Re­ports high­light farm progress, prof­itabil­ity

Matamata Chronicle - - Rural Delivery -

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

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