The dairy sector, like many commodities, is going through some major changes. Ontario currently has 7,700 producers with the average herd size approximately 50 cows. New barns being constructed are mostly free stall with capacity to house and milk over 100 cows. As a guide, if you're a candidate for expansion, your current equity should be relatively high and both production efficiency and cost control should be above the provincial average. Anyone planning to make a long term commitment to the industry must start by sizing up their current business .
Current performance is often a good measure of future performance.
To help with this process, review the four major factors that can influence survival and profitability. Production Efficiencies Current production management should be at or above the provincial average. Identify bottlenecks restricting intake and correct them. There is a tremendous range in cost of production to produce a litre of milk. Low cost producers will be better positioned for the outcome of future trade negotiations that may alter the price of milk.