Ok, let’s see if we can spark some lively discussion within theCWTgroup.  As I speak with dairy farmers, feed mill operators, premixers, and consulting nutritionists there are a variety of methods that we (the nutritional consultants) earn a living.  The list looks something like this:

  1. Consulting fee retainer paid monthly or pcpd and billed monthly to the dairy.
  2. Consulting fee per hour paid for hours on farm and in the office billed to the dairy.
  3. Commission per ton of feed delivered to the farm, billed to the feed mill and paid by the feed mill.  Obviously the feed mill builds this cost into their margin on feed delivered.
  4. VTM pacs manufactured by a premixing facility, purchased by the nutritionist, sold to a feed mill with an up charge and then formulated into mixed feeds by the nutritionist.  No nutrition fees billed to the dairy.
  5. VTM pacs manufactured by a premixing facility, purchased by the feed mill at the request of the nutritionist, formulated into mixed feeds by the nutritionist, and then a commission paid to the nutritionist by the feed mill based on VTM utilized.  No nutrition fees billed to the dairy.

There are probably 5 more versions of a similar story.  We all need to make a living but I have concern for the lack of transparency in our business.  In the times of VERY tight margins in the dairy business should our clients have a clearer understanding about the cost of our services?

Looking forward to your feedback.