In the dairy industry, nickels and dimes make a big difference over time. Dairies have the unique ability to compare their financial performance against their production numbers, giving them information on a per-hundredweight basis.

The past 18 months have been tough on many dairy operators. Throughout this time, we have participated in many interesting conversations where operators are more focused on their future rather than the current environment.

The current operating environment for the dairy industry could be classified as “challenging.” Every day, dairy owners are asked to produce more with fewer resources. Labor shortages, stagnant milk prices, increasing operating costs and the current political environment create several issues dairy operators must be educated about and be able to address.

On a regular basis, we meet with clients to review financial and statistical information. Through these meetings, we have the opportunity to analyze many different dairy operations. Although there are several different operating philosophies, there are also common factors we observe in profitable operations.

As the most exciting part of running a dairy operation, I know you’re dying to hear about how to do more with your monthly and quarterly financial statements. Of course, this may be a small exaggeration.