Beef vs. dairy

[TexasBred]

If you start dairy now I would look for a niche marketing means such as "organic". Large scale conventional dairy operations have very low unit costs and will likely put you out of business quickly if you are in direct competition.

SR dairies do not compete against each other. I've never seen an industry where people cooperated as much as dairies do. They'll let their problems go in order to come help you. Size has absolutely nothing to do with success or failure although it is hard for a very small mom and pop dairy to be profitable these days but it ahs nothing to do with other dairyman. It has everything to do with market price for their product, imput costs and quality of cattle. Even medium size dairies handle a lot of money every month...they hold on to very little as "net profit". And it's often a 24 hr. a day job.

 

[AllForage]

If you start dairy now I would look for a niche marketing means such as "organic". Large scale conventional dairy operations have very low unit costs and will likely put you out of business quickly if you are in direct competition.

SR dairies do not compete against each other. I've never seen an industry where people cooperated as much as dairies do. They'll let their problems go in order to come help you. Size has absolutely nothing to do with success or failure although it is hard for a very small mom and pop dairy to be profitable these days but it ahs nothing to do with other dairyman. It has everything to do with market price for their product, imput costs and quality of cattle. Even medium size dairies handle a lot of money every month...they hold on to very little as "net profit". And it's often a 24 hr. a day job.

I agree, when producing a commodity there is no inherent competition between neighbors. Now the real competition between producers is land to operate on. Land and lease rates can make it all seem pointless at times.

 

[backhoeboogie]

We were always beef based. Grandaddy had a few jerseys to milk and to use as nurse cows. Dad did the same. I have followed that path except I don't milk one out every day as they did. They always had fresh milk.

There is a write on my great grandad who claims he would let out a dairy cow or two in the depression to let others milk them. Grandaddy never talked much but based on what I read and understand, he must have done a lot of the same things his dad did.

When all the beef were sold off, the milk/nurse cows stayed on the farm.

 

[SRBeef]

If you start dairy now I would look for a niche marketing means such as "organic". Large scale conventional dairy operations have very low unit costs and will likely put you out of business quickly if you are in direct competition.

SR dairies do not compete against each other. I've never seen an industry where people cooperated as much as dairies do. They'll let their problems go in order to come help you. Size has absolutely nothing to do with success or failure although it is hard for a very small mom and pop dairy to be profitable these days but it ahs nothing to do with other dairyman. It has everything to do with market price for their product, imput costs and quality of cattle. Even medium size dairies handle a lot of money every month...they hold on to very little as "net profit". And it's often a 24 hr. a day job.

I agree, when producing a commodity there is no inherent competition between neighbors. Now the real competition between producers is land to operate on. Land and lease rates can make it all seem pointless at times.

I did not express myself well and thank you for correcting me. True large dairies are not in one to one direct "competition" with a small startup dairy across the road. If they sell to a processor they will likely both get the same price for their milk.

What I was trying to say though is that a large, highly capitalized dairy often has a lower cost of production per gallon of milk and may likely survive at a lower bulk milk price where a small startup operation can not.

That is at times not true because the larger highly mechanized dairy may also be highly leveraged financially. However there are economies of scale in a larger, more mechanized, capitalized operation. That can only be equalized if a startup markets their milk differently. Not really my area of expertise but something I have seen in various dairy operations.

Jim

 

[Nite Hawk]

Start up costs for dairy in Canada are insane, mostly due to the quota costs.
Also, with dairying one is tied down 24/7 unless one has a good relief milker. One also is calving year around for a year around milk supply. Legally the barns must be cleaned daily, plus keeping everything thawed and working in our colder climate.
Lots more work than beef. Around here with beef after calving/branding/ de-horning/ castrating, etc
Most cows are pushed out on the range, and alot of ranchers won;t even see their cows for months. Not the best management in my opinion, but that is often what happens..
Nite Hawk

 

[Lawson Farms]

I grew up on a family dairy farm. Went to college and moved off the farm. My dad passed away suddenly but we continued the dairy operation for just over a year after he passed. That was 5 years ago. Now we're up to about 200 beef mama cows. Some of those are left over Holsteins from the dairy operation. My great grandfather milked on this property. He transitioned to beef as health declined. My grandfather and father and his siblings continued the beef cows until my dad started dairying again in a new facility in the mid 70's. I know of several young guys my age around here that have gotten into beef cows. I know of several guys my parents age that have gotten into beef. I know of none that have gotten into dairying other than maybe a single cow for themselves.