Agribusiness Management in Utah Dairies

This thesis outlines the theoretical factors impacting dairy profitability. The theoretical portion includes: a general review of production and profit maximization theory, a review of related studies, and an outline of the variables impacting dairy profitability. An empirical study follows using data gathered from three applied technology centers in Utah in conjunction with dairy herd improvement production records for the farms where these data were available. The empirical section includes a synopsis of the methods and procedures used to collect and analyze the data. Regression analysis was used to determine the significant production and financial factors influencing returns per cow; returns to labor, capital, and management; and return on assets. The results indicate that both revenue and cost variables are significant factors of dairy profitability as are various financial measures. The overall most significant variables were dollars of milk sold, price of milk, labor costs, feed cost per cow, and herd size