Cows, cows, everywhere! Where are we going to put “friendly” #2882 now that she is finally pregnant? So the herdsman informed me.

Is this a problem on your dairy? Do you look around and see lots of cows chewing their cud contentedly in the freestall barn? Do you also see lots of cows standing around because the “No Vacancy” sign is on in your freestall barn? Are you overcrowding certain groups because your breeding program that you instituted three years ago really works well and now you are literally “feeling” the results?

I would consider this a good problem to have. Yet it is not a problem that you perhaps feel you can handle on your own. You may think about calling on additional help. That is professional help in the form of an accountant, a veterinarian or a nutritionist. We are privileged to be able to call on a couple of these professional folks who can do just that for us.

When dealing with an accountant
The two occupations – dairy manager and accountant – generally have very diverse backgrounds, education and experience, so it is very important that both parties realize the importance of open communication. The dairy accountant, whether in-house or as an outside contractor, must fully understand the goals of the dairy operation.

I have seen instances in which there was a lack of communication. The accountant’s financial reports and suggestions to the lender reflected adequate equity for expansion (i.e., purchasing additional cows and adding to the existing facilities) because they thought this was the operation’s goal. However, the dairy’s goal was to secure an additional feed source (i.e., purchase of neighboring land and equipment) in order to reduce the overall cost per hundredweight of milk before expanding cow numbers. Lack of communication and discussion of the operation’s goals in this case was almost disastrous. The dairy struggled with finding adequate and economical feed sources for a period of time. Thankfully, the area realized some of the best growing conditions and low feed costs the following year and the dairy pulled through.

The accountant and dairy manager must both be willing teachers. The one occupation will probably never fully understand the procedures of the other, for example, accounting entries versus correct milking procedures. What are the required results dairymen must explain: Pounds of milk needed per cow versus balance sheet equity.

However, both must be able and willing to provide the other with a basic knowledge. For example, the accountant can explain how to read a balance sheet, present the breakeven costs of SCC treatments or teach the importance of timely tax filings. The dairy manager can explain how to read the dairy management software reports, display various cost options for treating mastitis and describe the labor challenges with providing timely reports.

The accountant and dairy manager must take the extra time and effort to work together as team players. The controller/accountant has long been a necessary partner with company owners/CEOs/management in corporate America, whether in the manufacturing, retail or service industry. They provide the necessary financial information to other members of the team so sound business decisions can be made. This also needs to be the case in the dairy industry today.

But what about growth and expansion of your farm?
When thinking of growth and expansion on a dairy, the first step is getting all parties to understand what is good for cow comfort, cow flow and employees. This may not fit into the building plan. Open discussion is really needed in this area. What are the goals of the dairy owner/manager? Will the building plans meet these goals?

No matter what situation, it is always important to know and understand who the key individuals are and, in this case, it is the dairy manager. It is important to have a discussion on what the plan is and what might be the expected outcomes and why. Basically, it comes down to communication.

Generally understanding the persons involved in the situation, the situation itself and open communication can minimize the challenges. By having open communication and agreeing to be able to disagree with each other (i.e., even if one does not implement an idea) and being able to move forward can make for some constructive changes on a dairy.

It is always important to have a follow-up discussion on whatever the situation/challenge is and talk through the pros and cons. Everyone has good ideas and we should allow open communication to bring out these ideas, plan how to implement them, then implement and review results. This builds a “team.” However, it is important for the team members to be looking out for the interest of the dairy first, not for their own job security.

Conclusion
How to work together as a great team is a crucial thing in these times of increasing economic stress. You can listen to your consultants, who oftentimes have greater wisdom in some areas because they simply have been exposed to so many different situations. Grouping cows, for example, requires lots of different thinking. Some people group by days in milk, days carrying calf, production or body condition score. Whatever your criteria, always remember cow comfort. So what did we do with “friendly” cow #2882?

We put her in the high-production pregnant group – occupancy 103 percent! PD

References omitted but are available upon request at editor@progressivedairy.com

Harley Wagenseller
Manager
Heijmans Family Dairy
wagenseller@live.com