Will You Be Ready? – Part 2
As I promised in my last blog, I said I’d offer some key examples of producers who had positively turned the corner, following 2009’s disastrous results. In all of these examples, they were ready for an upturn in milk prices, in terms of what those higher prices could add to their business. However, they were also producers whose herds had Pregnancy Rates above 20%, Heat Detection Rates over 60%, and Milk Flows well above their breakeven levels at normal milk prices.
The reason they were ready is that we prepared them for the next upturn. In Case #1, they were milking 1,300 cows in a facility designed to milk 2,400. There were other changes that needed to be made, but we were able to develop a plan for the addition of these steps. By boosting their breeding program, they experienced 10-12% annual growth in their herd numbers and grew to 2,400 cows without buying any animals. This was greatly supplemented by a change in Nutritionists, which also helped them go from 70 pounds of milk to 80 pounds per cow per day.
In Case #2, we worked on streamlining their breeding program and eventually adding a Double OvaSync program that boosted their Pregnancy Rate by 7% from 14% to 21%. With the addition of more fresh cows, we were able to boost production from 71 to 75 pounds per cow per day, while increasing their cow numbers from 2,000 to 2,700 in the milk tank.
Before you conclude that this only works for herds that are 2,000 cows plus, here’s an example, in Case #3, where we grew cow numbers from 700 up to a level of 1,100 with some facility improvements that were much needed and which also helped us pick up 5 pounds of milk per cow per day. However, the real key here was that we were able to help this producer to rein in his costs of production by over $2.50 per cwt! This did not happen overnight, and it required some investments to make it possible, but they are now enjoying the benefits of having made the necessary changes.
Were all of their years after 2009 completely positive? No. However, their changes have resulted in better Cash Flows, less stress, the pleasure of setting a positive future path for their businesses, achieving more of the Goals for their operations, and, as a result, having more banks pursuing their financing needs, a rarity in today’s industry circumstances.
Would you like to learn more about these producers and the tactics they used to improve their outcomes, as well as what applications of these lessons you can make in your business? I am currently introducing new Success Strategies Mastermind Groups in early 2019 that are designed to reach more people with the Finance & Strategy Concepts that I offer business people. I am currently working on the content that I will deliver during those sessions. Signups will begin in February, giving you the opportunity to learn this and meet with other producers who have overcome some of the same challenges.
If you have any questions, please e-mail me at firstname.lastname@example.org. I’m always open for a follow-up call and, as always, wish you the best of success!