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Thread: expansions

  1. #21
    Join Date
    Mar 2011
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    De Pere, WI
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    That said, you can mechanized a lot of things and get efficiency of scale with smaller farms and more of them... picture 8 robot dairies (or something like that) spread around with centralized maternity, centralized heifers and centralized back office stuff like accounting.

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    DiederichFarm
    "You are only as good as your next success, not your last" Sir Jock Stirrup

  2. #22
    Join Date
    Jul 2015
    Location
    Orient, SD
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    855

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    Quote Originally Posted by whistle pig View Post
    What is it at your location and why aren't you there? Should be easy to show a banker...,,

    Here, the optimum size seems to be double your current size every 5 years or so.
    I think Dr. D said it right, there's more than one way to skin a cat. Where I am, South Dakota, we just cracked 100k cows not that long ago. Most of the new operations coming in are either larger 5k cow dairies or smaller robot dairies.

    I just got here a couple years ago and it takes time to build up your business, as you know.

  3. #23
    Join Date
    Feb 2013
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    1,262

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    Sure, I understand that.

    My point is by the time either of you get to 4-5,000 cows the optimum efficiency will have moved to 20,000 cows....,

    I believe the efficiencies of scale diminish quickly once your cost of living is covered.

  4. #24
    Join Date
    Jul 2015
    Location
    Orient, SD
    Posts
    855

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    Not necessarily. Optimum efficency will vary. For one operation it may be 3k, another 5k, another 240 cows. It all depends

  5. #25
    Join Date
    Mar 2011
    Location
    De Pere, WI
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    3,548

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    Quote Originally Posted by whistle pig View Post
    Sure, I understand that.

    My point is by the time either of you get to 4-5,000 cows the optimum efficiency will have moved to 20,000 cows....,

    I believe the efficiencies of scale diminish quickly once your cost of living is covered.
    Some of it is that you add cows if you make money too. You are right though...no matter what, achievable efficiency is a moving target

    Sent from my SM-G930R4 using Tapatalk
    DiederichFarm
    "You are only as good as your next success, not your last" Sir Jock Stirrup

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