Business Health

 

Owl Farm requires a healthy business to support the progress we make in animal well-being, environmental footprint and workplace quality.  We maintain a manageable level of debt to service that allows continued investment, along with a cost structure that allows progress in good payout years and survives low payout years.  We aim to attract premium value for products at an appropriate cost structure. 

Primary KPIs

  • Farm working expenses (FWE) of $4 per kg milksolids produced
  • Operating profit in the top 20% of Waikato Owner Operator farms in DairyBase
  • Return on Assets of 6% every year

 

Secondary KPIs

  • Break-even milk price of $5/kg milksolids
  • Opening debt of $20/kg milksolids
BUSINESS HEALTH2 (002)

Business Health Stories

Budget

Essential for every farmer - this sets the production system expectations and operational spend for the season.

Cash Flow

A cash flow budget allows us to monitor actual expenditure against budget and proactively manage the variances that come from climatic impacts and payout changes.

Debt per kg Milksolids

Maintaining manageable levels of debt is important to ensure the farm keeps up with increasing industry standards while ensuring debt servicing levels are appropriate to the payout and operating cost structure.

DairyBase

DairyBase is an important benchmarking tool offered by DairyNZ. It allows farmers to compare their own business against others in the industry based on region, system type or performance.

Breakeven Milk Price

Breakeven milk price is the milk income per kilogram of milksolids required to cover all costs of our farm system.