Holstein.clickHolstein dairy, from calf to bulk tank

Home / Business & Profitability / Labor Management

Labor Efficiency in the Parlor and Barn: Where the Hours Actually Go

Labor is usually a dairy's second-largest cost, and most of the hours disappear into a few predictable tasks.

By the Holstein.click editors · 4 min read

On most dairies, labor is the second-largest cost after feed, and it is also the one that is hardest to see. Hours blur together across milking, feeding, scraping, moving cows, treating sick animals and doing paperwork. This guide looks at where labor time actually goes, what benchmarks exist, and how to find savings without cutting corners on cow care or milk quality. The numbers are drawn from extension sources and vary by farm, so use them to ask better questions about your own operation. For labor resources and training programs, check agriculture.directory.

The tasks that eat the day

Michigan State Extension's article dairy farm labor efficiency lays out the usual list. Cows are milked two or three times daily and moved to the parlor in groups. While milking happens, crews often clean beds, scrape alleys and deliver fresh feed. Other tasks include sorting cows for breeding or examination, preparing and feeding milk to calves, and monitoring cows close to calving. In cropping season, extra workers are added for planting, harvesting and storage.

The key observation is that milking is only part of the picture, and often the part that is most standardized. The hours that quietly grow are the hours around it: sorting, waiting, repeating a task because it was done wrong the first time and walking between jobs.

What benchmarks show

The Michigan State team compared 20 farms, ranging from 80 to more than 3,000 cows. Cows per full-time equivalent (FTE) worker ranged from 25 to 105, using 2,500 hours per year as one agricultural FTE rather than the usual 2,000-hour workplace year. Labor cost per hundredweight of milk fell into three groups: under $3 on eight farms, $3 to $4.50 on seven, and over $4.50 on five. Gross revenue per FTE varied by roughly fivefold between the ends of the range.

To show what that gap means in money, the authors give an example: at 662 cows, a $1.50 per hundredweight difference in labor cost, assuming 25,000 pounds per cow and 90 percent of cows in milk, equals about $223,425 per year. That is a strong argument for measuring labor even if you never change a thing.

The Kentucky Extension guide labor efficiency and determining labor needs offers pounds of milk sold per worker as another measure. For Holsteins, it lists 600,000 pounds in tie stalls and 1 million in freestall barns as benchmarks, with some very efficient herds reaching 1.5 to 2 million. It also suggests about 80 cows per worker is efficient for dairies of 250 cows or fewer and that dairies over 700 head should reach 150 or more.

Why more than one measure

Each measure has weaknesses. Cows per worker ignores output per cow. Milk per worker ignores outsourced tasks, such as when heifers are raised elsewhere. Labor cost per hundredweight depends on wages and whether family labor is counted. The Michigan State authors recommend tracking several measures and note that the farms differ in whether they grow feed or outsource tasks, so comparisons are limited. The Kentucky guide recommends calculating milk sold from milk checks, not DHI estimates, and counting all paid, unpaid and family hours.

Size does not guarantee efficiency

You might assume that bigger herds always use fewer hours per cow. The Michigan State study found no clear linear pattern between size and efficiency, except at the very largest farms. A well-organized 200-cow dairy can beat a messy 800-cow dairy. That is encouraging for mid-size operations, and a good reason to look at systems before looking at expansion. Our guide on herd size and management intensity explores this in more detail.

Where savings usually come from

A consistent milking routine

Parlor time is the most repeated task on the farm, so small improvements multiply. A consistent routine reduces wasted motion, speeds up the cows and protects udder health. The milking routine guide covers prep, lag time, unit attachment and post-dip.

Cow flow and facilities

If cows are slow to enter, slow to leave or crowded in the holding area, workers wait. Cow comfort and layout matter here, as covered in the cow comfort guide. Poorly designed alleys, gates and sorting areas add steps all day long.

Reducing rework

Every cow that needs extra attention, such as a repeat breeder, a case of mastitis or a lame cow, costs labor. Preventing problems saves hours. Our guides on mastitis and lameness are good places to start.

Technology, with realistic expectations

A University of Wisconsin survey of 50 U.S. producers who adopted automated milking systems reported average savings of about 0.10 hours per hundredweight, with results ranging widely: about 8 percent of respondents saw no savings, often because of maintenance demands. Before adopting any technology, estimate the real labor effect on your farm, including repair time.

Do not trade labor savings for cow care

Efficiency should never compromise cow care or milk quality. The Michigan State authors say plainly that the gains come from partnership with employees, not from pushing people harder or cutting staff. Overworked employees skip steps, and the cost shows up later as higher somatic cell counts, missed heats and sick cows. Training, clear roles and regular feedback usually deliver more than adding speed.

A practical way to start

  1. Calculate cows per FTE and pounds of milk sold per FTE using total hours, including family labor.
  2. Track labor cost per hundredweight each year.
  3. Time the main tasks for a week, including the waiting.
  4. Ask employees where time is lost. They usually know.
  5. Change one thing at a time and measure again.

For a lighter look at the workforce side of dairying, see farm.fm's humor piece on working conditions. Your extension specialist and farm management advisor can help set goals suited to your barn.

More from this topic: Business & Profitability → Labor Management