The decisions you make regarding calf housing and feeding methods can have an enormous impact on their health growth and behavior and, as a result, will also affect your dairy farm profit.

Housing, Feeding and Management on the Inside

Research and breeder experience have determined that the benchmark housing choice for disease control in nursing calves is still an individual outdoor hutch. However, careful management and proper barn design can help make nursery barns for either individually or group-housed calves successful. Deciding which one to choose for your farm will require careful consideration of the pros and cons of both types of indoor management systems.

Better Housing by Design

When considering healthy indoor calf housing, the following housing principles are crucial to efficient design:

1. The layout of the barn must provide a minimum of approximately 15 square feet of bedded area per calf in group pens.
2. The design of the barn must offer a minimum of approximately 30 square feet in individual pens.
3. Indoor housing has no physical barrier to prevent the spread of disease so plentiful space must be available.
4. Indoor housing and feeding usually means the calves consume larger volumes of liquid. As a result, more space is needed per calf because bedding is soiled more quickly.
5. It is important to remove moisture from the calf’s environment. Sloped concrete and floors with gravel draining base improve the removal of moisture and improve the insulating lifetime of the bedding while decreasing humidity for improved air hygiene in the calf barn.

Advantages for Dairy Calves Raised Indoors

There is a definite advantage for group housed nursing calves when they are given more space. Reports indicate drier beds, healthier calves, and better growth rates, with more space, calves can socialize and play freely in a more natural group setting. The open housing also allows calves to suckle the nozzle between feedings – also a natural behavior. With all the advantages, calf managers must still be as vigilant in monitoring calf health visually. Even with computerized monitoring of behavior changes managers must remember that not all calves change their feeding behavior when they are sick. So, despite the data collection advantages, managers must still be as vigilant in monitoring calf health visually as they are with individual housing.

Benefits for Dairy Producers

Every dairy operation will have its own opportunities and challenges with implementation of group feeding and indoor housing. Labor management differs between automatic group feeders and individual pens.  Total time spent is about the same for both systems, although the focus is different. Five areas that are gaining producer support are the positive results in the areas of calf well-being, dairy profitability, labor savings, caregiver comfort and protection of milk’s good image.

To prevent respiratory disease you must ensure good air hygiene through proper ventilation that is draft-free, preferably achieved through natural ventilation with supplemental positive-pressure tubes.

Inside Pen Management Pointers

1. All-in/all-out management of group and individual pen calf barns can help break disease cycles by separating older calves from young ones in both time and space and thus reducing the risk of young calves picking up pathogens from contact with older animals.
2. Clean, deep, dry bedding allows calves to “nest” and, as a result, trap a layer of warm air around themselves to reduce heat loss as well as lowering airborne bacterial counts.
3. Air exchange is an important consideration and must be managed
4. If the system is not computerized, it is still important to keep accurate records.

Choosing Between Individual or Group Housing

Before you even consider how to house your nursing calves, a successful program must have started with excellent pre-fresh cow and heifer care, clean maternity pens, and attentive newborn care. Prompt removal from the adult cow environment, navel dipping and colostrum feeding are the next steps. It is well accepted that using individual pens to house calves can solve many of the concerns regarding the spread of disease.  Sick calves may be easier to pick out in individual pens with screening done at each feeding, with restraint for examination and quicker treatment. The issue of socialization can be somewhat resolved by placing calves in pairs by removing a panel between two pens after the period of highest disease risk has passed, perhaps after 2 or 3 weeks old or even waiting until much closer to or after weaning.

With individual pens, chores are mostly focused on feeding and cleaning up after each calf.

Group housing compliments automated feeding systems and allows calves to exhibit or develop healthy social behaviors.

Consider Automated Feeding

Automatic group feeders not only allow for greater volumes of milk or replacer to be fed per day but also allow for a more natural frequency and distribution of milk meals. Producers have automated control over how much milk or replacer each calf receives during its stay in the nursery and can automatically schedule weaning. This removes the potential for human error.

Choosing Between Individual or Group Feeders

It goes without saying that timely delivery of an appropriate quantity of quality, clean colostrum is essential for providing passive immunity to calves. This is especially important for those raised in groups. Labor management differs in focus but not amount between automatic group feeders and individual pens.  The work associated with automatic group feeders is spent more on monitoring, managing health and watching performance. The schedule is more flexible than that needed for individually housed calves, where the chores are mostly focused on feeding and clearing up after each calf.

