Financial Budget Manual
Gross Margins 2020
Livestock, Cropping and Horticulture Introducing Enterprise Analysis
Introduction Enterprise Analysis is a means to an end, not an end in itself. Enterprise analysis provides a valuable framework for identifying the main drivers in a farm business. A statement on a farm’s projected financial position, along with an operating profit statement, will give a full picture of forecast liquidity, profitability and wealth creation. Enterprise analysis starts with inputs and outputs presented in a spreadsheet, using a tool such as Excel. This manual provides examples to help students and others understand the first principles of a farm’s finances (including budget and gross margin analysis). The tools to analyse and manage agri-business enterprises are rapidly changing. Many software-based tools and systems are available and it is difficult to recommend the best one for each individual farm, as the range is challenging to evaluate.
Acknowledgements: Foundation for Arable Research (FAR) NZ Winegrowers for the Viticulture Bench marking analysis NZ Potato Federation & NZ Onion Growers Deer NZ PGG Wrightson livestock & Velvet marketing agents Farm consultants & Farmer inputs.
Contact: Rob Reynish Editor Business Development Manager E: aginfo@lincoln.ac.nz W: http://aginfo.lincoln.ac.nz Ph: 03 423 0233 M: +64 2753565898
Cropping
Gross Margin Barley Crop: Sanette Barley Sowing Area: 1.00 ha Start Date: 14/09/2019 End Date: 8/02/2020
INCOME Grain Harvest Forage Harvest
Yield t/ha
Yield Source
Price per Tonne
9
My Paddocks
400
3600
1.8
My Paddocks
$116.00/t
208.8
OPERATION
Per ha
Cost Per ha
Cultivation - Heavy Cultivation
80
Cultivation - Light Cultivation
40
Sowing - Disc Seeder
75
Fertiliser Application - Spreader Topdressing
18
Spraying - Boomspray (Self Propelled) Three applications
75
Fertiliser Application - Spreader Topdressing
18
Grain Harvest - Conventional Harvester
250
Forage Harvest - Large Square Baler
150
Input Fertiliser Seed Fertiliser
Product
Rate/ha
Cost Per Unit
Sulphur Gain 20S
350kg/ha
0.36
Cost Per ha 126
Sanette
125kg/ha
1.18
147.5
Urea
130kg/ha
0.58
75.4
Herbicide
Starane
0.6L/ha
44
26.4
Herbicide
Trimec
2.75L/ha
13.78
37.89
Insecticide
Mavrik Aquaflo
100mL/ha
0.14
14
Fertiliser
Urea
80kg/ha
0.58
46.4
Irrigation
several application
40mm/ha
2.15
430
Fungicide
Delaro
300mL/ha
0.0825
24.75
Fungicide
Proline
0.4L/ha
98.61
39.444
Fungicide
Acanto
0.35L/ha
94.05
32.9175
Terpal
0.7L/ha
54.35
Growth Regulator
38.045
Per ha Total Income Cost of Production Gross Margin
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$3808 $1744 $2064
03
Gross Margin Carrot Seed Crop: Carrot Sowing Area: 1.00 ha Start Date: 28/01/2019 End Date: 28/03/2020
INCOME Grain Harvest Forage Harvest Grazing
Yield
Price
Per ha
300
32
9600
0.00 t/ha
$0.00/t
0
0.00 lwt kg/ha
$0.00/lwt kg
OPERATION
0 Cost Per ha
Cultivation ( 5 times)
360
Sowing
150
