How to Start a Small Dairy Business in Michigan
There are a lot of dairy cows in Michigan, and unlike in some states the number has increased in recent years. Dairy farming represents an important part of the Wolverine State's agriculture industry, accounting for nearly 10 percent of Michigan's total agricultural output of $60 billion in 2007. Dairy farming can provide a more lucrative income and return on investment per animal than other types of livestock farming.
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Instructions
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Gain experience by working on a dairy farm before beginning your own operation. Dairy farming requires long hours of hard work. The milking schedule is restrictive. Know that you'll be happy with this vocation before making an investment in cows and equipment. Many beginning dairy farmers rent equipment and land to leverage their investment and build up equity in their dairy herd.
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Learn from the experiences of others. Attend classes in dairy management and operations. The United Dairy Industry of Michigan (UDIM), the parent organization of the American Dairy Association and Dairy Council of Michigan, is an excellent resource for milk marketing strategies, herd management and development. The UDIM website provides useful links for the start-up and experienced dairy farmer.
United Dairy Industry of Michigan
2163 Jolly Road
Okemos, MI 48864
(800) 241-MILK
(517) 349-8923
udim.org -
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Join the Michigan Milk Producers Association. The MMPA offers insurance against loss of dairy income, laboratory testing facilities, and education and informational support. Establish sanitary procedures according to the MMPA standards. Secure the required state licenses and inspections of your milking parlor and dairy facilities. The Michigan State Department of Agriculture advises, " If you want to sell raw milk for processing into any Grade 'A' milk or milk products you are required to have a Grade 'A' Dairy farm permit, regardless of the size of the farm." Contact the department in Lansing (800-292-3939) for more information.
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Determine a market for your product. Milk is perishable and must be moved quickly. Michigan state lawmakers recently passed a bill that allows the sale of unpasteurized milk by small dairy farmers. Consider taking advantage of the growing market for organic products by making your farm organic. Research your competitors. Know how much milk is being produced in your area so you can plan to compete n this market.
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Calf sales increase dairy profits. Purchase the best milk cows your budget will allow. Success depends on milk production. Start with a small dairy herd (50 to 75 cows), until you gain experience and knowledge. Acquire cows with a proven genetic heritage of high protein and butter fat production. The higher the protein and butter fat content, the more you will be paid for your milk.
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Establish a dependable source of feed for your cows. You can buy feed from third-party suppliers or you can grow your own. Compare costs to determine which method is most productive for your start-up operation. (Although raising your own may seem cost-effective, time and funds spent on raising feed may be better invested in herd development.)
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Purchase herd management software. You must keep accurate records of the milk production of each dairy cow. Over the past decade milk prices have plummeted. It is imperative that cows produce enough milk to make a profit. Cows with consistently low production should be replaced with cows that produce the volume required for profitability.
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References
Resources
- Photo Credit Cows inside a cowshed image by Scott Latham from Fotolia.com milk image by Ewe Degiampietro from Fotolia.com baby cow image by green308 from Fotolia.com
