Territory Stories

Katherine rural review

Details:

Title

Katherine rural review

Creator

Northern Territory. Department of Primary Industry and Fisheries

Collection

Katherine rural review; E-Journals; PublicationNT; Katherine rural review

Date

2015-05

Location

Katherine

Notes

Made available via the Publications (Legal Deposit) Act 2004 (NT).; This publication contains may contain links to external sites. These external sites may no longer be active.

Language

English

Subject

Agriculture; Northern Territory; Katherine; Periodicals; Animal industry; Rural industries; Periodicals

Publisher name

Northern Territory Government

Place of publication

Katherine

Series

Katherine rural review

File type

application/pdf

ISSN

0394-9823

Use

Attribution International 4.0 (CC BY 4.0)

Copyright owner

Northern Territory Government

License

https://creativecommons.org/licenses/by/4.0

Parent handle

https://hdl.handle.net/10070/256663

Citation address

https://hdl.handle.net/10070/517955

Page content

Katherine Rural Review P a g e | Dynama, and workshops such as the MLA EDGENETWORK workshops (Business, Nutrition, Breeding and Grazing Land Management) in order for producers to identify changes that may assist in increasing their profits. Conclusions from the Producer Guide to the Northern Beef Report A good business needs to generate significant after-tax profits to fund the needs of the owners and to be considered economically sustainable in the long term. What it costs a business to produce a kilogram of beef (cost of production $/kg live weight) determines its profit, through all market levels. Cost of production is a function of both productivity and costs, usually in that order of importance. Differences in income usually explain more of the difference in profits between businesses than differences in costs. The income of a business is determined primarily by its productivity, with price received being a secondary issue. Small productivity changes in the herd can transform the whole business performance. It is critical to spend the right amount of money on the herd in the right places. Spending too much for no return erodes profit. Scale has a very big influence on overhead costs per adult equivalent (AE) for businesses less than 3,000 AE. Herds below this can still make reasonable profits, however there is a point where the scale constraint is insurmountable. How efficiently a business uses labour has a big influence on its overhead costs, regardless of scale. Addressing the key areas that can be improved independent of scale (kg beef/AE, enterprise expenses and labour efficiency) will benefit most businesses more, at least initially, than an increase in scale will. The reasons why top performers are doing better is they think independently, have a business focus, stick to their plan and get the simple things right. As a result the top producers achieve: higher income through better productivity lower and better targeted enterprise expenditure better labour efficiency contributing to lower overhead expenses a more effective cost base (more income for every dollar spent). The key to increased profit is not complex; identifying the important components of your business and addressing them will provide results. The good news is this provides you with control, however the bad news is there is no silver bullet, quick fix or magic system that will achieve results. Business success will require focus, discipline and attention on the areas that matter. You can download a copy of the report at www.mla.com.au/News-and-resources/Publications Producers interested in learning more about how to calculate these KPIs, how to use the relevant tools and analyse their business, are invited to register their interest for a BusinessEDGE course to be held in Katherine in the last week of July. If there is sufficient demand, a course could be organised for Alice Springs in this week also. One of the authors of the report, Ian McLean of Bush Business Consulting will be the lead presenter of the course. A minimum of 12 participants is required to run the workshop, and so we ask for expressions of interest to be provided to trudi.oxley@nt.gov.au by 31 May in order to ensure the training goes ahead. If you would like to know more about the BusinessEDGE workshop, or the other tools available to better understand your business and assess the benefits of planned changes, please contact Beef Enterprise Development Officer, Trudi Oxley on the email above, or phone 8973 9763. http://www.mla.com.au/News-and-resources/Publications mailto:trudi.oxley@nt.gov.au


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