Spraying ( 12 times )
292.4
Fertiliser Application
36
Cutting
45
Windrowing
70
Grain Harvest Input Insecticide Seed Herbicide Fertiliser Fungicide
250 Product
Rate/ha
Cost Per Unit
Cost Per ha
3kg/ha
14
103.53
126
Carrot Seed
3kg/ha
15
45 345.91
several applications
1L/ha
37
minimum 2 applications
75kg/ha
0.6129.39
26.4
several applications
0.5L/ha
18.19
293.53 32.25
Adjuvant
Uptake Spraying Oil
1L/ha
12.87
Irrigation
Water minimum 8 applications
40mm/ha
2.15
688
2L/ha
55.63
108.7
430
Growth Regulator Miscellaneous Seed Processing ($1/kg) Freight ($60/t) Beehives ($180/hive)
Cost Per ha 300 18 1440
Per ha Total Income
$9600
Cost of Production
$4707
Gross Margin
$4892
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Gross Margin Field Peas Crop: Canty 14 Pea Sowing Area: 1.00 ha Start Date: 11/09/2019 End Date: 13/02/2020
Yield
Yield Source
Price
Grain Harvest
INCOME
3.00 t/ha
My Paddocks
$960.00/t
2880
Forage Harvest
1.50 t/ha
My Paddocks
$233.00/t
349.5
Grazing
0.00 lwt kg/ha
$0.00/lwt kg
OPERATION
Per ha
0 Cost Per ha
Cultivation
215
Sowing
75
Spraying
20
Spraying
20
Grain Harvest
270
Forage Harvest Input
170 Product
Rate/ha
Seed
Canty 14
250kg/ha
1.72
430
Herbicide
Terb 500
2L/ha
10.39
20.78
Herbicide
Mcpb
3L/ha
14
42
Irrigation
Cost Per Unit
Cost Per ha
Water 3 applications
30mm/ha
2.15
193.5
Fungicide
Kocide Opti
500g/ha
0.03
14.66
Fungicide
Tazer
400mm/ha
0.05
18.9
Karate Zeon
40mm/ha
0.32
Insecticide
12.79
Miscellaneous
Cost Per ha
Freight ($60/t)
180
Per ha Total Income
$3229
Cost of Production
$1682
Gross Margin
$1546
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05
Gross Margin Maize Crop: P0021 Ma Sowing Area: 1.00 ha Start Date: 5/10/2019 End Date: 2/05/2020
INCOME Grain Harvest Forage Harvest Grazing
Yield
Price
Per ha
12.50 t/Ha
$415/t
$5,187.50
0.00 t/ha
$0.00/t
$0.00
0.00 lwt kg/ha
$0.00/lwt kg
OPERATION
$0.00 Cost Per ha
Spraying
$25.00
Sowing
$50.00
Spraying
$25.00
Fertiliser Application
$18.00
Grain Harvest Input Herbicide Insecticide Fertiliser Seed Herbicide Fertiliser
$250.00 Product
Unit
Cost Per Unit
Cost Per ha
Corral
7L/ha
$13.48
$94.36
Karate Zeon
40mL/ha
$0.32
$12.79
Cropmaster 15
250kg/ha
$0.67
$168.64
P0021
80000 seeds/ha
$0.00
$350.00
Atraflow
3L/ha
$5.85
$17.55
Urea
250kg/ha
$0.58
$144.64
Miscellaneous
Cost Per ha
Drying ($27/t)
$337.50
Freight ($10/t)
$125.00
Per ha Total Income
$5,187
Cost of Production
$1,618
Gross Margin
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$3,569
Gross Margin Oil Seed Crop: Vistive Oil Seed Rape Start Date: 13/03/2019
Sowing Area: 1.00 ha End Date: 20/02/2020
INCOME Grain Harvest Forage Harvest Grazing
Yield
Price $/t
Per ha
4.2
725
3045
0
0
0
0.00 lwt kg/ha
$0.00/lwt kg
OPERATION Spraying
235
Cultivation
80
Sowing
100
Fertiliser Application six applications
90
Grain Harvest Input Herbicide Seed Seed Treatment Molluscicide
0 Cost Per ha
250 Product
Rate/ha
Cost Per Unit
Cost Per ha
several applications
