Dairy Farm Monitor Project
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Transcript of Dairy Farm Monitor Project
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Sustaining profit
Dairy Farm Monitor Project
Claire Waterman
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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
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Outline
• 2012-13 Dairy Farm Monitor Project
• Farm case studies
• Summary
Dairy Farm Monitor Project
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DFMP method
divided byassets managed
Return on asset divided byequity
Return on equity
Dairy Farm Monitor Project
Business Risk
Financial Risk
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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
$/kg
MS
(real
)
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Historical – return on equity
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
North North (ROE)
Perc
ent r
etur
n
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Farm case studies
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NO044 GI029 SW021
Annual rainfall (mm) 1,258 944 618
Usable area (ha) 93 137 420
Milking cows 243 246 665
Concentrates fed (t DM/cow) 2.2 1.2 2.6
Milk solids sold (kg MS/cow) 561 485 561
Milk price ($/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
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NO044: Solid performer
• Rank well in every technical category
• Timely operations
• Labour efficient
• Regularly analyses their business
• Seeks advice
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GI029: Keeping it simple
• Simple yet robust system
• 80/20 rule
• Annual and partial budgets
• Environmentally sustainable
• A love of farming
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SW021: Crunching the numbers
• ‘Doing the numbers’
• Labour management
• Work smarter, not harder
• Advice for future entrants is be financially literate
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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
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Project websites
• www.depi.vic.gov.au/dairyfarmmonitor
• www.dairyaustralia.com.au/dairyfarmmonitor
• Claire Waterman, Bendigo – 03 5430 4697
Dairy Farm Monitor Project