Dairy management: investing in a second unit

There’s no doubt that with good technical performance there is a good return from expanding milk output, even on a second unit.

Aidan Brennan

15 June 2017

Dairy management: investing in a second unit

Drainage is a good long term investment

This week we go into detail on the pros and cons of second units. The thing to remember is that return on capital is maximised when capital expenditure is minimised and net profit is maximised.

Too many farmers make the mistake of over capitalising farmyards and milking facilities, to the detriment of their long term ability to create wealth and free cash. Yes, farm yards and milking parlours need to be pleasant and enjoyable places to work, but there are ways of doing this without spending a fortune. The best approach is to spend all the capital required up front and get the farm to 100% as fast as possible. While this increases borrowing in year one, it improves subsequent cashflow.

Second dairy units: the pros and the cons

Hope for those battling high cell counts

Dairy management: weather

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