Dairy Today, January 18th, 2008
Large herds also arena[TM]t immune from competition, suggests a USDAa"ERS study, because cost advantages continue to accrue as herds grow to 3,000 cows and beyond. aThe bottom line is that unless you have debt paid down to a small percentage, you have to continue to expand to cover the cost of inflation,a says Wisconsin consultant John Roach. A 2% or 3% annual increase in costs might not seem like much, but after a few years, the net affect is highly corrosive to profi tability, he says. For large herds, cost of production is still about capital effi ciency. aThe big dairies that get in tro...
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