A methodology for analysis of the technological and organizational alternatives available for drylot dairy operations

The. demand for milk and dairy products in Arizona is expected to increase due to an increasing population. Arizona dairymen can meet this increasing:demand .with higher production, per .cow and/or with more  cows. Herd expansion is typically limited by the equity and borrowed capital available for investment in land, cattle and facilities. This thesis discusses the technological and organizational alternatives available for herd expansion and develops a method for, a dairyman, with a capital constraint, to evaluate the alternatives and decide on a combination that is best for his situation.

The technological, alternatives are the various types and sizes of milking parlors available for group handling of cows in large herds, and;the mechanization that can be incorporated to reduce milking, labor. The organizational alternatives are herd replacement strategies (raised purchased.or leased cows), milking-frequency and milking parlor usage. A methodology for- evaluating these alternatives involves comparison of the graphic display of the financial factors for each mix of alternatives. The example of a typical"expansion situation shows the organizational alternatives:of purchased cows and three times a day milking to
be the most profitable.

The example illustrates the complexity of manual manipulation of the pertinent financial factors. An exhaustive analysis of all. alternatives with various cost/price ratios would necessitate a computer program.

AZU_TD_BOX147_E9791_1981_35.pdf (4.63 MB)

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