Critical Success Factors in a Competitive Dairy Market

¹ Department of Agricultural Economics, Purdue University, 1145 Krannert, West Lafayette, IN 47907-1145
² Dairy Institute of California, 1127 11th Street, Suite 718, Sacramento 95814

Dramatic changes are occurring in production agriculture, particularly in livestock production. In this rapidly changing and increasingly competitive environment, successful production units utilize and embrace modern manufacturing concepts and principles to improve their competitive position and increase their efficiency and productivity. These concepts have not replaced the well-recognized concepts of commodity production that were used in the past, such as an emphasis on cost control through a combination of increased size, improved efficiency, and adoption of the latest technology in all phases of the production process. However, the traditional techniques of obtaining efficiency, reducing cost, and increasing margins are no longer sufficient to ensure successful agricultural production. The manufacturing concepts discussed in this paper suggest additional strategies that are necessary for success in modern agricultural production.

Key Words: industrialization • manufacturing • integrated systems • success factors

Submitted on July 15, 1996
Accepted on January 26, 1998