Business in focus through tough times

30 May, 2018 04:00 AM
Comments
0
 
The Mumford family have improved their business focus during a difficult time in the industry.
So we've questioned cost structures in many parts of the business.
The Mumford family have improved their business focus during a difficult time in the industry.

Gippsland dairyfarmers Paul and Lisa Mumford have ridden the Focus Farm rollercoaster through one of the toughest periods in recent memory.

The milk price crash in 2016 hit the Won Wron couple hard -- as it did for so many other farming families -- with tough decisions needed to keep the business in solid shape.

With a history in banking, Mr Mumford knows that numbers don't lie and he was comfortable opening his books throughout the Focus Farm period.

They haven't always made good reading in the past two years, but the Mumfords have soaked up the input of their hand-picked Focus Farm support group during that time.

"They are quite ruthless to us, which probably concerns Lisa more than myself, so it can be a challenge," Mr Mumford said. "But we have to make sure we are totally open and honest with our numbers.

"While we were struggling a bit in 2016, we think we have turned the corner and the numbers are backing that up."

Being Focus Farmers during a tough period has forced the Mumfords to reexamine every aspect of their business and helped them to make a number of small adjustments that have added up to a big improvement in business performance.

"Business-wise, it's been turned on its head," Mr Mumford said.

"The Focus Farm has asked us about our margins, cost structures, the economics of decisions that we have previously made.

"It has really made us think about what is the cost of production, not only in dollar value, but also the effects on the cash book, the farm itself and the animals.

"So we've questioned cost structures in many parts of the business."

Mr Mumford cites a better understanding of production costs as the single most significant change that has come about through the Focus Farm period.

"We know what the physical cost of production on a cow level -- practically on every day -- is," he said.

"It's making us evaluate the profitability of the business, on any one day throughout the year, to allow us to make decisions moving forward.

"We know our business better on a financial basis.

"I don't think we were bad prior, but it has honed our skills and quantified what we are thinking."

Dairy Australia delivers valued information, resources and services that create opportunities and support dairyfarmers to run successful dairyfarming businesses.

The Focus Farm model has been replicated across regions to develop a network of farms that have a clear focus on whole farm systems, profitability and decision making on real farms under real conditions.

Through its Regional Development Programs (RDPs), Dairy Australia provides regional group extension networks to give farmers and participants increased benefits and value.<\#9>D

Want to read more stories like this?

Sign up to receive our e-newsletter delivered fresh to your email in-box twice a week.

Click here

Page:
1
Dairy Australia

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 
Fertigation is the injection of fertilisers, soil amendments and other water-soluble products through an irrigation system. 
16 Apr 19 Fertigation is the injection of fertilisers, soil amendments and other water-soluble products through an irrigation...
A fertigation trial in south-east Queensland for the past two years has shown it produces more pasture and cuts labour and fuel costs.
16 Apr 19 A fertigation trial in south-east Queensland for the past two years has shown it produces more pasture and cuts...
light grey arrow
This project was doomed from the start. Sri Lanka's Department of Animal Production and Health
light grey arrow
What an awesome article, this will save so much time and money for farmers across the world with
light grey arrow
The $1 a litre milk has already forced closure of numerous dairy farms. Lion Dairy & Drinks
An industry survey revealed that farmers milking larger herds have adopted more precision technologies, and that is expected that by 2025 the adoption of technologies for data capturing and monitoring system parameters will increase.
08 Apr 19 An industry survey revealed that farmers milking larger herds have adopted more precision technologies, and that is...
Virtual fencing (VF) technology has great potential to alleviate the costs, time and labour devoted to the establishment and maintenance of traditional physical fences.
08 Apr 19 Virtual fencing (VF) technology has great potential to alleviate the costs, time and labour devoted to the...
Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition opportunities.25 Sep 16 Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition...
Monopoly market may confront cropping sector under mega-merger proposal.22 Sep 16 Monopoly market may confront cropping sector under mega-merger proposal.