0.3 -2L/ha
11
110 70
Vistive
2kg/ha
35
Gaucho
0L/ha
0
0
Slug Out
5kg/ha
6.32
31.6
Adjuvant
Agpro Crop Oil
1L/ha
12.13
12.13
Fertiliser
Two applications Urea
90 -150kg/ha
0.58
140.3
Fertiliser
Muriate of Potash
150kg/ha
0.66
99
Fertiliser
Ammo 31, two applied
150kg/ha
0.51
153.86
Folicur 430Sc
0.6L/ha
43
98.88
Molybor SL
1.5L/ha
14
21
Insecticide
Pirimor 50
0.15kg/ha
60.02
9
Insecticide
Mavrik Aquaflo
0.1L/ha
140.63
14
Adjuvant
Agpro Crop Oil
1L/ha
12.13
12.13
Fungicide Fertiliser
No Miscellaneous
Per ha Total Income
$3045
Cost of Production
$1526
Gross Margin
$1518
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07
Gross Margin Perennial Ryegrass Seed Crop: Grasslands Nui perennial Sowing Area: 1.00 ha Start Date: 8/03/2019 End Date: 4/02/2020
INCOME Grain Harvest Forage Harvest Grazing
Yield
Price
Per ha
2.2
1950
4290
5
40
200
4000kg DM/ha
0.25
OPERATION
1000 Cost Per ha
Cultivation
120
Sowing
75
Spraying
150
Fertiliser Application
72
Cutting
35
Grain Harvest
250
Forage Harvest
150
Input
Product
Rate/ha
Cost Per Unit
Cost Per ha
Seed
Grasslands Nu kg/ha
12
96
$94.36
Pulse Penetran
0.15L/ha
25.88
3.88
Adjuvant Herbicide
several
0.75 - 2L/ha
$8.0 - $74
180.32
Fertiliser
Urea
125kg/ha
0.58
265.56
Irrigation
Water min 6 a
40mm/h
2.15
516
several
0.5L/ha
$15.5 -$98.61
168.86
Moddus
1.6L/ha
105.62
Fungicide Growth Regulator Miscellaneous Seed Processing ($0.30/kg) Freight ($60/t)
159.89 Cost Per ha 660 132
Per ha Total Income
$5490
Cost of Production
$3034
Gross Margin
$2455
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Gross Margin Vining Peas Crop: Sherwood Pea Sowing Area: 1.00 ha Start Date: 14/07/2019 End Date: 30/11/2020
INCOME Grain Harvest Forage Harvest Grazing
Yield
Price
Per ha
8.5
355
3017.5
3
125
375
0.00 lwt kg/ha
$0.00/lwt kg
OPERATION
0 Cost Per ha
Cultivation
120
Sowing
100
Spraying
50
Grain Harvest (included in contract price)
0
Raking
25
Forage Harvest
150
Input
Product
Rate/ha
Cost Per Unit
Cost Per ha
Seed
Sherwood
295kg/ha
2.25
663.75
Sodium Molybdat
0.15kg/ha
44
6.6
Herbicide
Fertiliser
Terb 500
2L/ha
9.89
19.17
Herbicide
Tropotox Plus
3.5L/ha
12.38
43.31
Two applications
40mm/ha
2.15
172
Irrigation No Miscellaneous
Per ha Total Income
$3392
Cost of Production
$1349
Gross Margin
$2042
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09
Gross Margin Wheat Crop: Starfire (KWW46) Sowing Area: 1.00 ha Start Date: 1/03/2019 End Date: 10/02/2020
INCOME Grain Harvest Forage Harvest Grazing
Yield
Price
Per ha
11.5
405
4657.5
0
0
0
0.00 lwt kg/ha
$0.00/lwt kg
0
OPERATION
Cost Per ha
Cultivation cultivations
180
Spraying several sprayings
175
Sowing
50
Fertiliser Three Applications
54
Grain Harvest Input Adjuvant Herbicide
250 Product
Rate/ha
Cost Per Unit
Pulse Penetrant
0.15L/ha
25.88
3.88
Applications
0.4 - 3.5L/ha
$13.78 - $139.66
202.7
110kg/ha
1.2
132
Two Applications
40mL/ha
0.3
41.65
Urea x two
150 - 300kg/ha
0.58
337.15
