An Analysis of How Dairy Farmers Divide Their Time among Twelve Key Management Areas and Farm Profitability
MetadataShow full item record
The relationship between the time dairy farm managers spent on twelve key management areas and dairy farm financial performance was analyzed. The twelve key management areas analyzed were (1) milk quality, (2) milk quantity, (3) reproduction, (4) cow comfort, (5) nutrition, (6) reducing the incidence of metabolic disorders, (7) dry cow comfort, (8) calf management, (9) financial records, (10) financial management (11) crop production and (12) human resources management. Studies in the past have analyzed the factors that affect farm financial performance. However, these studies have never looked at the breakdown of manager hours spent on the factors and how that affects profitability. A multiple regression analysis was performed using a best subsets regression to determine the variables to include in the model. A p-value<0.05 was considered significant. The time managers spend on milk quality, milk quantity, reducing the incidence of metabolic disorders and financial management had a negative relationship with net farm income without appreciation. Time spent on cow comfort, nutrition, dry cow comfort, calf management, financial records and human resources management had a positive impact on net farm income without appreciation. In this study, time spent on reproduction and crop production was not statistically significant and therefore not included in the final model. The results of this study will help dairy farm managers structure the areas they focus on in order to improve farm efficiency which will in turn lead to an increase in financial performance for the farm.
dissertation or thesis