Challenges with Automated Feeder Management

Every system has its pluses and minuses.  It is important to get the details right when you implement an automated feeding system.

1. A high stocking density relative to machine availability results in inadequate time for all calves to nurse, which can lead to cross-sucking.
2. Less expensive machines need more frequent attention for filling and do not have data recording or self-cleaning capabilities.
3. Not all machines can serve every nipple simultaneously. This reduces the time available to feed calves at each station.
4. Mixing problems, due to inaccurate calibration and problems with milk replacer clumping, can result in inconsistent delivery of milk or replacer, which can lead to increased incidence of cross-sucking as well as scours and other diseases.
5. Inadequate cleaning of the machines, either due to inadequate maintenance or even water quality problems, is also one of the main causes of disease in group-housed nursery calves.
6. Increased group size can mean less time available per calf to nurse and greater risk of exposure to potentially more sick calves.
7. Note: Producers often find smaller group sizes to be more efficient for calf health and growth.

The Bullvine Bottom Line

Recent innovations have made group feeding and rearing a practical alternative to traditional rearing in individual pens or hutches. As producers move away from hutches and look into building new calf barns or remodeling an existing barn to house nursing calves, they have the opportunity to consider both automatic group feeders, group housing or individual pens. Knowing the risks and benefits of both systems, as well as the investment involved, can help determine if the inside story is the right management fit for your operation.

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There are many articles offering good advice to hard working dairy farm managers. The great thing about good advice is that it provides directional signs that we can use to navigate the twists and turns of the dairy farming road. We still fall over, lose our way and get grit in our shoes. But somehow having signposts we trust no matter what comes our way, gives us hope. Of course, our progress depends on whether or NOT we move forward with the advice. In short, the problem isn’t the advice that we are hearing. The problem is what we are doing about it.

The Milk House has been a great place for dairy breeders to share the advice that they find most helpful. Building upon that great discussion here is a selection of the 12 best pieces of dairy advice that you can ACT upon. (Read more: Introducing The Milk House – Dairy Breeder Networking on Facebook)

