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Study aimed at helping dairy producers

A Dairy Cost Study is intended to benefit Alberta farmers, including those in Ponoka.
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Alberta dairy producers are encouraged to take advantage of a free business analysis program being offered by the provincial agriculture department that uses the producer’s own numbers.

A business analysis mechanism is once again being offered to Alberta dairy producers.

The Dairy Cost Study, through Alberta Agriculture and Forestry (AF), is designed to provide a dairy specific farm business analysis, similar to the Agri-Profits program the department operates.

“With changes in today’s environment and economy, there seems to be renewed interest in building business plans, following cost of production and getting adequate returns for that production,” explained Pauline Van Biert, an AF research analyst based in Edmonton.

“The Dairy Cost Study is a business analysis program that provides economic analysis and farm business management information to dairy producers using their own numbers.”

The study, to begin this month, will provide producers with reports on the current year with farmers filling in their own monthly sheets. A farm visit is also made to any producers who are new to the program.

“(The study) breaks down the whole farm activity and costs right down to the cost of producing milk,” stated Van Biert.

“Results are reported as total costs, costs per cow and costs per hectoliter sold. Dairy farmers can easily see how much investment they have made, costs incurred and revenues received for the milk they are producing.”

The program also provides provincial benchmarks, with the data from all participating producers used to the establish the benchmarks, which can be used as reference points to see how farms compare to other operations.

“Producers participating in the program tell us that they have become more effective at analyzing, budgeting, planning and they are making better management decisions,” she added.

“They understand what their long term average costs are, can identify targets for what their costs should be and are more effective at identifying business options and opportunities.”

There is no cost to be part of the study, while the return on the producer’s time investment will produce an analysis of their own operation with their own figures to help make profitable management decisions.

Producers have until the middle of this month to enroll in the study. More information and to register can be found at the AF website (http://www.agric.gov.ab.ca) or by calling Van Biert at (780) 415-2153.