Saturday, January 15, 2005
IRM Production Benchmarks for 2004
One of the most powerful management tools available to ranchers is the benchmarking his herd's production facts against the average production facts of a set of benchmark herds. This table presents my last six IRM Cost & Return Analyses and the benchmark averages for these six herds. None of these herds had Herd Performance Records.
When you benchmark your herd, you first look for your herd's strengths designated by those Production Facts where your herd beats the average of the benchmark herds.
Second, you look for those Production Facts where your herd is beat by the average of the benchmark herds. This, then, identifies some weaknesses in your herd's production and these become your bottleneck(s) to profits. Your management goal is to remove these bottlenecks one at a time. As each bottleneck is removed, your herd's profit goes up.
Then, next year we conduct another IRM Cost & Return Analysis of your herd, and again benchmark your herd against the rest always looking for bottlenecks to profitability. Once again, one or more bottlenecks are removed and profit again goes up.
When you benchmark your herd, you first look for your herd's strengths designated by those Production Facts where your herd beats the average of the benchmark herds.
Second, you look for those Production Facts where your herd is beat by the average of the benchmark herds. This, then, identifies some weaknesses in your herd's production and these become your bottleneck(s) to profits. Your management goal is to remove these bottlenecks one at a time. As each bottleneck is removed, your herd's profit goes up.
Then, next year we conduct another IRM Cost & Return Analysis of your herd, and again benchmark your herd against the rest always looking for bottlenecks to profitability. Once again, one or more bottlenecks are removed and profit again goes up.
# posted by Dr. Harlan Hughes @ 7:30 AM 