Two applications
0.2L/ha
105.62
27.66
Aviator Xpro
1L/ha
$38 - $97
184.03
Water 4 applications
50mm/ha
2.15
440.75
Seed Insecticide Fertiliser Growth Regulator Fungicide Irrigation
Cost Per ha
No Miscellaneous
Per ha Total Income
$4657
Cost of Production
$2078
Gross Margin
$2578
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Lincoln University — Financial Budget Manual
Gross Margin Analysis for White Clover Seed Crop: Grasslands Bounty White Clover Sowing Area: 1.00 ha Start Date: 20/02/2019 End Date: 10/02/2020
INCOME Grain Harvest Forage Harvest Grazing
Yield
Price $/t
Per ha
0.6
5800
3480
0
0
0
0.00 lwt kg/ha
$0.00/lwt kg
0
OPERATION
Cost Per ha
Cultivation
80
Sowing
75
Spraying
200
Grain Harvest
250
Input
Product
Seed
Grasslands Bounty
3kg/ha
15
45
Pulse Penetrant
0.15L/ha
25.88
3.88
Herbicides
Several applications
< 3L/ha
16.1
437.25
Adjuvant
Uptake Spraying Oil
1L/ha
12.19
12.19
Irrigation
Four applications
40mm/ha
2.15
322.5
Karate Zeon
40mL/ha
0.32
12.79
Adjuvant
Insecticide Miscellaneous
Rate/ha
Cost Per Unit
Cost Per ha
Cost Per ha
Beehives
200
Seed Processing ($0.30/kg)
266
Freight ($60/t)
42
Per ha Total Income
$3480
Cost of Production
$1946
Gross Margin
$1533
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11
Gross Margin Fodder Beet Crop: SF Brigadier Sowing Area: 1.00 ha Start Date: 11/10/2019 End Date: 1/06/2020 INCOME
Yield
Grain Harvest
Price
Per ha
17.2
250
4300
0 lwt kg/ha
$/lwt kg
0
Forage Harvest Grazing
0
OPERATION
0 Cost Per ha
Spraying
30
Cultivation-Plough
130
Cultivation-Heavy Roll
40
Fertiliser Application
18
Cultivation-Disc Chain Harrows
40
Cultivation-Grubber
60
Sowing-Precision Seeder
150
Cultivation-Heavy Roll
40
Spraying
60
Forage Harvester Input Adjuvant Herbicide Fertiliser Fertiliser
20 Product
Rate/ha
Cost Per Unit
Cost Per ha
Pulse Penetrant
0.15L/ha
27.17
4.07
Roundup Ultra Max
3L/ha
11.9
35.7
Lime
5000kg/ha
0.03
150
DAP
620kg/ha
0.75
465
Seed
SF Brigadier
0.92kg/ha
363
333.96
Herbicide
Magister Cs
0.15L/ha
144.38
21.65 45.06
Herbicide
Claw
2L/ha
22.53
Attack
0.5L/ha
39.27
19.63
Nortron
1.47L/ha
25.85
37.99
Herbicide
Mitron 70Wg
1.47L/ha
79.59
116.99
Herbicide
Betanal Forte
1.47L/ha
103.4
151.99
Fertiliser
Urea
150kg/ha
0.49
73.5
Fertiliser
Potassium Chloride
50kg/ha
0.585
29.25
Irrigation
Two applications
15mm/ha
2.15
Insecticide Herbicide
64.5
Per ha Total Income
$4300
Cost of Production
$2137
Gross Margin
$2162
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Gross Margin Kale Crop: Sovereign Kale Sowing Area: 1.00 ha Start Date: 2/12/2019 End Date: 26/06/2020
INCOME Grain Harvest Forage Harvest Grazing
Yield
Price
0
0
0
10
0.25
2500
0.00 lwt kg/ha
$0.00/lwt kg
OPERATION
Per ha
0 Cost Per ha
Cultivation - Disc Chain Harrows
120
Sowing - Conventional Seeder
80
Cultivation - Disc Chain Harrows
120
Fertiliser Application
15
Spraying
30
Fertiliser Application
15
Forage Harvest - Forage Harvester
20
Input Seed
Product