1. “Be proactive, not reactive!”
   If you’re going to act upon advice, you must have that as an automatic response. Several dairy breeders joined the discussion to say that this has helped their dairy development programs. “Don’t say I’ll just do it tomorrow when you can do it today.” And thus it happens that very early in our “Best Advice” list, we are being urged not only to hear advice or receive it…. But also to put the advice into action.
2. “Be picky about who you listen ”
   At the other extreme from never taking advice from anyone is the dangerous situation where you accept advice from everyone! Some “experts” have their own agenda, which may be counterproductive to your goals. One dairyman points out the importance of seeking quality over quantity, “Surround yourself with knowledgeable people that that care about not only your business and your cows but about you too.” Others agree that it is possible to find sales rep whose help goes beyond lining their own pockets.” When it comes to advice, a large part of what you are doing is building strong relationships. (Read more: How To Choose The Best Dairy Consultant For Your Business)
3. “Always remember that dairying is about cows and making milk!”
   When it comes to dairying, a lot of the best advice has to do with producing milk. Short and sweet guideposts start with “Milk makes money!” Those three words may seem dumb to some but are effective and build on the idea, “Breed for type and feed for production.” When you’re in the milk business, the obvious advice is to put the emphasis on production. One contributor refined this idea to “Breed for production and take the show cows as they come along.” Another Milk House contributor shared his trifecta of winning advice regarding this area: “There are three rules to high production – feed your milkers as well as you can, feed your dry cows as well as your milkers and grow your young stock.” Feeding advice rated high with many proactive dairy managers. One lady urged “Keep feeding the best you can, because if they drop, it’s near impossible to get them back up to where they were!” At first you might think this next piece of advice is counter-productive when it urges a negative: “You don’t have to feed what you grow.” The explanation clears up the confusion. “If you have a bad year of making hay then you’ll have a bad year making milk unless you find something better.” Going back from the cattle feeding to the dairy cattle themselves is this advice, “Take care of the cows and the cows will take care of you”.
4. “Know your cows!”
   In the dairy business, your success with the cattle depends on how well you notice the little things. Dairy breeders who know their cattle will know when something is off. For one thing, the cattle themselves will be sending the message that something is wrong. Of course, then it goes back to “doing something about it!” The better you know your dairy herd, the more flexible you will be in responding to problems. Flexibility is key because, just when you think you’ve got it figured out, something will throw you a curve ball – the weather, milk prices, employees or illness. The more you know your own situation, the more okay you will be with changing the plan if you need to.
5. “Keep your calves alive and your cows pregnant”
   This two-pronged approach of pregnant cows and live calves is a profit maker according to successful dairy managers. “It’s hard to lose money if you do both those things well!” Of course if you can’t identify what is limiting your pregnancies or taking down your calves, you will be behind the eight ball. One reader shared advice she acted upon and gave us a pat on the back at the same time when she referenced, “That calf rearing article in The Bullvine some years ago certainly saved us a lot of money!”
6. “Go back to school and get a business degree!”
   This is great advice for anyone choosing to manage or be part of a dairy business. Business touches on virtually every aspect of modern society and applying these premises to your goals can be a big help. Furthermore, business graduates are in high demand in all areas of agriculture. Another corollary for business-like thinking is this recommendation taken by some of our readers, ““If you treat dairying like a business it can make a comfortable lifestyle. If you treat dairying like a lifestyle, it can make for a lousy business.” One reader ended with this regret, “Too bad it took me so long to realize that it was true.
7. “People need to know how much you care before they care how much you know,”
   We think we know what we need. We feel that we are in charge, and we talk about targets and goals and visions, but our dairy team (family, employees, suppliers, vets and consultants) don’t care about any of that stuff for very long. We can communicate and engage and connect until the cows come home, but no one really listens to us. They just smile and nod and go back to doing their jobs the way they always have. But once we demonstrate that we care about them … then they care about us. And when they know we care, they will listen … and they will do what is needed.
8. “Pay close attention to detail every day and do all those “small/extra things” that make a big difference at the end of the day!”
   More, bigger and better aren’t always the key to success. Often times, it is simply doing the little things well. Sometimes it’s a small change that makes a big difference. This is true with our attitudes as well. Each day, pay attention to at least one or two moments that worked out well for your dairy. Don’t shrug your shoulders and conclude that “it was just a crappy day…” Even a bad experience has a valuable moment wrapped up inside of it, if only you‘re willing to dig deeper to discover it. Pay attention to what you have done. The constant barrage to “DO more,” “GET more,” and “BE more” negates what you have done, what you have and who you are. It makes you feel deprived. Less than. Not good enough. In this competitive world of dairying, we often need to remind ourselves of what we have accomplished.
9. “You should act the way that you want people to remember you.”
   Many dairy people recognize the importance of this advice that Dr. Seuss phrased this way, “Today I will behave as if this is the day I will be remembered” This great advice applies equally well in the ring, on the farm and in life. Live today the way you want to be remembered tomorrow. What a difference that could make toward resolving the unpleasantness of overheard conversations, undercover videos or candid camera shots!
10. “Work hard but play harder!” Despite the 24/7 nature of dairy farming, or maybe because of it, successful dairy farmers recognize the importance of balancing work and play. Along with the planting, harvesting, milking and equipment maintenance, many dairy operations have jet skis, snowmobiles, 4-wheelers, and boats. They play hard and enjoy life! Others confirm that it is important to spend time with family and friends away from the dairy farm. “It helps you maintain perspective on the challenges you face and thus on the future of your operation.” Not only that, but time off can recharge your batteries and improve performance. So take at least one weekend off of the farm no matter what. Ask a relative, friend, neighbor, or whoever to milk, in order to keep yourself from burning out.
11. A Truism of Animal Agriculture: “If you have livestock, then you’re gonna have deadstock.”
    The cycle of life and death is something every dairy farmer must deal with. One of our Milk House contributors was told this when she was upset and crying at the loss of one of the farm animals. No matter how true it is, it doesn’t entirely take away feelings of loss when one of our animals loses the fight for life. Striving to improve these odds is an area we all seek advice on.

