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The Business Side of Large Herd Management in the East

Dairy Farmer, Glastonbury, Connecticut

ABSTRACT

The profit motive is the basic goal in the management of the large dairy business in the Northeast. To realize this goal each business should have a production plan.

Four basic objectives should be kept in mind when making a production plan. These are: 1) the highest level of production per man employed, 2) profitable volume of production per productive unit, 3) the lowest possible capital investment per cow, and 4) a proper margin of net return.

The production plan guides the manager to maximum profit. This plan should include the following guidelines: a breeding program that assures a high first service conception rate and an obtainable twelve-month calving interval, a herd size that exploits the fixed resources of land, labor, capital, and the managerial ability of the operator. A feeding program that meets the daily herd requirements with respect to energy, protein, and minerals to fully utilize the inherent productive potential of the herd. The use of facilities that assure low capital investment and efficiency of production, such as free stall loose housing, milking parlor, and bunker silos for storage of corn silage. The use of a financial record-keeping system and tools such as linear programming, to help the manager develop a meaningful and integrated production plan.

The forces of the nonagricultural sector—urban expansion, a tight labor market, and lack of additional land for agricultural purposes—make a production plan absolutely necessary if the large herd manager is going to achieve the ultimate goal of profit.