Reports highlight farm progress, profitability
Cooperaitken Limited, a Morrinsville and Matamata-based accountancy firm, unveiled its Dairy Farming Averages at a presentation held last month. More than 50 people attended, comprising a mix of Cooperaitken clients and bank personnel from around the area.
Cooperaitken produces the statistics yearly and, from last year, has combined these with Dairybase, which owns the National Dairy Farm Business Database.
The statistics were welcomed by many, giving an excellent understanding of dairy farming businesses in the Waikato area.
Director Peter Hexter said: ‘‘The production per hectare in the Waikato region is better than the national average, which is 923 kilograms of milk solids per hectare. Our farm owners are achieving 1057kg of milk solids per hectare.
‘‘The reports support that overall the 2010-11 season was very positive,’’ Mr Hexter said.
‘‘One of the main purposes of the reports is to give farmers a really good indication of where they could make changes to improve profitability, and our banking colleagues use the reports to help clients with budgets and cashflows.’’
There are three categories for the reports: farm owners, sharemilkers and owners with sharemilkers.
They all follow the same format, being easy to read and understand with visually appealing graphs, tables and many ratios calculated for the reader.
Mr Hexter said that, along with production per hectare, profit per hectare also increased for all categories.
Interestingly, profit for sharemilkers almost doubled between 2010 and 2011.
The average production per cow increased and farm owners achieved better than the national average of 334kg by achieving 355kg.
National average herd sizes have increased over the past 30 years from 126 to 386.
This trend was also seen in Waikato with bigger farms and bigger herds sizes allowing for more efficiency on the farm.
Mr Hexter said farm working expenses (FWE) increased across the board.
For sharemilkers it was only by five per cent which contributed to the increased profitability per hectare that this group saw.
However, there was a significant increase in these expenses for owners with sharemilkers moving from $1.45 per kg of milk solids to $1.71, an 18 per cent increase. The reason for the increase in FWE is mainly due to feed costs increasing.
For farm owners a trend of a $100 increase per cow, per year is showing.
Fertiliser has also seen big increases on the previous season, up 16 per cent.
Repairs and maintenance have been steadily increasing but only really noticeable in owners and owners with sharemilkers.
Interest costs have significantly reduced because of loans coming off fixed rates, allowing farmers to secure lower rates.
Cooperaitken is also offering its clients a personalised report.
This would benchmark their farm numbers against the group, which is powerful information showing where their farm is outperforming others and areas where improvements can be made.
To view the reports go to cooperaitken.co.nz or call Cooperaitken on 07 889 7153