Book excerpt: Most countries in South-East Asia have established smallholder dairy farming industries through social welfare and rural development programs to provide a regular cash flow for poorly resourced farmers. These farms are now being treated as accepted rural industries and require a more business-minded approach based on changes to farm profitability. Business Management for Tropical Dairy Farmers gives smallholder dairy farmers the business management skills they will need to remain sustainable. Drawing on detailed financial analyses of smallholders in countries such as Pakistan, Thailand and Malaysia, it shows how to budget cash inputs to match cash outflows during different seasons of the year, and how to invest wisely in improving cattle housing and feeding systems. If farmers make greater use of formats and structures for farm costs and returns, it will increase their awareness of the relative importance of all their financial inputs in terms of cost of production per kilogram of milk produced on the farm. It will also allow them to make more meaningful and timely decisions by correctly costing planned changes to their routine farming practices. The book will also be of use to support organisations to more clearly define the key drivers of profit on smallholder farms, and to government departments and national dairy organisations to routinely evaluate and update their industry policies.