Friday, March 29, 2024

Move up the profit line

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Instead of changing the amount of supplement you use or asking if there is more money to be made by intensifying, move up the profit line within your own system. By doing so, your business will become more robust and better able to withstand payout variability.
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For the last four years, the Bay of Plenty Focus on Dairying Trust has collected and monitored financial and physical information, using DairyBase, to identify top performing farms and identify the trends in the region. Last season we also looked at common factors demonstrated by the most profitable farms.

Figure 1 shows the standardised operating profit of 41 Bay of Plenty owner-operated dairy farms for the 2012-13 season. The same milk volume, protein and fat pricing structure was used for all farms. They have been grouped according to farm system. There was a summer/early autumn drought in the Bay in 2013.

By assessing your farm business with tools such as DairyBase, you can quickly identify the key differences between your business and the top performers.

The real challenge lies in changing what you have always done. This can be difficult. Take little steps. Highly profitable farms achieve both business and onfarm goals. Take the challenge to move up the profit line this year.

Wilma Foster is DairyNZ senior consulting officer Western BOP.

Jenny Ritchie is DairyNZ DairyBase extension specialist.

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