Rethinking your Dairy Business Profitability
What drives profit and which ratios to monitor?
Presentation to 1st International Seminar – Ecuador, March 2019
“Designing Profitable Dairy Businesses for the Next Decade”
By David Beca
This presentation is based on a full statistical analysis of over 200 Australian farms where contributing farms were from a large range of production systems and from across the 5 main milk producing States, with all the data collected and processed in exactly the same way. This included data from Victoria, Tasmania, South Australia, Western Australia & southern New South Wales, with a significant amount of the data coming from industry-wide projects being run in Tasmania by DPIWE, South Australia by PIRSA and Western Australia by DAFWA.
All of the data was processed through Red Sky for the 20105/06 year, which was a year of sound (‘average’) milk prices and weather within reasonable norms. The contributing farmers utilised a wide range of farm production systems from almost ‘all’ pasture and under 4,000 litres per cow through to highly intensive production systems and over 9,000 litres per cow, resulting in this being a comparatively unbiased and unique dataset.
The presentation is a result of a comprehensive analysis of this dataset with the intent of identifying an essential group of ratios that farmers can use to determine how their business is performing and where changes could be made, including to their production system, if they wish to develop more profitable and sustainable dairy businesses. In addition, a number of commonly used ratios were identified as not being of value to farmers if their goal was improved profitability.
The following points were developed in the presentation:
To view a selection of slides from the presentation in English please click here.
To view a selection of slides from the presentation in Spanish please click here.