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See event listings and more articles in this edition of Agri-News: April 19, 2022 issue

Dairy Cost Study

“Enrolment is still open for the 2022 Dairy Cost Study program,” says Pauline Van Biert research analyst with the Alberta government. “Consider this a prime opportunity to better understand the cost of producing milk at your farm.”

“A prime objective of any business is to have a good understanding of how well it is performing. Important parts of measuring that performance include tracking revenues, expenses, and profit margins.”

The Dairy Cost Study is an annual program where dairy farmers provide farm information over the course of a year. This information is compiled, creating a business analysis on the cost and returns of producing milk at the farm. This analysis of the dairy enterprise is a tool to help identify strengths and weaknesses and start the thought process and conversation on how to manage costs.

“Farming is complex, and there is a need to go back to the basics to really know how your business is performing. It is important to know the details. Only once you have a complete picture of your business can you better manage its opportunities. Having your own numbers in front of you helps assess real and possible farm management options.”

Van Biert uses these questions as some examples that the Dairy Cost Study final farm analysis will help answer.

  • How will the dry conditions of 2021 and increase in feed, fuel and electricity prices affect my cost of production?
  • How will the increase to farm gate milk price affect my income?
  • My total vet costs are higher than I thought. Why? What can I do about it?
  • How much are my cows producing? Is this satisfactory, or should I try to better my cow performance or buy some more cows?
  • What is my cost per kilogram of butterfat?

“Being in the program and receiving your detailed farm analysis is free. The cost is the investment of time, and the payback can be huge.”

Van Biert adds a current participant found that the time invested in the program is well spent and the results are useful when making decisions. This participant has been in the program every year for over 10 years and continues to get value from the analysis.

“Whether you join for one year or stay for many, you will get that value too,” says Van Biert. “I can come out to the farm and explain the details. We make it as easy as possible to provide the requested farm information.”

Participants in the program are also contributing to industry. The data of all the participating farms is compiled to produce an Alberta benchmark document called the Economics of Milk Production. The industry needs robust data for policy decision-making and farm business risk management purposes. The more participants, the more representative this document will be.

Find out more and sign up for the 2022 Dairy Cost Study.


For more information, connect with Pauline Van Biert at 780-415-2153.

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