Monday, January 13, 2025

Genetic “value” or Profitable “least cost” production - which has become your breeding focus??

 

As managers, we tend to be consistent in our thought process for selecting inputs, whether for our crop farming or our animal feeding.    When it comes to “genetic selection” we will generally follow in the same path we follow as farmers.

High input technology management of dairy farms assumes that maximizing yield brings us profits.    It may come as a surprise that, according to Economists, when you are producing a “commodity” product, profits flow to the least-cost producers who “optimize” their production, rather than to volume producers who seek that maximum incremental yield.

Business is not that complicated.     Profit is what pays the bills and sustains your operation.     Higher milk yields come at a higher increment of added input costs,  and there is always a point where profit in that increment disappears.

 

Mich Livestock Service Inc.    “For the Best in Bulls”  and the forages that will feed the cows.
PO Box 661    Ovid,  MI  48866      ph (989) 834-2661       email “greg@michiganlivestock.com”

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