Administration key to profit

FACILITATOR

The Dairy Women’s Network (DWN) is running a series of workshops in April to teach South Waikato dairy farmers that effective business administration has as much potential to contribute to their businesses’ profitability as milking cows.

‘‘Dairy farming women who do the books are often perceived as the household accounts manager, when in reality they are business administrators.

‘‘We know from DairyNZ research that there is huge variation in profitability between New Zealand’s best and worst performing dairy farms. Investing in business administration skills has the potential to significantly close that gap,’’ DWN chief executive Zelda de Villiers said.

DairyNZ modelling shows there is an opportunity to improve the industry’s profitability by more than $1billion a year, or approximately $1000 per hectare, by improving management capabilities and financial literacy.

The DWN’s Well-Oiled Office workshops will be facilitated by Annabel Craw in the North Island and Frances Coles in the South, both hands-on farmers with more than 10 years experience between them teaching financial literacy and business administration.

Craw, a business developer, has spent her career helping other farmers build financial business capability. She said the workshop would help farmers better understand the business administration role and the value it adds to their businesses.

‘‘If you look at other industries or businesses, administration functions are performed at a very high, professional level, because they are at the core of a well-run business.

‘‘In a farming business administration often falls to women who may be juggling a number of other roles on the farm. When you really understand business administration and everything it encompasses, like Frances you can decide how you want to run the role and develop your skills to get the best outcome for your business and lifestyle, depending on your goals,’’ Craw said.

A unique part of the workshop will be a question and answer session sharing practical experiences in dealing with ever- Dairy woman: Annabel Craw, left, will be facilitating the workshops in the North Island. increasing dairy farmer compliance requirements.

‘‘In particular DWN members often ask for more practical training in ACC, tax and Kiwisaver, because the information they get at a technical level isn’t easy to translate in a practical way. This session will be about sharing what people are currently doing, where they are stuck and farmers offering other farmers practical solutions.’’

Craw said by the end of the workshop, dairy farmers would understand the business administrator role and the key components of it within a dairy farm operation, feel more on top of their compliance obligations in business admin, have a better understanding of office technology so that it could work like a personal assistant, have the knowledge to design a smart office space that created calm in the chaos and have a business administration plan for the year.

Based near Temuka, Coles and husband Aaron own Coles Farms and have firsthand experience dealing with increasing business administration demands.

As well as their own dairy farm they have investments in three other dairying businesses, including a farm equity partnership, contract milking arrangements and shared ownership of a herd on a 50/50 sharemilking partnership.

Frances said 13 years ago she was working full-time off the farm and fitting in the accounts around everything else. As the business grew she realised the administration requirements were getting beyond both her resources and some of her skill set.

‘‘I had to reassess our approach to business admin, including whether the home office was still the right place to be doing that work because there is no boundary between home and work when you live at your office,’’ Coles said.

Hiring one part-time admin assistant seven years ago was the start of taking their business administration seriously, and today Coles Farms employs two parttime administrators and has a purposebuilt office complete with boardroom.

‘‘I didn’t grow up on a farm and this has been a significant learning curve for me personally and our business professionally.’’