Expert: Karin - 11/13/2011

Question
what one out of beef or dairy  do you think has more profit. More advantages and less disadvantages has a better diease control in the production system as i am unsure for what one to so on uncles farm.

thanks

Answer
The dairy sector has more profit, no doubt, but it is also the sector where disadvantages outweigh advantages:

1. Start up costs are far higher than what's required for a beef operation because you need far more buildings, equipment, machinery and human labour, not to mention over a million dollars in your bank account just to meet start up costs for the first two or three years.
2. Labour is intensive, as cows need to be milked twice a day, feed has to be rationed and brought to the cows during times when you can't put them on pasture, and equipment needs to be run to process milk, work fields, help with milking, etc.  You yourself are looking at a 18 to 20 hour day 24/7/365 even if you have the help needed.
3. Diseases are more prevalent and need to be managed in the dairy sector: dairy cows are far more likely to get mastitis, milk fever, ketosis and a host of other diseases than beef cattle are.  Mastitis is a common problem with dairy cows no matter what time of the year it is.  However, both beef AND dairy production systems can have just as much a problem with disease management as the other.  It's how you manage herd health and time the times to vaccinate for the diseases that are prevalent in your area.
4. You have to plan and manage breeding, calving, drying up periods for your dairy herd, if you need to have the cows producing milk all year round.  You have to hire an Artificial Insemination technician, record and predict when each cow will calve because you sure as heck isn't going to be raising a dairy bull with your herd (they are VERY dangerous to keep around, btw), record what bull a particular cow is bred to, have personelle responsible for feeding the calves, separate cows that are drying up from those that are still milking (not to mention know which cows are ready to be dried up and which are not), house and breed heifers you are going to keep, the list goes on.  Also note which cows and heifers to cull and what you need or have to cull them for.  
5. You also need to have someone keep financial and accounting records of everything that goes in and out of the farm.  If you want to run a business for profit, you can't be skimping out on the accounting and financing part of things.  If you do, you will be going bankrupt or worse really quick.

With a beef system, especially if you're going commercial cow-calf and not purebred, your start-up costs are not going to be as high, you won't have as much disease issues to worry about, especially if you are consistent with your herd health program.  You still have to plan and manage your breeding, calving and weaning times, but, thankfully, not on an individual basis.  You also need to cull those that are not going to be productive for your herd. Accounting information and recording is very important in beef production systems as beef systems are.  

The thing you REALLY need to understand that if you are looking for something to gain a profit in, you should really not consider raising cattle, or any other agricultural-type operation.  You won't get rich quick on raising cattle (and that includes both beef and dairy).  You have to be in it because you want to be in it: you want to raise cattle as a way of life, not just a business.  But of course, if you want to make some sort of profit you still need to run it as a business.

Though I don't know much about what's in your bank account, what kind of facilities your uncle has or what sort of knowledge you still need to glean from raising cattle (both beef and dairy), I don't want to sound like I am discouraging you.  However, it does help to give you some advice as to what to expect and to what to not be surprised about when you start up.

Start small with a herd you can easily manage to get your feet wet in.  Get only a few cows (make sure they are GOOD sound cows) that are experienced breeders and are going to be easy for you to work around and with.  Buy a few more cows once you're comfortable enough and/or keep a few of the heifers that you get from your foundation herd.  Make use of AI or lease a bull when you start up and have to breed your cows, as the costs of keeping a bull outweigh the benefits of keeping a bull for such a small herd.

Make sure you have your fences, feed/mineral, water sources, handling facilities, equipment and necessary buildings or shelter before you get your animals.  Make use of the three R's to save on expenses, and go to auctions to get your necessary equipment and fences.  

Oh, and don't forget about managing what's under your feet either. :)

-Karin