The previous 11 pieces of advice have contributed to keeping the dairy breeders who shared them focused, compassionate and successful. It is important to remember the three step process of

1. Hearing the advice
2. Accepting the advice
3. Taking action on the advice.

The Bullvine Bottom Line

And so we close with our twelfth piece of dairy wisdom. #12 “Enjoy what you have. It may be nice to look toward what “may” happen in the future – but ALWAYS appreciate what God has given you today!” That is a great piece of advice that we can all act on immediately.

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A revolutionary rotary dairy platform that is 80% lighter than concrete and five times stronger will be operating in Australia within months.

The design has been patented by Waikato Milking Systems from Hamilton, New Zealand, and incorporates a product usually found in bullet-proof vests and aircraft.

Demand for the Centrus platform contributed to 40% growth in Waikato’s international business last year — principally driven from demand in the USA, the UK, China, South Africa and Australia. 

Growth is expected to jump by a similar margin again this year — despite the reality that Waikato is operating in a dairying landscape struggling with disappointing milk prices.

The Centrus platforms have been the icing on the cake for Waikato’s most recent success story, but it is far from the only story. It has taken Waikato just three decades to become one of the world’s largest manufacturers of rotary dairy platforms and technology. 

The Centrus platform is the latest hero in Waikato Milking Systems’ business.

The platform is made using a multi-layer laminate process that includes Kevlar®, a synthetic fibre used in a host of applications from bike tyres and racing sails to probably its best-known use: body armour. Because of its high tensile strength, Kevlar is one of the strongest man-made fibres on the market. Waikato infuses it with resin in a multi-layer design, which gives it extreme impact resistance. High profile rubber mats, that are water jet-cut in Germany, are fitted and secured into the recessed moulded platform at installation.

Kevlar’s lightness and strength has been a game changer for big dairies, says Waikato’s Chief Executive Officer, Dean Bell.

“The platform is more power-efficient, because it is so much lighter,” Dean says, “but the real gain on these systems is that a rotary platform is very much like a great, big bearing. And the more stress and load you can take out of it, the longer you can go between service intervals. It just makes a lot of sense to use modern materials that are strong and also very, very light.”

Dean says candidly that Centrus has fuelled recent international inquiry, but ultimately it has been Waikato’s ability to control design, manufacture at high quality and complete full dairy installations in house, that has completed the big picture.

The new Centrus dairy platform is 80% lighter and five times stronger than concrete. Photo supplied.

Turnkey ability a strength

The fully New Zealand-owned company is housed under one roof on 1.6 hectares in the heart of dairying country in the North Island. From there, Waikato designs, manufactures and installs everything used in the dairy – right down to the receival vessels.

Dean has been with the company 25 years, and says when it comes to milking componentry, Waikato has produced some of the most technologically advanced innovations on the market today.

“We are one of the only companies in the world that can do everything from start to finish. I actually can’t think of anyone else. With all of our divisions together under the one roof, it means we can share the common designs right down to the smallest details. There is nothing we can’t build. It’s just a matter of getting the guys together and making sure it fits.

“We have lots of pretty interesting technology and componentry that historically we’ve sold to various parts of the world. But over the last handful of years we’ve really started to get focused on our rotary expertise. And as we’ve got bigger, we started exporting complete rotary solutions.”

Big targets

He says interest in the Centrus has mainly come from big dairies – many of which are milking more than twice a day.

“The one we’ve just finished the design on is for an 84-bail dairy and, to be honest, the target audience is almost exclusively international, and it’s almost exclusively for 24-hour dairies that milk big, North American-bred Holsteins.

“The Centrus also includes the new automatic aligning pivot roller, so it’s designed for high-use dairies that never shut down. For the big international dairies, we also use steelwork that is almost three times the weight of what we use typically here in NZ or in countries that are more grazing based.”

Waikato Milking Systems had a big presence in the trade exhibits at last year’s World Dairy Expo at Madison, in the USA. The event draws 70,000 visitors from 90 countries annually. Photo: Dianna Malcolm.

Staff at the ready

For the first Centrus installation, not only did Waikato ship the ready-to-assemble dairy in four containers, it also sent its development team. So, if any tweaks were needed, they had the qualified staff on the ground to make it happen. It takes two weeks to install the platform and another two to three weeks to install the milking system.

