Tuesday, February 17, 2015

Open A Small Business Dairy Company

Dairies are complex operations.


Dairy farming can be a rewarding and lucrative business for a patient self-starter who enjoys the outdoors, the company of animals, and producing something tangible and valuable. But, as old Vermont farmers often say, if it's not one thing -- it's an udder. Dairy farming carries extra responsibilities, long working hours, and few vacations. The market for milk and other dairy products can fluctuate wildly, and once started, it's economically and emotionally difficult to simply walk away from the job.


Instructions


Producing Milk


1. Be an apprentice. Setting up a dairy, even a small one, requires an enormous amount of knowledge -- about livestock, about dairy products, about feed, and about a thousand other details. Find a nearby dairy farmer and ask if you can help. Dairy farmers love free help, and it's the quickest path to learning whether or not your interest in starting a dairy is a passing infatuation or something you really want to do with your life.


2. Find the right land. Cows will need plenty of pasture, and a substantial field for hay will cut your feed costs tremendously. On the other hand, sheep need plenty of grass and goats can subsist on rockier scrub land. It helps if your land has a year-round supply of fresh water and can be easily fenced into sections. Find out about local predators, and consider getting guard animals, such as a Great Pyrenees, border collie, or llama.


3. Look for a farm that's already designed for dairy and has appropriate buildings. You'll need a barn with a sanitary place to milk your livestock, as well as plenty of separate stalls. A dairy barn should also have electricity, and hot and cold running water. You'll also need a place in the barn to store lots of hay and grain. Check with your local county agent if you have any questions about the suitability of a barn for a dairy operation.


4. Figure out what you want to produce. For example, is it important to you to produce smaller quantities of organic, antibiotic-free milk, or do you want cows that are bred to produce more milk? Do you want a niche product like sheep's cheese, or maybe goat's milk yogurt? Ask neighboring farmers about different breeds of livestock. Spend as much time as you can learning about your animals -- each one will have its own personality.


5. Buy the equipment you need, and nothing more. A new bulk milk tank may look shiny, but you can find used ones for a fraction of the price. Likewise, brand-new tractors, hay balers, pickup trucks and cattle trailers look impressive but will remove money from your bottom line for many years. Have your county agent check out your equipment to be sure it complies with state and federal dairy regulations.


6. Consider adding value to your product. Milk is a valuable commodity, but its price can fluctuate. Value-added products, such as cheese, butter and yogurt, command a premium at farmer's markets and other places where local-food advocates shop. The cost of establishing a value-added business is only a small fraction of the overall cost of establishing a dairy.

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