According to the DairyCo (UK) Milkbench+ report, the relationship between cost of production and profit is much stronger than many dairies realize. The report states that cost of production is the most significant factor in determining profit.
Milkbench+ analyst Karolina Klaskova says: “Through robust data and statistical analysis we see that the relationship between cost of production and margin is strong.” Ms Klaskova acknowledges that the findings are challenging. “The report raises many issues, including just how difficult it can be to make a profit from milk production,” she says.
How does a foreign company gain access to such a large food market like China? Build infrastructure and train people in China to create and build supply chains. Nestlé SA is doing just that with the Chinese dairy market by spending millions of dollars to teach farmers how to care for their cows.
Nestlé will guarantee bank loans for [Chinese] farmers to buy more cattle. The company also plans to set up "cow bases," at which small-scale farmers will pay to have their cattle professionally managed.
This strategy will help Nestlé with its supply needed to create its branded dairy products like Carnation, Coffeemate, and Nido for children.
How can you utilize social media in agriculture? What steps should you take when general media portrays farming operations in a negative light? This webinar offers some guidance, tools, and resources to help. Webinar from Dairy Management Inc. and myDairyToolkit.com, December 14, 2011.
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