Dairy Profit Monitor

2007 Impact statement
  • Knoblauch, Wayne Alan

abstract

The Dairy Profit Monitor is an outreach project that aims to provide dairy producers with a tool that allows them to track monthly key parameters that are affected by management decisions, while providing the opportunity to track these benchmarks against themselves and other farms through a web-based system. We aimed to do this in a way that was simple, fast, and convenient for the producer yet flexible and valuable for their business at the same time. The information provided for the Dairy Profit Monitor is intended for use in business analysis, monthly/quarterly management meetings, and to serve as a guide to make operational decisions in the business that will impact profitability.

submitted by

issue being addressed

Dairy producers and managers along with their consultants lacked a tool that looks at their accrual business operating performance on a monthly basis. There are other programs that look at dairy financial performance over an annual, quarterly, and monthly basis, but no single tool that examines operational factors driving profit in the business, including milk production, herd health, and efficiency aspects of the dairy business. Dairy producers only completing a year-end business analysis may find that they could have made changes over the course of the year that could have improved their overall financial performance, but lacked the information and analysis on which to base those decisions. Looking monthly at performance allows producers to examine their business as a whole and allows managers to make decisions that impact the profitability of the business without a time loss. Research has shown that improved record keeping on farms leads to increased profitability. Therefore, producers that improve their records and their tracking of business parameters by using the Dairy Profit Monitor will likely see an increase in farm profitability.

response

In June of 2007, Kyle Getty was hired to lead the project because Griffin Moag left for graduate school. With initial programming completed and the website up and running, the focus has shifted to marketing the program by working with industry professionals and dairy producers to continue building interest in the program. Currently, the program has 175 registered users, which include producers, consultants, and industry professionals. Farms submitting data each month range from 35 to 50 farms. Website programming and capabilities are being updated to offer additional reports and capabilities to both producers and consultants.

impact assessment

Producers and consultants appreciate the monthly “snapshot” of the business that the Dairy Profit Monitor provides. By tying in key operating performance indicators on one report, the program provides an excellent basis for monthly management meetings and discussions. Managers and consultants can highlight areas needing improvement and then utilize the program to track progress over time. By tying in all areas driving performance, key employees get a more accurate picture of how their areas of focus are impacting the business as a whole. By enhancing the level of record keeping and providing more tools for analysis at the farm level, it is apparent that the Dairy Profit Monitor is having an impact in improving decision making for profitability. However, It is still very early in the program to provide any specific numbers on increase in profit at the farm level. As more producers and consultants use the program, we will likely see more feedback and hard numbers pertaining to increased profitability due to improved management information and management decisions.

academic priority area

topic description

Dairy Management

has geographic focus

more links 17 more

funding source description

Unrestricted funds

collaborators

  • AEM
  • Cargill
  • Pro-Dairy

key personnel

  • Kyle Getty
  • Jason Karszes
  • Daivd Galton

mission focus

From CALS annual faculty reporting. Imported on August 5, 2008