10 50:50 Sharemilkers: Regional Financial Analysis
10.1 Regional Profitability
Tables 10.1 and 10.2 show key indicative performance for the average farm in Waikato, Taranaki, and Otago-Southland. Other regions do not have sufficient farm data to generate representative statistics, and the low number of farms in the regions presented here may also be less than perfecty representative.
Key Points from Table 10.1 include:
Otago-Southland had the largest farms by hectares, cows and milksolids, followed by Waikato and then Taranaki.
The cash operating surplus per kg MS was highest in Taranaki ($1.34), and lowest in Otago-Southland ($1.01)
All three regions had an average profit per hectare between $600 and $700 per hectare.
Waikato | Taranaki | Otago-Southland | |
---|---|---|---|
PHYSICAL CHARACTERISTICS: | |||
Number of herds | 32 | 27 | 25 |
Effective hectares | 116.6 | 98.3 | 208.0 |
Peak cows milked | 347 | 285 | 601 |
Stocking rate (cows/ha) | 3.0 | 2.9 | 2.9 |
Kg milksolids sold | 134,461 | 117,059 | 257,951 |
Milksolids sold per hectare | 1,153 | 1,191 | 1,240 |
Milksolids sold per cow | 388 | 411 | 429 |
PAYOUT RECEIVED: $/kg MS sold | 3.15 | 3.12 | 3.14 |
DAIRY CASH INCOME $: | |||
Milk sales (net of dairy levies) | 3.15 | 3.12 | 3.14 |
Net livestock sales (sales - purchases) | 0.36 | 0.38 | 0.42 |
Other dairy cash income | 0.02 | 0.01 | 0.01 |
Net dairy cash income | 3.54 | 3.52 | 3.57 |
CASH FARM WORKING EXPENSES: | |||
Wages | 0.34 | 0.25 | 0.53 |
Animal health | 0.25 | 0.23 | 0.21 |
Breeding & herd improvement | 0.17 | 0.17 | 0.17 |
Farm dairy | 0.06 | 0.06 | 0.04 |
Electricity | 0.12 | 0.11 | 0.09 |
Net feed made, purchased, cropped | 0.66 | 0.57 | 0.47 |
Stock grazing | 0.16 | 0.15 | 0.39 |
Support block lease | 0.01 | 0.01 | 0.00 |
Fertiliser (incl Nitrogen) | 0.09 | 0.14 | 0.18 |
Irrigation | 0.00 | 0.00 | 0.01 |
Regrassing | 0.01 | 0.01 | 0.03 |
Weed & pest | 0.01 | 0.01 | 0.01 |
Vehicles & fuel | 0.20 | 0.17 | 0.15 |
Repairs & maintenance | 0.07 | 0.07 | 0.08 |
Freight & general | 0.05 | 0.04 | 0.03 |
Administration | 0.10 | 0.10 | 0.09 |
Insurance | 0.03 | 0.04 | 0.03 |
ACC | 0.02 | 0.02 | 0.02 |
Rates | 0.00 | 0.02 | 0.00 |
Farm working expenses | 2.35 | 2.18 | 2.55 |
Cash operating surplus | 1.18 | 1.34 | 1.01 |
ADJUSTMENTS: | |||
Value of change in dairy livestock | 0.09 | 0.04 | 0.03 |
less Labour adjustment | 0.55 | 0.64 | 0.33 |
plus Feed inventory adjustment | 0.01 | 0.01 | -0.01 |
less Owned support block adjustment | 0.00 | 0.00 | 0.00 |
less Depreciation | 0.19 | 0.16 | 0.14 |
Net Adjustments | -0.64 | -0.76 | -0.45 |
OPERATING CASH & NON-CASH: MS BASIS | |||
Dairy gross farm revenue | 3.62 | 3.56 | 3.60 |
Dairy operating expenses | 3.08 | 2.98 | 3.04 |
Dairy operating profit | 0.54 | 0.57 | 0.56 |
OPERATING CASH & NON-CASH: HA BASIS | |||
Dairy gross farm revenue | 4,177 | 4,239 | 4,465 |
Dairy operating expenses | 3,553 | 3,555 | 3,770 |
Dairy operating profit | 624 | 685 | 695 |
Waikato | Taranaki | Otago-Southland | |
---|---|---|---|
Returns: | |||
Operating return on dairy assets % | 10.0% | 10.8% | 11.2% |
Total return on assets % | 16.3% | 10.0% | 23.7% |
Total return on equity % | 39.9% | 59.8% | 40.8% |
Growth in equity % | 5.1% | 36.0% | 1.4% |
Debt: | |||
Closing term liabilities per kg MS | 4.38 | 6.14 | 3.31 |
Closing debt to asset % | 69.8% | 87.1% | 56.8% |