Rate/ha
Cost Per Unit
Cost Per ha
Sovereign
4.4kg/ha
22.5
99
Fertiliser
Cropzeal boron boos
200kg/ha
0.85
170
Fertiliser
Potassium Chloride
50kg/ha
0.59
29.5
Fertiliser Herbicide Insecticide Fertiliser
Urea
200kg/ha
0.49
98
Solvo 360Cs
0.35L/ha
89.6
31.36
Chlorpyrifos 500 Ec
1.2L/ha
14.47
17.364
Urea
150kg/ha
0.49
73.5
Per ha Total Income Cost of Production Gross Margin
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$2500 $918 $1581
13
Gross Margin Onions
INCOME
tonnes/ha
Onions
% grade
$/tonne
$/ha
94%
$480
$13,536
6%
$485
$873
30.0
Export
28.2
Local
1.8
weighted average $480
Total Income
Variable Costs:
$14,409/ha
Description/ No. example
Rate Units
$9.61/bag
$/unit Units
$/ha
Field Operations Seed
2.50 t/ha
$180.00 /t
$450
Cultivation
275 HP (Tractor size)
5.00 hr/ha
$115 /hr
$576
Planting
225 HP (Tractor size)
2.50 hr/ha
$99 /hr
$246
0.30 hr/ha
$77 /hr
$553
Spraying Sprayer tractor size
24 Passes 160 HP
Fertiliser Pre plant (Base)
15% Pot super
Planting Post emergence (Side)
CAN 8
Post emergence (Side) Lime Fertiliser transportation Fertiliser application Fertiliser tractor size
2 Passes
1,800 kg/ha
$645 /tonne
$1,161
kg/ha
/tonne
$0
00 kg/ha
$713 /tonne
$570
kg/ha
/tonne
$0
3,000 kg/ha
$290 /tonne
$870
5.60 tonne
$12 /tonne
2.00 hr/ha
$53 /hr
$67 $214
90 HP
Agri-chemical1 Fungicide Insecticide
$133
Herbicide
$792
Irrigation
14
$825
3 Passes
Lincoln University â&#x20AC;&#x201D; Financial Budget Manual
$81 /pass
$243
Description/ No. example
Variable Costs:
Rate Units
$/unit Units
$/ha
2.00 hr/ha
$81 /hr
$162
Harvesting Harvester + tractor
1 Tractor
Tractor size
160 HP (Tractor size)
Bin pick up (forklift/tractor) Labour
6 staff
Transporting bins to the packing shed
10% Loss between harvested and marketable yield
2.00 hr/ha
$20.00 /hr
$40
2.00 hr/ha
$16.50 /hr
$198
37 of 900kg bins
$19.80 /bin
$726
Postharvest Operations
$0
Grading Packaging - export Packaging - local
10.00 kg bags
$75.00 /tonne
$2,250
$0.00 /tonne
$0
$0.65 /bag
$116
$32.40 /tonne
$914
$1.23 /bag
$111
Freight Market (FOB)
28.2 tonnes
Market (local)
20 kg bags
90 bags/ha
Commission
10.0% on local product sales
Levy
0.45% local
$87 0.35% export
$51
Total Variable Costs
$11,356/ha
Total Variable Costs
$379/t
Gross Margin
$3,053/ha $102/t
Sensitivity Analysis Effect of Yield and Price on Gross Margin/ha Yield
Export Price ($/t)
Sensitivity Analysis
t)
$390
$435
$480
$525
$570
Change in Price ($)
$45
20.0
-$2,114
-$1,223
-$331
$560
$1,451
Change in Yield (t)
5.0
25.0
-$867
$247
$1,361
$2,475
$3,590
30.0
$379
$1,716
$3,053
$4,390
$5,728
35.0
$1,626
$3,186
$4,746
$6,306
$7,866
40.0
$2,872
$4,655
$6,438
$8,221
$10,004
local price
$395
$440
$485
$530
$575
Effect of changes in variable costs on the Gross Margin
"1
10% less
5% less
budget
5% more
10% more
$4,271
$3,708
$3,145
$2,581
$2,018
The detail is not shown here, however the cost is based on a user defined spray programme and current chemical prices.
