What should a dairy producer do when they haven't made profits for several years, and the bank refuses to renew their loan, DairyGlobal asked? This was a problem that Pauly Paul, from Complete Management Consulting, faced when called to a 1,500-cow farm a few years ago.

As a consultant in dairy product management, specializing in operational efficiency, increasing dairy farm profitability, and finding unconventional ways to reduce costs and immediately increase cash flow, Pauly quickly identified three key management areas to make this dairy production profitable and get back in good standing with their lender.

Adjusting the milking parlor flow

In Pauly's assessment, he wanted to find ways to add more cows passing through the milking parlor without adding labor costs. By making some adjustments and workflow modifications, he was able to add a new rotation of cows and helped workers become more efficient with their time.

Reformulating nutrition

In tough times, you don't always need the best of the best. In the feed department, Pauly worked with the nutritionist to reduce feed costs and increase the quantity of fed forage. This helped reduce costs and provided a bit more expense cushion.

Improving the breeding program and heifer replacement

One of the areas with the greatest impact that Pauly could assist in cost reduction was the breeding program. For this dairy, it made the most sense to raise everything for beef and eliminate heifer replacement expenses. The dairy producer could then purchase replacements back before refreshing with the proceeds from black-calf sales.