Dairy Science Department
BS in Dairy Science
In recent economic times the dairy industry has witnessed historic lows in milk price and historic highs in feed prices. As a result many dairies have been forced out of business or have found other ways to diversify in order to offset the accumulated debt from dairying. One possible way a dairy can minimize debt is by sending its transition cows to custom transition cow management facility from dry-off through freshening. This management facility would give optimal care and attention to these cows to ensure metabolic and post calving health issues are minimal and that cows are returned to the dairyman ready to be put in the milk string. In addition a dairy can milk 13% more milk cows with the extra space and increase its milk production. This business plan is a feasibility study to determine if this sort of operation can serve as a way to diversify by providing a service that cash flows and generates revenue. This study shows that contracting to manage dry cows from roughly 65 days prepartum to roughly 14 days fresh and raising heifer calves until 120 days old for other dairymen has the potential to be a profitable endeavor. Results suggest that the proposed operation could be financially viable for both contracting dairy producers and the business operator.