On-farm factors key to safeguarding business profitability
Posted on Friday, April 10, 2015 - Category: In the News
Over the past decade, Australian dairy farms have faced many challenges to profitability. With the wide range of climatic zones, production systems, operating structures and milk price structures – it’s no wonder there is no silver bullet to ensuring long-term farm profitability.
Following key outcomes from the 2014 Australian Dairy Farmers (ADF) National Dairy Farmers’ Summit, and earlier recommendations of the Horizon 2020 study, the Australian Dairy Industry Council (ADIC) commissioned Dairy Australia to prepare a report on Sustainable Farm Profitability.
The report, released this month, focuses on the on-farm factors that influence individual dairy farmers’ ability to run profitable farm businesses. Macro drivers outside of farmers’ control, such as weather events, milk price volatility and government policy, are put aside to provide a focus on the aspects of technical efficiency, management capability, tactical flexibility, cost control and investment decisions that farmers can make to deal with risk and volatility.
Dairy Australia’s Farm Business Capability Program Manager, Neil Lane said dairy farms are significantly more successful when farmers are good at managing their business across the board, with a combination of technical and financial skills.
“There isn’t a one-size-fits-all approach to sustaining profitability and it can be a challenge for many individual dairy businesses, however in both good times and bad, there are key areas that farmers can improve to better safeguard their businesses,” Mr Lane said.
Download your copy of the Sustainable Farm Profitability report, here.