The goat dairy business analysis tool was developed to support new and existing goat dairy farmers who sell their milk in bulk to a processor. 

This tool includes pre-developed assumptions based on production levels and expense categories that were compiled from a variety of academic, industry and farmer sources. These assumptions provide information for criteria that, when calculated with the tool, will compute the following:

  • Production levels
  • Monthly revenue from buyers
  • Monthly counts of herd size and composition
  • Other revenue streams
  • Expenses

Users can also input their specific fixed costs including mortgages, leases, equipment and other overhead.

Outputs include a modified 12-month profit and loss statement, a register for necessary capital investments, and a modified cash flow statement which displays the effects of the enterprise on a farm’s finances.

Part 1 – Production and Cash Flow

This section shows all production levels for the milking herd. Users will be able to view daily, monthly and yearly production levels, and calculate what their milk checks would look like based on a per hundredweight (cwt) contract with a buyer.  This section also outlines many variable expense assumptions that are based upon the head count of the herd. Some variable expenses and all “Fixed Expenses” are left blank. Users can enter their farm-specific information into the calculator, or simply leave it out.

Part 2 – Capital Investments

This helps farmers estimate all of the major investments that would be needed in order to start a goat dairy. Costs for buying a herd, machinery acquisitions, housing, equipment and milking parlor costs are all considered.

Part 3 – Cash Flow Effects

This section gathers information about all operating and investing activities and allows the user to add information from financing activities, off-farm income and personal activities. The main purpose of this section is to provide the user with a visual representation of how cash will flow into and out of the business during the year.

Contact Zachary Smith, 802-656-7624 or for more information.