2009 showed some of the poorest earnings in decades for northeast dairies, according to data collected from Dairy Benchmark and DPA. Knowing how your farm is doing on a timely basis allows you to make timely decisions and implement an action plan that will work for the success of your operation. The healthiest margin herds (net margin/cwt) showed a healthy balance in 5 key areas:
The 5 Key Contributing Factors to Profitability:
- Volume of sales. Influenced by milk production, components, and premiums.
- Efficiency at which they acheive those sales.
- The degree at which they run at full capacity.
- Growth achieved in their business.
- Overall cost control.