Robotics have been around for a while, but are they a good investment? Iowa State University Extension Dairy Specialist Larry Tranel has a two-word answer for that question: It depends.

We are in a fourth year of depressed milk prices, the longest span we’ve experienced in the last 20 years. Dairy farmers must concentrate more than ever on expense reduction and enhanced profitability.

We are all feeling the pinch (or gut punch) of low milk prices these days, but the blow doesn’t have to be as bad as it seems. In fact, it is actually possible to make money right now at a Class III base price of $14 to $15 per hundredweight (cwt).

Cost of production (COP) is one of the most important metrics to evaluate a dairy operation’s financial status. However, when discussing COP, people typically refer to cash flow and include purchased feed, labor, principal and interest payments, and any cash capital purchases.

Genske Mulder & Company LLP has produced averages of our dairy clients’ profit and loss reports on a quarterly basis for quite some time. Our clients, as well as others in the industry, have found these very helpful as benchmarks with which to compare their own operations.

Since other feedstuffs are typically priced to reflect the corn and soybean market, the cost of almost all feed ingredients has increased. Since feed is the largest single cost in producing milk, most producers review their feeding program to see if there are ways to reduce these costs. Any changes made to rations should only occur after a thorough review of the feeding program and must take into account the impact a change could have on other aspects of the overall operation.