Major profit factors in dairy management

The continuing shift of market milk production from a farm-oriented operation to a factory-type enterprise increases the importance of making management decisions based on factors other than feed production and family labor. Selection, economical purchasing and wise use of feeds will always be important profit factors, since feeds make up more than half the cash cost of dairying in California. Labor costs may have a major influence on profits in smaller herds, but are usually of decreasing importance as herds become larger and certain efficiencies are realized.