tft overview interim results + agenda

8/11/2019 TFT OVERVIEW INTERIM RESULTS + AGENDA

1/3

TOMORROWS FARMS TODAY PUBLIC FOCUS DAY 19 Feb 2013

10.00: START

Overview of TFT Group and preliminary observations of what a strong business looks like.

What separates stronger business from more vulnerable businesses..?

10.15: Overview of 2 years on Guyton Farm. Look at Infrastructure, Effluent, Cows, Wetland. +

Discussion in Paddock on related issues.

11.45: Leave Guytons Wetland on Homestead Road for Gibsons on Tutukau Road.

12.10: Lunch at Gibsons Courtesy of Rabobank.

12.50: Nicky Watt (Large Herd Sharemilker Canterbury) Knowing your farms performance.

Policy changes are moving across NZ. Canterbury is faced with change in near future. What

does this mean for business. What does a strong business look like in Canterbury + how do

farmers ensure resilience in the face of change?

1.15: Gibson Farm Overview + Cows, Effluent, LUC etc.

2.30: Finish + Cuppa.

Overview of TFT 2010-2012

Challenges

This is the second dry summer in 4-5 years. Unpredictability leads to Stress on farmers

High Debt and Deep Feed Deficits

Looming policy changes raising questions over what systems are best.

Our drivers of the previous 20 years, may need to change. (chasing Capital gains, more cows,

more production) IE is Growth or Resilience the pathway forward.

Opportunities

TFT has a great group of farmers

Transparency about all parts of the business is excellent. From that grows a new level of

support + knowledge.

The rain will return, but may be after quite a deep feed deficit for many.

This challenge will make us want to think about our overall farm system and its configuration

for the long term.

From this experience, we may learn to look at things differently.


2/3

Key Findings from TFT over past two years.

We have had last two years of analysis. Changes to the operating environment have been

in Milk Price of 20%

in patterns of seasonal pasture growth: a net difference of 2-3 T DM harvested on a range of

farms.

Average Pasture Harvested for Central Plateau was 10 T DM in 2010 and increased to 11.5 in 2012.

But the range of net difference was far greater over different farms. More vulnerable or marginal

soils showed a large difference.

Many farm systems have been configured for better years, and messages in the past has not always

taken into account soil, landscape and climate variation nor human capability.

Not all soils are equal. Pasture harvest for example ranges in your own locale are 8 T to 12 T ondryland. Different Soils + Land Classes. Environmental risk is also variable on different soil types.

In business it is not the good years that make you, but rather the tough years that break you.

We need to think resilience, and understand how risk affects us as people.

Farming is a mix of three biological systems land, cows, people. We cannot ever hope to have

perfect control of all variables.

We have been fundamentally driven by the messaging of the last 20 years which was largely all

about growth at all costs. (Production more cows, debt, etc.)

Is it time for new thinking so we can approach the challenges on the front foot, so that we roll

with the punches a little better?

+/- Milk price of 20%

+/- Pasture Harvest of 20%

+/- looming policy change and operating environment (banks, regional council approaches)

+/- Human Capability

-/- Constrained resource availability (water, phosphates, stressed ecosystem services ie bees,

assimilative capacity of waterways etc.)

Continued pursuit of growth can result in us being more vulnerable to unpredicted challenges.


3/3

Tomorrows Farms Today 2013

Year 2: Resilient Businesses 2010-2012

Gibson Guyton A B C

Central

Plateau

Average

2012

PHYSICAL PARAMETERS

Cows per Milking Hectare 2.59 2.67 2.47 2.75 2.80 2.79

BWt per Milking Hectare 1,165 1,199 1,185 1,291 1,345 1,324

Milksolids per Cow 388 368 462 469 432 403

Milksolids per Milking Hectare 1,005 979 1,140 1,287 1,210 1,125

Kg home grown feed eaten

per cow/KG BWt9.20 7.6 9.40 8.40 7.74 6.8

Pasture Dry Matter Harvested

(tDM/Ha)11.7 9.9 11.7 11.1 11.1 11.0

KEY PERFORMANCE INDICATORS: Financial

Operating Profit per Hectare 3,210 2,753 3,087 3,312 2,645 1,885

Operating Profit per Cow 1,239 1,033 1,251 1,206 944 676

Return on Capital (ROC) at 4-

Yr Av Values @$6.08 kg MS6.3% 5.9% 7.7% 7.9% 4.6% 4.6%

Return on Capital at $5.50kg

MS (ROC) at 4-Yr Av Values5.1% 4.8% 6.2% 6.3% 3.6% 3.6%

Cost of Production per kg

Milksolids$3.10 $3.58 $3.69 $3.77 $4.22 $4.57

Core per Cow Cost $452 $588 $738 $571 $657 $593

Core per Hectare Cost $964 $999 $1,217 $1,430 $1,527 $1,230

Core per Hectare Cost per tDM

Pasture Harvest$82 $101 $104 $128 $138 $112

Cows per Full Time Staff

Equivalent145 167 161 134 154 165

Pasture as % of Total

Consumed88.7% 81.9% 90.1% 75.5% 80.5% 79.8%

KEY PERFORMANCE INDICATORS: Environmental

N Leaching kg/N/ha/yr

Overseer V 625 20 19 22 23 36

Nitrogen Conversion Efficiency 26% 27% 25% 29% 35% 30%

Environmental Scorecard 2.3 2.2 1.9 2.1 2.2 N/A

kg/N/ha/yr Applied 55 91 130 57 140 126.4

tft overview interim results + agenda

Documents