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Shrink impacts your balance sheet

Thu, 01/29/2015

In difficult economic times, we become better managers. Shrink is one area where we can tighten our belts.

By Amanda Smith, Hoard’s Dairyman Associate Editor

Dairy rations are balanced on the cents per cow that an ingredient will add to or cut from a feed budget. Yet, if we watch a ration being mixed, it’s not uncommon to see finely ground feed ingredients blow away with the wind. What if we viewed this dust and debris as more than just a cost of doing business?

At its most basic level, shrink is the difference between the amount of feed delivered and the amount that is fed, noted Mike Brouk, with Kansas State University, at the Leading Dairy Producers Conference. Shrink is a potential profit opportunity on all dairies, but it’s not an area destined for improvement unless it is measured. Read more

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