Economic principles for dairy and beef producers and their advisors to think about

Abstract

To be economically competitive, it is important that livestock producers and their advisors understand key economic principles such that they make good business and management decisions. A lot of terms exist to define/describe costs (e.g., variable, fixed, cash, non-cash) and it is important to know what these are, and more importantly, how they tie into financial decisions that need to be made. Partial budgets, which can range from very simple to extremely complex, can be a powerful tool to help in the decision-making process.