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15
Gross Margin Potatoes Agria 2019-20 Table potatoes INCOME
$/ha
Gross yield Paid yield
65.0 t/ha 60% premium
39.0 t/ha
$650/t
$25,350
10% 2nd grade
6.5 t/ha
$300/t
$1,950
30% Damaged
19.5 t/ha
$0/t
bruised damaged 30%
$420/t
Total Income
Seed
$27,300
Applications
Fertiliser
3.50 t/ha
$1,100/t
3,850
65.0 t/ha Triple super
600 kg/ha
689
$413/t $240/t
SOP
250 kg/ha
960
Kieserite
250 kg/ha
537
$134/t
DAP
200 kg/ha
830
$166/t
3 CAN
250 kg/ha
599
$150/t
1 MOP
100 kg/ha
$660/t
$66/t
1 Roundup CT/
2.0 l/ha
$15.00/l
30
1 GRANstar
0.05 l/ha
$301/l
30
1 Sencor
2.0 l/ha
$50.00/l
100
1 Bladex
2.5L/ha
$25/L
63
Linex
1.5L/ha
$29/L
44
1 Mentor
0.35 kg/ha
$48.80/kg
17
2 Avid
0.6 l/ha
$90.00/l
54
2 Movento
0.6 l/ha
$190.00/l
106
2 Benevia
0.5 l/ha
$190.00/l
95
2 Uphold
0.5 l/ha
$150.00/l
75
Sprays Weeds
Pests
16
2 Tripsol
0.9 l/ha
$100.00/l
85
2 Maverik
0.3 l/ha
$190.00/l
57
2 Methaphos
1.0 l/ha
$21.00/l
21
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Seed Pests/diseases
Applications
3.50 t/ha
$1,100/t
3,850
1 Amistar 250SC
1.5 l/ha
$35.00/l
53
4 Score
0.5 l/ha
$50.00/l
100
1 Gem
2.5 l/ha
0
Moncerin
1.5 l/ha
0
8 Mancozeb
2.00 kg/ha
$10.00/kg
160
10 Applications
35.0 mm 3.5 L/ha
$2.50
875
5.5 hours/ha
$170/h
$935/ha
935
Including boxes
3.5 t/ha
$60/t
210
3.5 t/ha
$20/t
70
0.1 t/ha
$20/t
2
12.5 t/ha
$1/t
13
$250/ha
250
$30/ha
420
$2,600.00
Irrigation Electricity & repairs Water cost Contract work Cultivation Seed cool storage Seed cutting & treatment Seed cartage Fertiliser cartage Spreading Planting Spraying
14 Applications
Contract harvest/cartage Harvesting
incl. Contract wages
65.0 t/ha
$40.00/t
65.0 t/ha
$25.00/t
1,625
Heavy cultivation
0
1.0 hrs/ha
$30/hr
Light cultivation
0
1.0 hrs/ha
$20/hr
0
Fertiliser spreading
3
0.5 hrs/ha
$20/hr
30
Drilling
0
0.0 hrs/ha
$20/hr
0
Spraying
0
0.5 hrs/ha
$20/hr
0
1.0 t/hr
$30/hr
0
Cartage Operation
Harvesting Casual labour Harvesting - extra
0
0 0 People
65.0 t/hr
$28/hr
0
Other costs Levies, certification
0.9% of Income
232
Total Variable Costs
$13,370
Gross Margin
$13,930
Gross Margin/ML
$3,980/ML
Fixed overheads co $2,000 per ha, but this analysis references the variable costs 60% of potato crops are grown on leased land, due to crop rotation requirements.
