Profit Teams Add Profit

May 12, 2010 06:30 AM
 
 
The 75 dairy farms enrolled in the Dairy Profit Team Program from 2005-2009 generated $12.3 million in additional revenue, according to a summary recently released by the Center for Dairy Excellence. The summary demonstrates the impact a profit team can have on a farm's ability to improve production and profitability.
 
The farms reported a 7 percent increase in total cow numbers to 13,404, an average of about 12 head per farm, based on herd numbers before and after the inception of the team.
 
"With each cow contributing about $13,700 in economic revenue to the local community, this alone translates to an additional $12.3 million in revenue for Pennsylvania's rural neighborhoods,” said John Frey, executive director of the Center for Dairy Excellence. "With every nine cows supporting one job in the state, that translates to an additional 100 jobs within the food service sector and supporting industries.”
 
About 72 percent of the farms reported an increase in daily milk production per cow, with the average adding about seven pounds of milk per cow per day to the milk tank. "Based on $12 milk, that translates to an average of about $4,000 more in monthly revenues for each farm,” Frey added. 
 
Milk quality also improved significantly, with somatic cell counts on participating farms dropping an average of 40,000, or 14 percent, after the introduction of the team program.
 
"Lowering somatic cell counts translate to additional milk quality premiums for dairy farms,” Frey said. "Estimating the difference would equate to about 10 cents more in quality premiums, the farms would have added a total of about $268,000 in premiums to their bottom lines each month.”
 
Profit team farms reported improved pregnancy rates and reproduction. On average, pregnancy rates were four percentage points higher than the average pregnancy rate for all dairy farms in Pennsylvania.
 
Other results in the summary include:
47 percent of farms reported significant increases in daily milk production per cow
40 percent reported significant improvements in pregnancy rates and somatic cell counts
More than 60 percent of producers believe they make better business decisions as a result of their experience with the profit team
53 percent of producers believe they are now better at analyzing management records
More than 40 percent feel they have a more thorough planning process in place
 
"These results demonstrate the power a profit team can have in helping create stronger, more profitable dairy farm businesses in Pennsylvania,” Frey said. "With results like these, we hope to see more dairy farm families taking advantage of this invaluable resource for their businesses.
 
 "We are fortunate to have so many talented people in Pennsylvania's dairy support organizations, and their commitment to the profit team program and these farms is having a big impact on farm viability,” Frey added. "We applaud the farms and the individual team participants for choosing to leverage this program.”
 
To find a link to the summary online, go to www.centerfordairyexcellence.org. Click on "Producer,” then on "Learn More About Profit Teams.” Details about the current "On-Farm Resource Team Program” guidelines and funding levels can also be found. For more information, contact the Center for Dairy Excellence at 717-346-0849 or info@centerfordairyexcellence.org.
 

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