There are many other ways to save time and effort on a micro dairy while producing premium quality milk for local customers. May 21, 2017 1 Comment. One little Jersey cow making five gallons of milk per day will require 15 customers to buy all the milk she produces in a week, and hopefully, an average of five of them will stop at the farm each day. USDA is an equal opportunity provider and employer. Their effort at building an Excel spreadsheet, dairy income statement for obvious reasons will be tailored to a typical dairy operation, but the principals will apply. Technological advancement has created more opportunities for farmers to develop a profitable business. Despite … In terms of time alone, that little bulk tank can save nearly $15,000 per year – and that doesn't even factor in the improved quality and flavor of the milk. SARE Outreach operates under cooperative agreement award No. Dairy Farming Financial Calculator . Farm fresh milk currently sells for $6 to $12 per gallon; total operating costs to produce that gallon will likely be $3 to $4 per gallon; if a micro dairy sells 100 gallons of fluid milk per week the gross income will be $600 to $1200, with production costs at $300 to $400. 2019-38640-29881 with the University of Maryland to develop and disseminate information about sustainable agriculture. Personally, I think a pipeline milking system is an essential piece of equipment on a micro dairy that can easily generate thousands of dollars per year in saved time. How 5 brown cows help micro dairy reach success. Like any other retail business, a micro dairy needs to be in a location that offers easy access to a solid customer base. A micro dairy is a business just like any other business: it should make money. Sustainable Agriculture Research and Education. *Though I only refer to cows in this piece, the same principles apply to goats, sheep, water buffalo, camels, etc., producing roughly the same amount of milk per day on a micro dairy. With a pipeline, the cleaning process is all automated. The high profit farms averaged $1,916 per cow in feed costs while the low profit farms’ average feed costs were nearly $200/cow higher. Sign up now and receive exclusive savings every 2 weeks! those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture or SARE. Pipelines also produce better milk, because it’s not exposed to air from the time it leaves the cows until it reaches the bulk tank. Small farms (earning less than $50,000 annually or occupying less than 180 acres) are now considered potentially lucrative as both rural and urban business opportunities. No one should have to pay more than $5000 for a good used system. I have tried to incorporate all possible aspects involved in dairy farming but due to application limitation few calculations can be expected in future version. Like other successful businesses, a micro dairy needs to sell a quality product. The milk needs to be delicious and has a good long shelf life, so everything on a micro dairy must be kept squeaky clean – even the cows. He is a fourth-generation farmer from Tennessee who dedicated all his life to his small dairy business. An owner probably won't make a living solely by operating a micro dairy, but significant profits can be generated. Read Steve Judge's new blog 'Milking Cows with a Pipeline' next! The easiest way to make money with a micro dairy is to sell fluid milk directly to customers at the farm or at farmers markets. But what is a micro-dairy? A solid supplemental income can be generated operating a micro dairy, but probably not enough income to support a family. For example, a small 50-gallon bulk tank costs less than $6000. That usually caps a herd at three to four cows, depending on how they’re managed. Entrepreneurs should consider ideas like bee farms, rooftop gardens, and microgreens when choosing among profitable … Every minute spent on a micro dairy deprives the owner of the opportunity to earn a second income or do other things they would like to do (known by economists as Opportunity Costs). b) Data from 2003-04 to 2008/09 is based upon Standard Gross Margin (GSM) typology . Today "time is money" more than it ever has been. Milking animals is so much faster, easier and fun with a pipeline compared to bucket milkers – just check out our "Morning Chores” video. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of … There is an art to producing high-quality, great tasting milk. Producing high-quality milk with a small pipeline and bulk tank on a micro dairy does make sense – not to mention dollars. Not bad for a $6000 investment. This is one of my future goals even if it's just a sideline income.