Having a successful dairy farm enterprise can be achieved in a multitude of ways. Even though no two farms are exactly alike, where there is success there is a business person with dreams, goals and plans that get put into action. Invariably there are five key factors that the business manager monitors closely on a continual basis. These factors are often referred to as Key Performance Indicators.
Each farm and farm manager has individual needs and factors that need attention at any given time. One way to get started on knowing your KPIs is to consider six main areas.
A good recommendation is to focus on one performance indicator from each of the six areas:
Animal Health and Disease
Genetics, Sales and Marketing
The task of developing a KPI program for a herd can be daunting. Suggestions on getting started include:
Dairy cattle breeders tend not to speak in terms of profit per cow per year. More often their bragging points are in terms of animal records or enterprise performance. Yet it is profit per cow that covers living costs, provides return on investment, pays for kids’ college educations and keeps the banker happy. It is strongly recommended that at least one of the five KPIs should be a measure of dollar revenue, feed costs or net returns.
Relating genetics to farm management and farm profit is not always an easy twosome to bring together. However, for success there must be measures that can be continually monitored so that farm managers can make informed decisions or take corrective actions. Find your key performance indicators and grow your profits.