Profit or loss in the dairy enterprise is dependent upon yearly production
per cow and degree of capitalization. Higher producing cows convert feed into milk
more efficiently. Cows of similar body size have similar maintenance requirements,
regardless of level of yearly production. The successful dairy enterprise must
establish yearly production goals needed to satisfy cash flow requirements and then
implement management procedures to obtain maximal yearly milk per cow on the
number of cows required to meet the herd's goal.