CHB Mail

Accurate measuring

- BY SEAN BENNETT Crowe Horwath Accountant — Business Advisory

Farm businesses know that longterm sustainabi­lity comes from increased productivi­ty and profitabil­ity.

But are we getting an accurateme­asure of our spending versus the returns it is generating? Our Crowe Horwath benchmarki­ng results over the last five years show farm input costs rising but without a correspond­ing increase in the bottom line for many farm businesses. Weneed to scrutinise production per hectare and look at what the costs are.

Recent work by the RedMeat Profit Partnershi­p (RMPP), with farm businesses and industry profession­als, identified Key Performanc­e Indicators (KPI) thatwould have the most impact. They include farm businesses knowing and recording the amount of meat and fibre they produce per hectare and the value and cost of production. While there is nothing new here, as an industrywe get tied up in the complexity and noise in a modern farm business, and sometimes lose sight of these.

Some farm businesses­will require a change in behaviour to measure physical farm performanc­e and some new habits around recording data. For others itwillmean making these habits part of day-to-day management. Top farm businesses are already doing this.

To create a baseline, we need to assess the current position of the farm business in land, labour and capital. We need to identify the opportunit­ies to improve production and put plans in place. These plans need to focus on the physical and financial parts of the business and includeana­ctionplant­o implement these with a review process.

When we know the true costs of production we can ensure there is nowasted expenditur­e and that costs incurred are driving production and profitabil­ity. The recent dairy downturn forced the industry to focus on becoming efficient and effective with their spending. With low profitabil­ity in the red meat sector, it is time to do the same.

Whydid you take up social work?

I learned early that I love people and can build a rapport with all types. My first social work role was with Te Taiwhenua OHeretaung­a. I joined Pleroma Social Services in February. What do you like about it? Meeting a variety of people and being able to help them sort out the challenges that life has thrown them. To help them achieve their goals and work towards having better quality lives gives me the ultimate job satisfacti­on.

What don’t you like about it?

Dogs, when I’m doing home visits. They’re so unpredicta­ble.

What do you actually do? What does a normal day look like?

I help people with their own goals. Priority is given to our tamariki, always ensuring that they are receiving the basics of life. This is helped along by educating the adults in budgeting, counsellin­g, parenting courses, health etc. I spend some time in the office recording notes. Sometimes people’s needs are great, so knowledge of numerous networks is essential.

You’re travelling from your home near Hastings toCHB daily. How are you finding that? What’s different about working in CHB, compared to Hastings?

I find the drive gives me time to self-reflect and prepare myself for my mahi (work). The odd morning can be a bit daunting if I have extra chores to do at home. Every morning I drive into Otane it’s like entering a different world, where time stands still. The tranquilli­ty of the countrysid­e and the friendline­ss of the people here in CHB is remarkable, especially in the towns. The retailers are so helpful with informatio­n and everyone is so approachab­le. I don’t see as many people in CHB as Iwould in Hastings as a lot of my clients live in isolated, rural areas so there is a lot of travelling time.

What would be the best thing people could do to make life better, to make your job better?

To keep striving for the goals they wish to achieve. To never give up. To reach their full potential and be law-abiding citizens. This will be their heritage and whakapapa to the next generation.

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