“It’s a bit different doing it that way, but we wanted to have the designers seeing how things worked in practice,” Dean says. “Then it can be more of an engineering assembly.”

Waikato also produces conventional concrete rotary platforms, one of which – the Orbit – has an extra-wide (2.7m) deck, providing protection for the milking machine and a larger standing area for the cows. Its range of herringbone systems includes one that has a single 100mm milk pipe, which drains into a receiver at the end of the pit, making milking fast and uninterrupted.

Innovation award

Dairy componentry remains an important part of the business.

“Earlier this year we introduced an electronic milk meter which won the Supreme Award at the Plastics Industry Design Awards. It’s the most accurate meter on the market, giving farmers real-time information on the production of each cow.”

Dean adds that the company’s SmartD-TECT mastitis identification technology continues to be one the simplest and most accurate ways to find mastitis in individual quarters early, with the system alerting the operator. More company innovations were expected to be unveiled at the New Zealand Fieldays, in Hamilton, in June.

“We understand farmers don’t want to invest in large capital items which become outdated, so future-proofing is factored into everything we do.”

Confidence builds quality

Dean says Waikato’s focus continues to be on customer satisfaction.

“We have grown in confidence over the years. We’re building very high quality products that are very innovative, in a space where no one has operated before.

“And so, to a certain extent, I think we are pretty good at this and we’re very, very fussy. We find when we bring customers from around the world to our office – and they go through the factories and meet with us – they almost always buy.

“So, we’re not really selling in that sense. Typically they have seen a lot of our competitors already, and if they are buying from us then we’re not doing too badly. And they are making an informed decision. If we’re not the right decision, then we’re not the right decision. We want people to get to the end of any major project and feel that we were decent to deal with.

“Ideally, it makes sense for our clients to make a quick trip to New Zealand – and, it’s not the worst place in the world to visit.”

This article first appeared in the June – August 2015 Edition of Crazy Cow in Print.  Click here to check out there Facebook group.

Dairying is a complicated business.  Sometimes you need to ask for help. None of us knows everything about growing and managing a dairy herd.  Some are just starting out. Others might be upscaling? Or downsizing?  Regardless of where you are on the spectrum, there could be major questions about dairy nutrition, finances, real estate or animal buying and selling.  At the Bullvine we think there are many questions to ask before hiring a consultant.

The second question is the most important one!

When you’re trying to make sense of a problem, there is no such thing as a stupid question.  Ask them all.  The more, the better.  But the most important question each time is the SECOND question.  That is not question #2.  The second question is that one that you ask after you have been given a part answer.  Listen for what you haven’t been told yet.  Here are ten guidelines that will help you to find the right consultant for your dairy business and we have added a second question to each one to get you started with this important questioning process.

IT’S ALL ABOUT PERFORMANCE.  Theirs?  or Yours?

When hiring a consultant, make sure to hire superior problem solvers.  First off you must know actual data on the problem your dairy is facing.  A good consultant should have experience with the challenges or opportunities you are facing.  You need the experience they bring to the table.  That’s what makes it possible to address the issues you face and turn performance into profits. Be specific about everything that you expect the consultant to deliver or produce.

The second question:  What do you expect from me?  What can I expect from you?

Opinion and analysis are great.  But where’s the action plan?

Once you have transparency between both parties, a good action plan is critical.  This must include a method of evaluating the performance expected.  Setting benchmarks based on your objectives and having detailed follow-up is the true measure of the client-consultant relationship.  If you don’t have an action plan to implement, how do you evaluate what you are paying for?

The second question:  Will you provide a written action plan?

What’s The UP side of having a Consultant?

Having someone work with you to develop your dairy operation can be very rewarding.  Successful partnerships establish a trust-based relationship. The relationship between dairy consultants and dairy managers is not unlike the relationship between a doctor and patient.  When there is complete candor, the consultant is not hindered in his or her effort to help your dairy business.  Chose a consultant with whom you can develop this kind of professional relationship.

The second question:  Is our proposed project one that you have the enthusiasm to take on?

GIVE AND TAKE. Who’s giving?  Who’s taking?

