Dairy busi­ness look­ing healthy

Matamata Chronicle - - News -

Coop­erAitken Limited, a Mor­rinsville and Mata­mata based ac­coun­tancy firm, un­veiled their Dairy Farm­ing Av­er­ages with their clients this month.

Coop­erAitken clients and pro­fes­sional peers at­tended a fun in­ter­ac­tive quiz ses­sion to in­tro­duce the Dairy Farm­ing Av­er­ages re­ports.

The ses­sion gave farm­ers the op­por­tu­nity to ex­plore some of the dif­fer­ent ways the re­ports can be used to add value to their busi­ness.

The ses­sion also al­lowed farm­ers to be hands-on, and taught them how to use the re­ports to an­a­lyse their farm’s busi­ness per­for­mance

Cooper Aitken pro­duces the statis­tics yearly and com­bined th­ese with Dairy­Base who have the National Dairy Farm Busi­ness Data­base. The statis­tics are wel­comed by many, giv­ing an ex­cel­lent over­view of dairy farm­ing busi­nesses in the Waikato area.

Peter Hex­ter, di­rec­tor at Coop­erAitken said 2012 was an out­stand­ing sea­son.

‘‘ The great grass growth al­lowed cows to pro­duce to their full po­ten­tial,’’ he said.

‘‘Pro­duc­tion was up by nearly 10 per cent across the board which was on par with the national aver­age and this was achieved with­out in­creas­ing cow num­bers.’’

There are three cat­e­gories for the re­ports: Farm Own­ers, Sharemilk­ers and Own­ers with Sharemilk­ers.

They all fol­low the same for­mat, pro­vide easy to read and un­der- stand ta­bles and graphs, use­ful ra­tios.

At first glance of the re­ports you could draw the con­clu­sion that farm­ers man­aged their costs well as all achieved a lower cost per milk solid, how­ever this is skewed with the great pro­duc­tion this year.

‘‘A bet­ter mea­sure is look­ing at what hap­pened to the ex­penses per hectare and then we see ex­penses in­crease ex­cept for Own­ers with Sharemilk­ers,’’ Mr Hex­ter said.

The high­est per­cent­age in­crease was in re­pairs and main­te­nance.

Again at first glance profit per hectare is up for all cat­e­gories, no­tice­ably 20 per cent for sharemilk­ers, but a main fac­tor that con­trib­uted to­wards this was the change in live­stock val­ues, in­creas­ing by $422 per hectare.

Ac­tual cash profit across all the groups was static.

In­ter­est costs fell across the board per hectare but are still a sig­nif­i­cant cost for farm own­ers at $ 1300 per hectare.

For Own­ers with ShareMilk­ers, this was all very pos­i­tive – pro­duc­tion climbed 9 per cent but even more heart­en­ing was that profit per hectare in­creased by 11 per cent.

This was the only group where ex­penses fell per Ha achiev­ing a 6.5 per cent de­crease in ex­penses now be­low $2000 at $1898 per Ha.

Four of the five ma­jor ex­penses fell, the only in­crease be­ing re­pairs and main­te­nance.

Farm Own­ers broke the op­er­at­ing profit per hectare thresh­old off $3000 achiev­ing $3212.

This profit was a com­bi­na­tion of an in­crease in pro­duc­tion of 16 per cent, milk in­come which in­creased by $ 582 per Ha and live­stock value in­creas­ing by $232 per Ha.

It’s in­ter­est­ing to note that milk solids per cow in this cat­e­gory are 12 per cent higher than the national aver­age at 407kg.

The re­port shows Sharemilk­ers with an in­crease in profit per hectare of over 20 per cent, this was mainly achieved due to the in­crease in live­stock value by $422 per Ha.

Ex­penses in­creased per Ha by 6 per cent. Feed and fer­tiliser costs re­mained static.

‘‘The main pur­pose of the re­ports is to give farm­ers a re­ally good in­di­ca­tion of where they could make changes to im­prove prof­itabil­ity and they also as­sist our bank­ing col­leagues to help clients with bud­gets and cash­flows,’’ Mr Hex­ter said.

‘‘ Coop­erAitken also of­fer their clients a per­son­alised re­port. This would bench­mark their ac­tual farm per­for­mance against the group, which is pow­er­ful in­for­ma­tion show­ing where their farm is out­per­form­ing oth­ers and ar­eas where im­prove­ments can be made.’’

Coop­erAitken di­rec­tor Peter Hex­ter.

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