profit profiler
TRANSCRIPT
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What Profit Profiler Can Do For Your
Farming Operation
Understanding the Business Side of
your Dairy
Compared to Other Progressive Dairymen
a service provided by
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What is Profit Profiler?
Software model used to evaluate the economic performance of individual dairy operations.
Subdivides expenses into 4 different categories to find efficiencies/opportunities within the dairy business (forages, grains, cows, heifers)
Provides an opportunity to compare your performance against a number of “Benchmark” indicators
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Why Do It?
You need to know your own production costs
You should know how you are doing when benchmarked against other dairies
Very few options to find true costs by enterprise/expense catagory
Impact of making changes is tremendous
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Why Profit Profiler?
It uses YOUR information – not “average values”
It identifies YOUR strengths and opportunities to make improvements
It shows what parts of the business are money makers and which are losers.
You can compare to different groups of dairymen to be sure
You can use the “What If” feature to see the potential impact of making changes before having to spend the initial outlay of cash
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The Process…
Financial Statements
Production Information
Cropping Information
Labour Information
+ Advisor Assistance
Better Decisions
Useful Benchmarks
Increased Profits
+ “What If” Options
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Know What you Measure
$ / Cow $850
Holstein Holstein (3.8:3.2(3.8:3.2)) JerseyJersey Holstein Holstein (3.7:3.4)(3.7:3.4)
$ / HL $8.99 $11.44 $9.25
$ / kg Fat $2.30 $2.18 $2.50
$ / Milk Rev $ .124 $ .125 $ .126
$725 $875
Purch. Feed CostPurch. Feed Cost
9,455 (3.8:3.2) 6,340 (5.25:3.7) 9,455 (3.7:3.4)
$.727 /L;$19.13 /kg $.908 /L; $17.46 /kg $.733 /L; $19.81/kg
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Basic Reports – 3 Viewpoints
Business to Business
Enterprise Cost of Prod’n
Prod’n & Investment Values
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Report Outline
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DO I KNOW MY COSTS?? SOMEBODY POUR ME A DRINK!!
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SCENARIO 1
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SCENARIO 2
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SCENARIO 3
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SCENARIO 4
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RETURN OVER FEED OF VARYING SCENARIOS
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THESE VALUES DON’T YET CONSIDER THE EFFICIENCY IMPACT OF HAVING MORE/LESS ANIMALS.
• SCENARIO 1 $764,285 100 cows/125kgs/excellent forage quality
• SCENARIO 2 $550,792 100 cows/95kgs/excellent forage quality
• SCENARIO 3 $734,712 119 cows/125kgs/medium forage quality
• SCENARIO 4 $757,442 115 cows/125kgs/low purchase feed $$
FSM ADDED MILK FEED % REV• SCENARIO 1 21.0 11.0 23.9%• SCENARIO 2 21.0 3.0 20.3%• SCENARIO 3 17.0 9.9 27.1%• SCENARIO 4 21.0 6.8 25.4%
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What is “Normal”?
2010-11 (55 Herds)
Total Cow Costs 58.9% 48 - 65%
Feed 25.5% 18 - 29%
Labour 10.1% 6.2 - 11.0%
Health & Breeding 3.8% (expressed as % of Milk revenue)
Cost / heifer / yr $902 $645-$1038
Forage Cost / Acre $420 $192-$541
Cost to make $1.00 $.825 $.73-$.90
Profit Profiler ResultsAverage Range (25-90 PCTL)
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What is “Normal”?
2010-11 (55 Herds)
Total Cow Costs 58.9% 48 - 65%
Feed 25.5% 18 - 29%
Labour 10.1% 6.2 - 11.0%
Health & Breeding 3.8% (expressed as % of Milk revenue)
Cost / heifer / yr $902 $645-$1038
Forage Cost / Acre $420 $192-$541
Cost to make $1.00 $.825 $.73-$.90
Profit Profiler ResultsAverage Range (25-90 PCTL)
$79,629 Diff
$34,747 Diff
$36,942 Diff
$66,310 Diff
$123,063 Diff
$147,066 Diff
Based on 100 cows
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> 10500 vs. < 8700 kg
Cost to make $1.00 $. 767 $.859
Milk Revenue /person $484,652 $254,539
Total Investment /cow $34,705 $23,425
Total Debt / kg Fat sold $47.23 $42.50
Comparison by Milk Prod’n 2010-11
# Cows
Avg Milk Sold/Cow
114
8,091
Low (20 Herds)
263
11,219
High (21 Herds)
NFI per 100 cows $218,471 vs $94,340
Total Cow Costs
Cow Feed Cost
Heifer Costs
53.8% 62.4%
23.3% 26.0%
11.0% 13.1%
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Cost to make $1.00 $. 753 $.878
Milk Revenue /person $604,395 $255,586
Total Investment /cow $29,692 $35,416
Total Debt / kg Fat sold $52.42 $62.33
Comparison by Size 2010-11
# Cows
Avg Milk Sold/Cow
64
8,908
Small (32 Herds)
379
10,026
Large (27 Herds)
NFI per 100 cows $204,710 vs $98,962
Total Cow Costs
Cow Feed Cost
Heifer Costs
53.2% 61.6%
24.0% 25.8%
10.2% 11.9%
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Cost to make $1.00 $. 692 $.964
Milk Revenue /person $239,021 $284,671
Total Investment /cow $30,188 $28,804
Total Debt / kg Fat $41.56 $55.33*
Comparison by Cost 2010-11
# Cows
Avg Milk Sold/Cow
93
8,781
High (21 Herds)
237
9,952
Low (21 Herds)
NFI per 100 cows $276,760 vs $28,340
Total Cow Costs
Cow Feed Cost
Heifer Costs
49.7% 66.7%
21.8% 29.7%
10.4% 13.9%
*Debt averages 1.7M
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Overall cost to make $1.00 $. 785 $.864
Comparison by Heifer Program2010-11
# Cows
Avg Milk Sold/Cow
114
8,708
High Age (20 Herds) 251
10,491
Low Age (21 Herds)
NFI per 100 cows $187,892 vs $109,961
Total Cow Costs
Heifer Costs
55.0% 61.0%
10.4% 12.9
Age @ 1st Calving
1st Lact Prod’n (%)
Cost / Heifer / yr
Cost to calving
23.4 28.0
89% 89%
$ 906 $ 917
$1,767 $2,140
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How Can You Use Profit Profiler?
• Plans for Expansion
• Succession plans
• Evaluate what something is making you rather than simply what it “costs” per unit
• See where to improve and target these areas
• Know how you stand compared to peers
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WHAT IS THE COST??
• NEW SUBSCRIBER, OR IF IT’S BEEN 3+ YEARS SINCE YOUR LAST PROFILE. $2,000.00 + HST
• RENEW EVERY 2 YEARS $1,500.00 + HST
• RENEW ANNUALLY $1,000.00 + HST
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Email: [email protected]
Phone: (855) 442-3400 Fax: (613) 283-1867
Thank You!!
www.profitprofiler.ca