Profitable Farm Business Practice
- Foster an industry-wide culture where the principles of profitability and wealth creation are better understood, encouraged and put into practice.
- Equip farmers with risk management decision-making processes to best make tactical and strategic management decisions to control the elements they can and reduce the influence of those drivers which are largely outside of the farmer’s control.
Over the past decade, many dairy farmers have questioned their ability to sustain or improve profitability whilst facing both short-term and long-term challenges around the volatility of milk prices and input prices, as well as climatic extremes.
ADF views farm profitability as controlled by two sets of drivers:
- Issues that happen outside of the farmer’s control, for example weather, milk prices, input prices, asset value and government policy; and
- Issues that are mostly under the individual farmer’s sphere of influence, including how well they farm with underlying profitability levels, and how well they prepare through risk mitigation strategies.
As individual business operators and at an industry level, we must consider the variables that farmers and industry can best control. Whilst there is no silver bullet to ensure long-term farm profitability, ADF is committed to developing opportunities to best support this goal.
Working alongside other industry bodies, including Dairy Australia, ADF is committed to supporting dairy farmers’ wealth creation.