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Producer Spotlight - Towns Farms
How to stay relevant for 150 years:  put the team first

"Not long ago we had monthly team meetings. Now we are doing weekly conference calls, maybe 30 minutes or so. We don't need to reinvent the wheel. We just want to be focusing as a unit on the direction we're heading."  (MORE)

Management Message - Mike Wright, MBA 
Take our Quick Poll...and check out the Tip Of the Month
So what happened to Ohio State in the NCAA tournament? This was one depressed Buckeye when Ohio State did not make the final four. Anyway, take our new monthly Quick Poll on various dairy topics. This month's poll is on profit difference makers.  We'll give the results next month. Also, based on reader surveys, we're offering ouTip of the Month. And, read more about our brand commitment and what it really means.  (MORE) 
Dr. Curtis Harms

Technical Feature - Curtis Harms, DVM

Projecting, planning and budgeting to stay ahead 

Moving into the Spring of 2012 we know that milk price has softened with feed costs staying steady, putting more of a squeeze on margins.  The prudent producer is already looking ahead to third and fourth quarters and deciding what moves can be made to put his/her operation in the best position to survive into the next cycle. (VIEW PDF)

D. Kurzawski

Risk Management - Dave Kurzawski

Using Class IV and the products as a hedging tool

While many producers have forward contracted and in many cases traded Class III futures and options for their own accounts, the number of calls to our office to discuss Class IV contracts has picked up immensely over the past few months. (VIEW PDF 

 
Director
Global Research and Marketing

 

  

In last month's edition, we introduced you to Diamond V's corporate brand promise: The Trusted Experts in Nutrition & Health™. This statement embodies the spirit of our company and its research-based products.  In addition, I introduced you to key messages (business principles) that describe who Diamond V is today and the solutions we offer. Our first message illustrated Diamond V's long-standing role as a research-based company. To continue:

 

Key message #2:  Diamond V is a technology-based company.

 

Proof points that validate this message:

 

- Leader in microbial-based fermentation research since 1943

- Only company with a multi-stage anaerobic fermentation process

- Proprietary fermentation process delivers a unique product portfolio

- Stable products, not affected by extreme temperature or processing

 

We're grateful for the tens of thousands of professionals who have been reading Nutrition Line. We want to keep you as readers and, more importantly, make sure we always provide ways to create dialog and interaction. Thanks for your support of Nutrition Line!

 

Kind regards,
 
Mike

 

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Producer 
How to stay relevant for 150 years:  Put the team first

 

 

Who:  Mark and Pat Towns, Scott and Nancy Towns, Steve and Debi Towns at Towns Farms, Inc., milking 440 cows in a herd of 480. "The dairy, as it is today, was expanded in 1999," says Mark.

 

Where:  Janesville, WI

 

Cool stat: 150 year-old family dairy farm. 

 

The Team comes first:  Consultants retained by the dairy have stressed that the Towns brothers and spouses all collaborate closely in owning and running the farm. Towns' parents are involved as well.Towns works with an outside nutritionist. "We don't have enough acres to produce all of our feed, so we also rely on our nutritionist for purchasing advice, Mark says.

 

Towns also works closely with a financial consultant, "but he's more than that," says Mark. "He helps us with benchmarking, both with costs and with performance numbers of the herd, so we see areas that are working and areas that need attention."

 

Their bank lender is also part of the team. "We meet quarterly, so we all understand the direction we're headed," says Mark. Also, Diamond V Regional Sales Manager Kristy Pagel is part of the team. "We love her HR background and knowledge of the industry," says Mark.

 

Why such emphasis on The Team?  "Ever since the expansion we always thought our cows should be doing better. The team has evolved over the past three of four years," Mark says. One simple example of team-driven changes is the conversion from mattress bedding to sand. "We have an emphasis on cow comfort, and it does make a difference."

 

Communication is key: "Not long ago we had monthly team meetings, says Mark. "Now we are doing weekly conference calls, maybe 30 minutes or so. We don't need to reinvent the wheel. We just want to be focusing as a unit on the direction we're heading."

 

On the future: "We want to upgrade the herd," says Mark, "but we also need to look at our management and ownership succession plan." Mark says the current family ownership team may not all be in place five to ten years from now. "That (ownership transition) will impact a lot of what the future holds, especially the investment of money and resources."

 

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Tip
Tip of the Month  

Calculating IOFC

 

Income Over Feed Costs (IOFC) is an efficiency measurement. IOFC is easy to compute: simply subtract the dairy's or a pen's feed cost from the value of the milk produced. What's left is a simply "gross profit" from your feed investment. Where Feed Efficiency is a physical measurement, IOFC is a financial measurement. Neither replaces general business accounting. They simply form a snapshot of how hard each pound of feed is working.  

 

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