Sometimes you can be fooled about the hidden agenda of the person you’re consulting with. I worked with one young lady who had hired me for a marketing project. Our initial meetings went well, and I was given the job of writing up a plan.  In due time, she returned for a review of the completed work.  She arrived at my office without a briefcase, which was a small but significant sign that alerted me to the fact that this wasn’t the usual information exchange. I asked the second question, “Are we working together today?” Sure enough, she explained, “I have found a student who will carry out this project … for a lot less than you requested. So I just need you to give it to me.”  She was the only person who was surprised that she left my office without said project. As I was closing the door, I did so with the words, “For that to happen, it would be unethical.” She was protesting every step of the way that her actions were not unethical because they would win her points with her boss, and that’s what SHE needed.”  Needless to say, the points were lost.  Her boss was told. I was compensated.  And no one had the project to implement.  I filed it under, “Older and wiser!” Bottom of Form

The second question:  What is your personal interest in our business relationship?  

The Big “E”: Expertise, Experience, and Ethics.

First and foremost, an effective consultant must be a person of the highest character.  He or she must be a consummate professional.  Before you entrust your financial future and/or the health and welfare of your dairy herd to other individuals, you want to be confident that they are willing to put your best interests ahead for their own.  For example, the consultant must be willing to tell you things you need to hear, but may not want to — even if doing so means that they lose your business.  Sure you want to hear that your project could bring in big bucks but your future depends on facts, not fiction. Sometimes the truth can hurt your pride. An experienced industry expert will give you facts supported by honest data. The consultant must demonstrate that they care deeply about all of their clients.  While you can’t depend on the rumor mill, do your due diligence and be aware that if some clients are taking losses instead of profits, you could be next.

The second question:  Can you provide industry references for me to speak with?

Are your consultants making you money or just taking it?

We’ve all run into the consultants who look the picture of success. They dress for it.  They drive it.  Their offices are magazine-cover perfect. However, how much of their success translates into moving your dairy operation forward? Consultants who keep up appearances sometimes do so at the expense of their clients. Make sure you know the financial stability of the consultant you are about to work with.  Everybody has ups and downs, but it’s not your job to maintain the consultant in the style that they have become accustomed to.

The second question:  What can you tell me about your financial stability?

Is your consultant ready and reliable? Will they report regularly?

Do you currently work with consultants? If the answer is yes, do you receive regular reports? At the very minimum, you should be receiving monthly updates outlining the progress made on your project.  Ideally you are getting live discussion either over the phone or, better yet, in person.  Whatever method is used to keep you informed, your consultant should continually be asking, “How can we do our job better?”

The second question:  Will you put your promises and results into a written report?

It’s SHOW and TELL time for everybody

Information is the most valuable commodity exchanged between a dairy operation and a potential consultant.  The most important pieces are knowing what results and deliverable are expected. Both sides must be open and straightforward with each other. Above all, it must be clearly defined regarding whom the consultant will work with and exactly who will do the job. In some cases, it may be necessary to specify who owns the finished work, as in the case of a customized feed product or intellectual property.  Perhaps confidentiality agreements will be needed. If results are to be released, who has sign off?  Is there a potential conflict of interest here? Knowing the answers to these questions in advance can prevent legal and financial hassles down the line.

The second question:  Is there something that they are not telling me?

Who’s the Boss?

There’s part of each of us that wants our consultants to remember, “The client is always right!” However, if that was true, why hire a consultant in the first place?  Yes, you know what you want but they should be telling you what to do.  They were hired because they have a specific expertise that you don’t have.  It doesn’t matter if you like what they say or not.  Their job as a consultant is to do what’s best for you.  Good consultants will have data to back up their solutions or promises.  Sometimes it doesn’t work the first time.  How a consultant handles, the roadblocks is the most important characteristic to look for. It is also interesting to find out if the boss of your consulting firm will be doing any of the work on your project.  Some bigger companies catch you with their reputation and then send junior consultants to carry out the work.

The second question:  Who will I actually be working with?

