The Dairy Cost Study offers business analysis for participating Alberta dairy farmers. Pauline Van Biert, research analyst with Alberta Agriculture and Forestry, looks at the benefits that producers receive when they sign up for this free program.
“A prime objective of any business is to have a good understanding of how well it is performing,” explains Van Biert. “Important parts of measuring that performance include tracking revenues, expenses, and profit margins. The Dairy Cost Study is a program where dairy farmers provide farm information over the course of a year. This information is then compiled, creating a business analysis on the cost and returns of producing milk at their farm.”
The data of all the participating farms is then combined and averaged to produce a document called the Economics of Milk Production. Each individual’s information is kept confidential.
Van Biert says that this analysis of their farm is a tool to help identify and manage costs. “Farming is becoming more complex, and there is a need to go back to the basics to really know how your business is performing. It is important to know the details. Only once you have a complete picture of your business can you better manage its opportunities.”