Farm financial planning based on audit
A dairy farm is a complex agricultural enterprise, one of the goals of which is financial stability. In this article, we'll show you how to use farm audit data for financial planning, cost optimization, and loss reduction.
The audit of the farm processes gives an accurate understanding of the eatery cows, the required level of daily feed consumption (silage, compound feed, premixes), veterinary services and the planned volume of milk produced.
Knowing this information, a dairy farm owner or manager can:
1) Plan the overall level of purchase of feed for the period and, on this basis, receive more favorable prices for feed from suppliers.
2) Schedule the dates of preventive examinations by the veterinarian and the costs of vaccinations, and so on.
3) Precisely plan the volumes of milk produced and, on this basis, conclude contracts with large dairy processing enterprises on more favorable terms.
4) Form well-thought-out logistics chains.
5) If a dairy farm harvests silage and mixed feed itself, it will be able to assess whether its own resources will be enough or will it be necessary to purchase some volume from suppliers?
6) Plan animal procurement and reproduction. Competent breeding work indirectly affects the cost of production, and hence the financial performance. Audit data allows you to obtain accurate data on each animal and plan the structure of the livestock, adjust it and predict the volume of milk.
All this enables the manager of a dairy farm to understand the costs / income of the farm in advance and track the implementation of the plan during the period, which directly affects the optimization of the production cost.
Reduction of losses
One of the options for improving the financial performance of a dairy farm is cost optimization, which is also possible through an audit. One of the reports from the DPA service provides information on long-living cows that consume feed as well as other animals, but produce 3-10 times less milk. The information in the report allows you to make a decision and timely replace or sell the animals that cause losses.
Thus, auditing the processes on a dairy farm provides the owner with many opportunities to optimize financial performance.
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