Working with a consultant means having a relationship

If you want to reduce your stress when hiring a consultant, recognize that you are both looking for a productive relationship.  Sometimes all you get is a regular “social” call, followed up by an invoice. Both parties should want more.  You’re looking to improve your dairy enterprise. Consultants only stay in business by getting results for their clients. Don’t get involved with a consultant who won’t or can’t provide you with results. Picking a consultant is like being in a marriage. Sometimes you get into it for the wrong reasons.  “Better than nothing” is not a good foundation to build on.

The second question:  Are we just dating or is this a marriage?

The Bullvine Bottom Line

At the end of the day, most of us probably like our dairy consultants on a personal level.  After all, they work in this industry that we all feel passionate about.  However, that doesn’t mean they are the right consultant for us. They might indeed be good people but are with a firm that is more interested in selling their high-fee products and services. Quite frankly, without learning to ask the second question, it is hard to know whether you’re dealing with a trusted advisor or just a good salesperson.  Some folks might not care, but you should.

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Today we are going to deal with name calling that surrounds this business of dairy farming.  Based on drive-by impressions, some non-farmers call dairies “Factory Farms”.  “Family Farm” which is somewhat more positively perceived, is usually only applied to small farms.  If said small farms are particularly successful, they too are in danger of sliding into the “Factory Farm” category.  For responsible dairy families the new buzzword is becoming, “Family Firm” and it’s turning around the negative tales which previously resulted from unsuccessful family negotiations.  For those choosing this model of business farming success, the “Family Firm” provides a strong foundation for generations who choose to work together.  It also avoids the quicksand that lack of succession planning causes some dairy families to fall into. Being unprepared literally sucks the life out of the family and sinks the hopes of continued farming for the next generation.

What Name Does Your Family Choose to Work Under?

You might think that choosing between two names is the least of the challenges facing your dairy farming family.  However, if one generation is working under the lifestyle-status-quo category and another is all-business-all- the time (not to mention the third family party who sees the farm merely as a paycheck for funding “real” life), the conflict is going to affect not only the family name but the family dairy profitability.

The first thing to get out of the way, is how the family feels about profitability.  There are some who feel profitability and a business focus could negatively impact how they feel about dairy farming. Others feel it only makes sense to continually improve the business processes to improve the product (milk) and the cows that produce it.  In the end the choice you make needs to be the one that gives all family members a strong sense of purpose, shared values and mutual goals for the dairy.

“Family businesses are neither families nor companies but the best and worst of both”

The above statement is true of family businesses the world over.  When families work together they go into it head first sometimes… heart first all the time.  And it isn’t too long until hard heads and cold hearts meet at the board room or kitchen table.  What sometimes gets lost in the shuffle is that a family dairy farm isn’t an entitlement due to birth.  It’s work.  It’s ownership.  Yes and, hopefully, there will be profits but there is also involvement, hard work and responsibility. The statistic that often gets lost, regardless of what side of the family farm fence you are standing on, is the fact that we are trying to fit 21^st century farming into 20^th century of even 19^th Century “idea” of farming.  This romantic notion must give way to a business-like approach or we will see the end of farming all together.

“Are you already Behind the Late Ball?” 

Does your dairy farm have a clear succession plan in place? Do all family members know and agree with the details.  If asked, would they be able to clearly outline the important points?  Would there be major differences in what they thought was a given? Whenever families work together, there can be different expectations of different generations.  If the generations are the same, there can still be troublesome perceptions of who is “more equal”, when it comes to sharing the wealth.  Sometimes questions arise about “when” a succession plan should come into play, of even “if” one is needed. There are some dairy farmers who have no desire to stop their life’s work, regardless of the needs, wants and necessities of those who also are necessary to the profitable functioning of the dairy farm. Others suddenly see time winding down and want to get out ….now!!   Sit down.  Get it on paper.  It quite likely won’t be right on the first run through.  Work it out.  You wouldn’t leave the details of breeding feeding and caring for the dairy herd up to chance.  Don’t leave your succession planning there either. (To consider these concepts further refer to the Bullvine article, “Farm Succession: Which Exit is Yours?”

