This is a question I recently asked a new client of mine. Please allow me to explain my thought process. During our initial discussions and analysis, we had discovered several areas of his operation that needed some ‘fine tuning.” In other words, they were unintentionally off course in terms of their costs. Please take my word for it. They were way too high, in comparison to other producers.
To provide you with some background, his production was solid, and most of his expenses were admirable in comparison to industry guidelines. However, his Feed Expense and Cost of Supplies were both well above where they should have been. I had originally assumed that they were two separate challenges. However, as it turned out, they were both traced back to a common source.
Now, understand that any nutritionist can run into these same challenges and then need to make some changes. The difference here was that his current feed advisor wasn’t willing to make the necessary changes. With the guidance of another nutritionist, this producer lowered his Feed Cost by $0.40/cwt and decreased his Supplies Cost by $0.10/cwt. Now, this change generated $10,500 of reduced costs per month. After paying the new Nutritionist $1,000 per month, his bottom-line return was still boosted by $114,000 per year.
Going back to the original question, “When Will You Find Time?” your very survival depends upon this type of thinking. Based upon my experiences of the past 22 years, it will make a huge difference. If I can assist you with this process, please contact me at firstname.lastname@example.org or 209-988-8960.
Editor’s Note: To listen to John’s recent interview on DairyVoice Podcast, click below: