Lost Revenue

Challenge:  Clinical mastitis cases had been increasing on a mid-sized Wisconsin Dairy and as a result had not been receiving their normal milk quality bonus of $.25/cwt.

How We Helped:  Our team discovered that milk quality issues were, as is often the case, caused by protocol drift in the parlor.  In conversations with the owner and vet language barriers were identified as the major issue.  The dairy had previously hired a bilingual milker training consultant but had stopped due to their $700/day fee.  Curious about the return on spending $700 we looked at the loss of income that resulted from losing the quality premium.  For this dairy, on an annual basis, we calculated that investing $2800 ($700 per training x 4 trainings per year) could increase milk sales by $43,750.  This would be a return of over 14:1.  

It was decided that quarterly bilingual milker trainings would be scheduled for the next four quarters.

Value to Producer:  While it took a while to clean up mastitis cases milk quality steadily improved and $.25/cwt premiums returned.  We didn't see the expected 14:1 return but did add $27,000 in milk income by the end of year.  A still respectable return of 8:1 was obtained on the $2800 invested in milker training.


Family Struggles

Challenge:  Four brothers and their parents were increasingly struggling with discord within the family.  Some were angry, some disappointed, some saw no problems. 

How We Helped:   Two team members sat down with the father to gain an overview of their situation, gather relevant business history, and learn his objectives.  We proceeded to interview each of the brothers individually to learn their personal and business objectives.  This revealed that one of the brothers was interested in machinery buying and selling and wished to leave the dairy.  As you can imagine this came as quite a surprise to the other family members.  With this newfound knowledge arrangements were made to buy out that brother and transition his responsibilities to others, including a new hire.

Value to Producer:   Relationships within the family improved dramatically, a renewed sense of direction was established by the remaining brothers, and the exited brother, with great relief and anticipation, began the process of starting their new business - with full family support.  Years later the family reports continued successes all around.


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