New dairy goat cost of production study released; shows feed to be greatest expense

Thursday, July 16, 2015

by SUSAN MANN

Feed is the largest expense for dairy goat operations, accounting for 31 per cent of overall expenses in producing milk, according to a new cost of production study by Ontario Goat.

The second biggest cost is interest debt at 8.7 per cent while labour is third at 6.4 per cent. The study released Wednesday also revealed the cost of production for a standard litre of goat milk is $1.37.

This is the first time the industry has had a cost of production study done, says Ontario Goat executive director Jennifer Haley. “We can’t just look at this and say this is the be all and the end all. This is just one snapshot in time.”

What’s important about this study is it’s specific just to the goat operations on the farms, she notes. The study “separated out other ventures on the farm or any kind of off-farm income.”

She says the study shows the industry is in a growth and development phase.

“Lots of other livestock sectors have had huge (government) investments over the past 30, 40 years to get them where they are today,” she explains. “What we see in this cost of production study is the goat industry has self-financed any growth that it has had through its own investment.”

The cost of production study is based on a random sample of 2014 data 2014 from 14 licenced Ontario dairy goat farms. A third-party accounting firm collected the data from the farms.

Haley says the farms varied in herd size, feed management systems, barn types and milk marketing methods and are statistically representative of Ontario’s licenced goat producers.

Haley says some people might say the cost of production number is too high “but I think it’s reflective of investments that producers are making back into their farm.”

Ontario Goat is hosting workshops in the fall where the cost of production will be discussed. The organization also plans to develop ideas on how the industry can reduce its costs of production and increase productivity. Furthermore, it plans to find ways to get government funding for research in various areas, such as dairy goat nutrition so feed costs can be reduced.

The cost of production study will be updated this year, next year and in 2017. The study was funded by Ontario Goat and Growing Forward 2, the national agricultural policy framework. BF