In this BULLETIN we discuss:
CHANGES TO CALCULATIONS OF CORE COST STRUCTURE
We have altered the calculation of per cow and per hectare core costs, and added per SU core costs for sheep, beef and other enterprises. These ratios now specifically include the core costs that are primarily related to livestock as Core per Cow Costs or Core per SU Costs. There is a separate Core per Hectare Cost ratio that only reports the costs that are related to land. All of these ratios now exclude any management and staff expenses as there are specific ratios that already describe performance in this area.
You can see the exact combination of costs that are included in each ratio by observing the tool tips in Red Sky. You will also see that these numbers will have changed substantially from previous calculations. To ensure that you are viewing the correct numbers in either your existing files or in the benchmark files you will firstly need to have synchronised some data or open Red Sky, go to File then Refresh Static Data, and then once complete you will need to open any files and select Run All Calcs in all Years.
ADDITION OF COST OF PRODUCTION RATIOS TO SHEEP, BEEF & OTHER ENTERPRISE REPORTS
We have added Cost of Production ratios to the Summary report for all sheep, beef and other enterprises. Cost of Production is a key risk and efficiency ratio and has a similar application to Operating Profit Margin. You will need to complete a Run All Calcs in all existing Years of data (after completing a Refresh Static Data) to have these new ratios calculated accurately.
UPDATED “DOT” ASSESSMENT REORT AVAILABLE WITH REVISED CORE COST STRUCTURE RATIOS
We have updated the “dot” assessment report with the new Core per Cow Cost, Core per SU Cost, plus Core per Hectare Cost ratios. This “dot” assessment report is producing excellent feedback from farmers and rural professionals alike due to the simplicity with which opportunities for improvement can be identified in a farm business. If you would like a copy of this updated report then please contact me at david@redskyagri.com
UPDATING YOUR EXISITING FILES AND BENCHMARKS WITH NEW RATIOS
To update your existing files and the benchmark files with these new ratios, you will firstly need to have synchronised some data or alternatively open Red Sky, go to File then Refresh Static Data. Then once this is completed you will need to open any files and select Run All Calcs in all Years. Alternatively to update the benchmarks you could delete these out of Red Sky and then retrieve these again from our server (as these have been updated on our server).
To view exactly how the new Core Cost ratios are calculated, you open Red Sky and review the tool tips associated with these ratios under Reports. This will only be possible after either synchronising some data or completing a Refresh Static Data. You will also see that these numbers have changed substantially from previous calculations.
If you would like further information on any matter relating to Red Sky then please contact us at feedback@redskyagri.com