Is one dairy management style more profitable?
High production doesn’t guarantee profitability; it must be in balance with costs. But low production virtually guarantees the dairy won’t be profitable. The ability of the producer to control costs and manage labor and capital are key. The report’s authors analyzed the most profitable group (top 25 percent) by management styles. Of the 135 dairies included in that group, 111 fell under four distinct management styles, while the remainder displayed a more balanced approach (see Table 1).