Help is on the Way!

Two months ago, as I was traveling to World Dairy Expo in Wisconsin, I headed east on I-80 and noticed a semi-truck & trailer coming across the median toward our vehicle. Holy smokes! Fortunately, we were protected by the wire cables that separated the two sides of this interstate highway.

I called 911 right away to give the operator the mile marker where this accident had happened. After thanking me for calling it in, she exclaimed that “Help is on the way…”

Given the current milk pricing in the dairy industry, as well as the additional deductions being assessed by some cooperatives to shore up their Balance Sheets, many producers are likely hoping for the same thing… that help is truly on the way! Prices have been slammed to levels we haven’t seen for years.

What to do?

1.)   No, do not “put your head in the sand.” Survival will require your full attention.

2.)   Instead, realize that feed costs are at a very nice low point, keeping overall costs down. Additionally, your cull cows for beef and the calves you are selling are at lofty price levels.

3.)   However, even if these two items stay at their current levels, how long can you manage the upcoming low milk prices? Knowing your Break-Even levels will help.

4.)   Additionally, while our primary focus has been on milk prices, remember that there are a lot of other variables to consider.

5.)   What else can you adjust? Are you maximizing your milk production levels? Are there some costs that you can reduce? While we never want to cut costs to the point where it would hurt cow performance, is it time to look at multiple sources of commodities, i.e., initiate some price competition?

6.)   Is your labor force being fully optimized? Can we increase their productivity? When did you last bid out your insurance? How about Worker’s Comp and Supplies? Today, your very survival may depend on these reductions.

This is a time for action. Don’t delay. What’s your first step?

“The world has the habit of making room for the man whose words and actions show that he knows where is going.”                      Napoleon Hill

Let’s take your business to the Next Level!