DAIRY BOARD – GRANDA TEAM’S PLATFORM FOR FINANCIAL STATEMENTS RECLASSIFICATION AND FARM PERFORMANCE ECONOMIC ANALYSIS IN MILK SUPPLY CHAIN

The dairy farm economic model is brand new even when compared to the recent past. It is characterized by a more complex market offering greater opportunities surrounding the value of produced milk. New factors come into play that are typically associated with the characteristics of larger farms where concepts of sustainability have to be addressed and managed with new stakes and strategies requiring greater vision and new skills.

The ability to produce a break-even cost per liter of milk that is also competitive on its reference market and also generates a satisfactory profit margin irrespective of technical issues, is becoming a crucial point in providing stability to the whole sector.

Through Income Statement and KPIs constant monitoring, it is possible to determine important elements such as the milk’s break-even price, profit/loss margins and costs per 100 kg of milk produced; in a nutshell cowshed financial efficiency, whether it be in terms of size and trends and also in terms of evaluating ROI of any future investments.

In this context, those who work in providing services and selling products to farmers also need to have the necessary competences to “advise and guide” when making sound management decisions that preserve cow health and ensure  farm’s economic survival.

DAIRY BOARD: SYNTHETIC – MEASURABLE – MODERN – ACHIEVABLE – TIMELY

A METHOD TO MANAGE RESULTS AND BE COMPETITIVE:

• Define and achieve SMART goals
• Use financial records to assess the economic company’s health
• Use budgets to manage costs, revenues and credit
• Understand the continuing education costs and sharing this with other farmers