 to 90% of the dairies can't.
This means being real hard on your inputs, being ruthless on keeping labor hours as low as you can (not keeping wages down that means efficiency in feeding in milking in getting those girls bred . . . ).
It might also mean being careful on your equipment decisions - - - if you can run your tractors for 10% less than the norm - - - that's worth money etc etc.
All this stuff is what makes managing a dairy very hard - - - - as you said - - - but I think that you might be at a sweet spot. Much bigger and you need a lot of help.
At your size with trying to get things as optimized as possible you're going to have some of the lowest managerial costs - - - you will have only one level of management.
Any bigger and then you might as well get huge because now you have to make that second and more levels of management pay for themselves - - - - and that's really not easy!!!!
Just my $0.015 (too bleeping much inflation!!!!).
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