A Family Firm Needs to be Healthy, Wealthy and Wise

When considering the assets of a Family Dairy Firm, it doesn’t start and end with an accounting of the cows, machinery, buildings and land.  Of course, the first tally is that of the family. Each member brings unique talents and strengths to the business. There can be a variety of education, work and life experiences that add very real value to the business. If there is a crucial element missing, it’s never too late to do some studying.  In these rapidly changing times, dairy learning should be ongoing, voluntary and self-motivated. Remember this quote, “Commit yourself to lifelong learning.  The most valuable asset you’ll ever have is your mind and what you put into it.” (Brian Tracy – Canadian author and motivator)

When multi-generations work together health is a factor.  Health or health issues impact not only the day to day operation but also how modifications – technology and behavioral – will affect the ongoing functioning of the dairy. Aging can’t be avoided. Health conditions can strike young and old alike.  Be prepared to make changes that keep the operation operating.  All firms — country dairy or city conglomerate—must deal with their human resources responsibly.

What Makes the Family Firm Unique to Dairy Farming?

What distinguishes family businesses, of course, is family. Adding family values, loyalty, pride, cohesiveness, meaning and all the other strengths of family to the passion for the dairy industry provides support not available to many purely corporate enterprises. Today’s economy continues to chew up and spit out whole industries. Technology is evolving at unprecedented rates. Global competition and instantaneous communication have turned the competitive advantage of secrecy upside down.  Opportunities in other industries woo well-educated offspring off the farm. Add to this the increasing social and cultural pressures that make successful family life challenging, and targeting a 30% generational survival rate for the family farm is incredible testimony to the positive power of family when applied to the family dairy farm.

Who Owns the Family Firm? Who Owns the Farm? Who’s Getting Rich? 

Maintaining family control of the dairy operation can be difficult.  The increasing size of the family dictates that there must be expansion and growth.  Raising fresh capital or expanding revenue sources must be addressed. These are further sources of potential conflict. Should the family keep control?  Should capital be raised outside the family? If steady long-term growth is the goal what happens if one or more family members need cash now?

Don’t Derail Your Family Success with Family Fighting

Get a clear handle on the debt situation.  Only then will you be able to put your energies into moving forward.  Knowing the problem isn’t your biggest hurdle.  Avoiding dealing with it is.

Treat each other with respect.  Families become very familiar with each other’s strengths and weaknesses.  Being able to push buttons is not a license to do so. Some families develop an adult version of “time out” so that words said in the heat of emotion don’t prevent the family from dealing with the problem. Walking away until cooler heads can prevail is a lot better than making any problem into a situation that is insurmountable.

Everyone participates.  A family firm cannot build on the labor and responsibility of one or two.  It takes a whole family bringing something to the business to make it a successful family farm.  Farming is a legacy.  What it isn’t is a gift that is passed on by entitlement only.  “Everyone involved in the succession should be able to point to what they bring to the table that will allow the dairy operation to continue successfully”.

Dairy farm families must decide, “Does the family serve the business, or does the business serve the family.”  

This could be the most important discussion of all .Work out what the business owes to each generation.  These are tough conversations but nothing goes forward or continues, until the answers are clear— and accepted by everyone.

For more information on the above five succession complications, see ‘Five Stingers that You want to Avoid’ in the Bullvine article, “Farm Succession: Kicking the Hornet’s Nest?”

Building a Firm Foundation for the Family Farm

Family farms can go under for many reasons beyond the day to day operation:

• Conflicts over money;
• Seeing management weakness through rose colored glasses;
• Infighting over who’s the boss
• Squabbles about the succession of power from one generation to the next.

Family farms that survive for many generations make sure that every generation is empowered with a strong sense of purpose.  Over decades, they develop oral and written agreements that address issues that affect the longevity and profitability of the dairy operation. They continually update the roles and responsibilities of all family members who are involved in the business.  It is clearly stated who can and cannot derive profit from the dairy farm. The continual development and interpretation of these agreements is the key that turns the dairy firm into a successful one or one that fails.

The Bullvine Bottom Line 

Dairy farming is not a sure thing.  Family farms and Family firms need clear rules and guidelines to build on.  Success often depends on a shared long-term vision coupled with hard work every single day.  Almost all dairies started out at one time as family businesses.  Those that master the challenges of this business model will endure and prosper for generations. The work involved in developing the dairy firm is complex, extensive and never-ending.  However, when the name-calling is over, it is clear that whether it’s family farm or family firm … the most important part of the equation to focus on is “FAMILY”!

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