Financial analysis sharpens focus on business stability
20 July 2026
Gippsland dairy farmers Brad and Jenna White are using financial analysis to strengthen the stability of their business and identify opportunities to improve profitability.
Having this clear understanding of their business performance gives them a greater sense of control, as well as the freedom to focus on other priorities.
Brad and Jenna milk a herd of about 500 Holstein Friesian/Jersey cross cows on a 150-hectare irrigated farm, based in Maffra, in the Macalister Irrigation District (MID). They have a further 90 hectares of fully irrigated runoff blocks.
For Brad, who sets the annual budget and manages farm expenditure, financial analysis makes the running of a successful business relatively easy.
“I can see the picture (of the business) in my head,” he said.
“I know that in an average-to-good year, we'll make good money and we'll be able to do whatever we want to do, like some developments on the farm. And in a tight year, we’ll still be fine.”
The couple took over the business from Brad's parents, Peter and Wendy, after Brad spent a decade working alongside his father, following his return home from studying agriculture at the University of Melbourne.
The Whites are currently operating with four full-time staff employed on farm, including a 2IC. Jenna worked off farm as a paramedic until recently, and now ensures that the bills are paid, updates the accounts and rears the calves.
Their financial analysis starts with the annual budget; and as the business is in a relatively stable position, this usually involves transferring the numbers across from the previous year and adjusting to take account of any expected changes, including milk prices.
Brad monitors the budget a couple of times a month throughout the season.
“Often, if it's a reasonable season, we probably won't change too much because it might just mean a little bit of cream off the top,” Brad said.
When the budget looks healthy, they’re able to spend on farm improvement projects. Having a good handle on their figures allows them to make these decisions, and quickly, too.
“So, this year, we knew we could push ahead on a bunch of projects that we'd sort of put off in previous years,” Brad said.
Brad and Jenna are also a part of a farm business discussion group, facilitated by an external consultant, which meets six to eight times a year. The group uses Dairy Australia’s DairyBase business analysis and benchmarking tool to compare their business performance with each other.
DairyBase is a free, online financial and management tool which provides farmers with valuable insights into their operations, including in-depth business analysis, industry benchmarking, budgeting and forward planning as well as carbon tracking.
“It gives us the ability to focus on areas that we don't perform as well as others in or just gives us the knowledge that we know we're doing well in whatever aspects,” Brad said.
Through DairyBase, they identified that their animal health costs were higher than others in their area. “We've definitely made some changes, and it's something we are conscious of,” Brad said.
The Whites’ accountant also sits in on their discussion group and uses Dairy Australia’s Dairy Standard Chart of Accounts (DSCoA), a standardised, dairy-specific template for organising farm financial accounts. DSCoA categorises income (for example: milk and livestock sales) and expenses (for example: herd costs, feed, employed labour) into industry-agreed codes. The use of this tool allows their figures to be entered directly into DairyBase to be readily compared with other group members.
Brad and Jenna believe Dairy Australia’s business tools support the development of strong financial analysis skills for farmers, which Brad says are fundamental for making informed decisions.
“You can’t run a dairy business—or any business, for that matter—without knowing where you stand,” Brad said.
To find out more about DairyBase, or how Dairy Australia can support you to enhance your farm business management, reach out to the local Dairy Australia team or visit Farm Business.
Brad and Jenna milk a herd of about 500 Holstein Friesian/Jersey cross cows on a 150-hectare irrigated farm, based in Maffra, in the Macalister Irrigation District (MID). They have a further 90 hectares of fully irrigated runoff blocks.
For Brad, who sets the annual budget and manages farm expenditure, financial analysis makes the running of a successful business relatively easy.
“I can see the picture (of the business) in my head,” he said.
“I know that in an average-to-good year, we'll make good money and we'll be able to do whatever we want to do, like some developments on the farm. And in a tight year, we’ll still be fine.”
The couple took over the business from Brad's parents, Peter and Wendy, after Brad spent a decade working alongside his father, following his return home from studying agriculture at the University of Melbourne.
The Whites are currently operating with four full-time staff employed on farm, including a 2IC. Jenna worked off farm as a paramedic until recently, and now ensures that the bills are paid, updates the accounts and rears the calves.
Their financial analysis starts with the annual budget; and as the business is in a relatively stable position, this usually involves transferring the numbers across from the previous year and adjusting to take account of any expected changes, including milk prices.
Brad monitors the budget a couple of times a month throughout the season.
“Often, if it's a reasonable season, we probably won't change too much because it might just mean a little bit of cream off the top,” Brad said.
When the budget looks healthy, they’re able to spend on farm improvement projects. Having a good handle on their figures allows them to make these decisions, and quickly, too.
“So, this year, we knew we could push ahead on a bunch of projects that we'd sort of put off in previous years,” Brad said.
Brad and Jenna are also a part of a farm business discussion group, facilitated by an external consultant, which meets six to eight times a year. The group uses Dairy Australia’s DairyBase business analysis and benchmarking tool to compare their business performance with each other.
DairyBase is a free, online financial and management tool which provides farmers with valuable insights into their operations, including in-depth business analysis, industry benchmarking, budgeting and forward planning as well as carbon tracking.
“It gives us the ability to focus on areas that we don't perform as well as others in or just gives us the knowledge that we know we're doing well in whatever aspects,” Brad said.
Through DairyBase, they identified that their animal health costs were higher than others in their area. “We've definitely made some changes, and it's something we are conscious of,” Brad said.
The Whites’ accountant also sits in on their discussion group and uses Dairy Australia’s Dairy Standard Chart of Accounts (DSCoA), a standardised, dairy-specific template for organising farm financial accounts. DSCoA categorises income (for example: milk and livestock sales) and expenses (for example: herd costs, feed, employed labour) into industry-agreed codes. The use of this tool allows their figures to be entered directly into DairyBase to be readily compared with other group members.
Brad and Jenna believe Dairy Australia’s business tools support the development of strong financial analysis skills for farmers, which Brad says are fundamental for making informed decisions.
“You can’t run a dairy business—or any business, for that matter—without knowing where you stand,” Brad said.
To find out more about DairyBase, or how Dairy Australia can support you to enhance your farm business management, reach out to the local Dairy Australia team or visit Farm Business.