A Stochastic Economic Analysis of Large Herringbone and Parallel Milking Parlors

Abstract

A milking parlor simulation and a stochastic model for a capital budget for the parlor were used to determine economically preferred parlors within three milking facility sizes [40 stalls (double-20 herringbone or double-20 parallel), 64 stalls (two double-16 herringbones, two double-16 parallels, or a double-32 parallel), and 80 stalls (two double-20 herringbones, two double-20 parallels, or a double-40 parallel)] and economically preferred operating characteristics (pulsation ratio and vacuum pressure) and management strategies (milking procedures and amounts of milking labor). Net returns indicated that the preferred parlor for 40 stalls was the double-20 parallel. The preferred parlors for 64 stalls were two double-16 parallels and for 80 stalls were two double-20 parallels. The economic advantage for these parlors versus alternative parlors ranged from $688,940 (double-20 parallel) to $2,793,855 (two double-20 parallels). Analyses indicated that values of all preferred parlors were maximized by operation at a high vacuum pressure (50.8 kPa), a wide pulsation ratio (70:30), minimal milking procedures (attach units and postdip), and minimal amounts of milking labor (20 to 32 units per milker). Parallel parlors had higher values than did herringbone parlors, and multiple, small (two double-16 or two double-20) parallel and herringbone parlors had higher values than did single, large (double-32 or double-40) parallel parlors.