dairy farm monitor project
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Dairy Farm Monitor Project. Sustaining profit. Claire Waterman. Dairy Farm Monitor Project. Profitable farmers…. Identify critical variables Know their farm business Match the farm’s resources to their farming system - PowerPoint PPT PresentationTRANSCRIPT
Sustaining profit
Dairy Farm Monitor Project
Claire Waterman
Profitable farmers…
• Identify critical variables
• Know their farm business
• Match the farm’s resources to their farming system
• Appropriately match business and financial risk to their farming system
Dairy Farm Monitor Project
Outline
• 2012-13 Dairy Farm Monitor Project
• Farm case studies
• Summary
Dairy Farm Monitor Project
DFMP method
divided byassets managed
Return on asset divided byequity
Return on equity
Dairy Farm Monitor Project
Business Risk
Financial Risk
Historical – return on assets and milk price
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
North South West Gippsland Milk income (net)
Perc
ent r
etur
n
$/kg
MS
(real
)
Dairy Farm Monitor Project
Historical – return on equity
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
North North (ROE)
Perc
ent r
etur
n
Dairy Farm Monitor Project
Farm case studies
Dairy Farm Monitor Project
NO044 GI029 SW021
Annual rainfall (mm) 1,258 944 618
Usable area (ha) 93 137 420
Milking cows 243 246 665
Concentrates fed (t DM/cow) 2.2 1.2 2.6
Milk solids sold (kg MS/cow) 561 485 561
Milk price ($/kg MS) 6.29 5.12 5.67
Cost of production ($/kg MS) 4.63 3.52 4.21
Return on assets (%) 11.1 6.9 8.8
Return on equity (%) 12.4 7.7 9.2
Dairy Farm Monitor Project
NO044: Solid performer
• Rank well in every technical category
• Timely operations
• Labour efficient
• Regularly analyses their business
• Seeks advice
Dairy Farm Monitor Project
GI029: Keeping it simple
• Simple yet robust system
• 80/20 rule
• Annual and partial budgets
• Environmentally sustainable
• A love of farming
Dairy Farm Monitor Project
SW021: Crunching the numbers
• ‘Doing the numbers’
• Labour management
• Work smarter, not harder
• Advice for future entrants is be financially literate
Dairy Farm Monitor Project
Profitable farmers…
• Identify critical variables
• Know their farm business
• Match the farm’s resources to their farming system
• Appropriately match business and financial risk to their farming system
Dairy Farm Monitor Project
Project websites
• www.depi.vic.gov.au/dairyfarmmonitor
• www.dairyaustralia.com.au/dairyfarmmonitor
• Claire Waterman, Bendigo – 03 5430 4697
Dairy Farm Monitor Project