Financial tracking identifies opportunities
Managing two dairy farms and more than 1,000 cows in South-west Victoria keeps James Maxwell busy – and he has always focused on understanding the numbers behind the business.
James has been managing Cooriemungle Operations, near Port Campbell, since 2019. Over that time, a new 60-unit rotary dairy has been built, and two neighbouring farms have been added to the business. In 2022, he also took on management of another nearby farm, Eastern Creek Road.
Together, the farms employ eight staff and rely on accurate financial tracking to manage costs and identify improvements.
“We’re always looking at how to do things better,” James says.
“I needed a way to show the value of what we were doing – not just for myself, but for the people I report to.
Three years ago, James introduced DairyBase to his business – Dairy Australia’s online tool developed to help dairy farmers and advisors measure and compare farm business performance over time. James uses DairyBase across both businesses.
“It makes my life easier,” James says.
“There’s always room for improvement, but it helps show we’re doing pretty well.”
The tool has been especially useful in finding efficiencies – from contractor and harvesting costs, to chemical usage and shed operations. Analysis from DairyBase revealed that operating costs in the new dairy were higher than expected.
“We looked at that and made changes,” James says.
“Now we’ve got a preventative maintenance program in place and a stockpile of spare parts to help avoid breakdowns.”
Other changes included reviewing suppliers and cutting back on chemical inputs.
Weathering the conditions
This year’s dry conditions have put extra pressure on decision-making. Using data, James and his team identified surplus hay for sale and determined when to reduce stock numbers – selling 100 cows and drying off others early.
“When times are tough, the numbers on DairyBase can paint a challenging picture, but it’s helped us identify some surplus hay we can sell,” James says.
“There’s a calculation based on feed cost and cost of production that showed us the trigger point.”
Cooriemungle Operations has substituted expensive inputs with homegrown feed.
James is working on improving his own feed budgeting skills.
“That’s something I want to get a better handle on, so I can make those calls with more confidence,” he says.
Ultimately, James sees value in understanding not just where the business stands – but why.
“You’d be surprised where you can find room for improvement. It’s worth knowing your strengths and weaknesses, and seeing how they reflect financially,” he says.
To find out more about how Dairy Australia supports farmers to enhance their farm business management, and to access DairyBase, visit Farm Business or contact your regional office.
Image of James Maxwell courtesy of Dairy News Australia.