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To become successful in this business one should have a proper business plan with a correct budget guide.These two factors are very important before you step into the field of dairy business.
Moreover, in the case of weather and climatic conditions, taking the appropriate steps in a timely manner when it comes to the preservation of fodder would be ideal.
Hence, the primary factors that influence success in dairy farming are in the control of the farmer, and they include his dairy production and management skills, as well as those of his workforce.
A successful dairy firm will work towards an accurate response to the market needs.
The management team will carry out formal engagements within the markets to ensure the business operations are protected from short-term and rapid oscillations in terms of quality, pricing, and quantities.
These two factors also relate to your management knowledge and skills as the farm manager or owner.
In terms of the external factors, the most significant ones include the dynamics in the market in terms of the price levels that are paid for both raw and processed milk and the resultant products.
It also incorporates the costs of raising all heifers born in the premises from birth to calving.
It works with milk production of 20 liters for each cow for 300 days per year with a sales price of Ksh. Notably, the 20 liters figure may be a bit higher than the Kenyan smallholders’ current average.
Additionally, this implies investment in fodder production within the farm, efficient preservation, and the relevant farm equipment such as the chaff cutter.
For success in dairy business, the farm should engage the right individuals for the right roles and incorporate the use of Standard Operational Procedures (SOPs) in routine operations.