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Management

Manage dairy employees, establish farm protocols, take on milk marketing, and become more confident in your farm financials.

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For dairy producers across the U.S., 2017 has the potential to be a year of growth and opportunity – but financial success hinges upon four key factors.

“The best time to grow is when everybody else is hunkered down,” Mike Boehlje, Purdue agriculture economics professor, told dairy producers at the 2017 PDPW Manager’s Academy held in San Diego, California, earlier this year.

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Benchmarking – comparing your operation against the performance of your peers and yourself over time – can identify ways to create dairy farm business efficiencies and increase profitability.

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The U.S. dairy industry is evolving, progressing from a commodity-driven producer of domestic products to a top three exporter of dairy ingredients. More attention is being placed on creation of value-added consumer goods and the proliferation of innovative, direct-sourcing models throughout the supply chain.

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Not only are dairymen interested in raising their own bull calves for the beef market, many are interested in expanding into a secondary, complementary beef enterprise on the dairy farm and are purchasing Holstein calves for this purpose.

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Precision agriculture innovation continues to provide farmers with improved technologies that are becoming more affordable. Precision dairy management provides a way to gather data that enables farmers to make immediate decisions based on real-time herd statistics.

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When it comes to managing profitability, it’s natural for dairy producers to focus on milk prices. But ignoring the expense side of the equation leaves you exposed to potential margin erosion. And when your margins are squeezed, your liquidity suffers, putting your cash flow at risk.

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