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17
Table Potato Summary
Price INCOME
$/ha
Potatoes
$
Total income
-10%
10%
$27,300
$24,570.00
$30,030.00
0
$300/t
$1,950
$14,250
$14,250.00
$14,250.00
$13,050
$10,320.00
$15,780.00
$3980/ML
-21%
21%
Variable costs Seed
$3,850
Fertiliser/lime
$1,169
Sprays
$1,089
Irrigation
$875
Water cost
$875
Contract work
$1,900
Contract harvest/cartage
$4,225
Tractor & plant
$30
Casual labour
0
Other
$232
Total variable costs Gross margin
Effect of Yield & Price YIELD
Price -10%
Base
10%
$378.00
$420/t
$462/t
$/ha
$/ha
$/ha
-10%
58.5 t/ha
7,874
10,331
12,788
Base
65 t/ha
10,320
13,050
15,780
10%
71.5 t/ha
12,766
15,769
18,772
18
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http://Aginfo.lincoln.ac.nz
19
Vineyard Gross Margin Model Crop: Marlborough Sauvignon Blanc Area: 24 Ha
Yield Vines per Ha
2126
Row metres per Ha
3846
Tonnes
14
Income Total
Labour
upaid FTE
Hand harvesting
6.6 per vine
per tonne
$1,820
$25,480
12.1 per vine
per Ha
per Vine
0.4 0
0.00
Pruning
2435
1.15
Canopy & crop Management
1660
0.78
Other Wages
1770
0.83
$5,865
$2.76
Total Labour Expenses
upaid FTE
0.4
Weed & Pest Control
1161
0.55
Fertiliser incl Lime
339
0.16 0.08
Electricity
164
Repairs & maintenance
788
0.37
General
184
0.09
Vehicle
95
0.04
Fuel
185
0.09
Machine harvesting
742
0.35
Total operational expenses
$3,658
$1.72
TOTAL DIRECT EXPENSES
$9,523
$4.48
$15,957
$7.51
GROSS MARGIN $/ha GROSS MARGIN $/T
$1,140
Sensitivity
YIELD VS $/TONNE
Yield
20
$680/t
$1,820/t
$2,500/t
$4,500/t
5.0 t/ha
($6,123)
($423)
$2,977
$12,977
10.0 t/ha
($2,723)
$8,677
$15,477
$35,477
14.0 t/ha
($3)
$15,957
$25,477
$53,477
20.0 t/ha
$4,077
$26,877
$40,477
$80,477
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Vineyard Gross Margin Model Crop: Central Otago Pinot Noir
Area: 17.36 Ha
Yield Vines per Ha
3141
Row metres per Ha
4183
Tonnes
7
Income Total
Labour
2.23 per vine
per tonne
$4,220
$29,540
12.1 per vine
per Ha
per Vine
upaid FTE
1
Hand harvesting
2495
0.79
0.00
Pruning
2330
0.74
1.15
Canopy & Crop Management
5010
1.60
0.78
Other Wages
4145
1.32
0.83
$13,980
$4.45
Total Labour Expenses
upaid FTE
0.4
Weed & pest Control
522
0.17
0.55
Fertiliser incl Lime
239
0.08
0.16
Electricity
364
0.12
0.08
Repairs & maintenance
774
0.25
0.37
General
969
0.31
0.09
Vehicle
574
0.18
0.04
Fuel
615
0.20
0.09
0
0.00
0.35
machine harvesting
$4,057
$1.29
TOTAL DIRECT EXPENSES
Total operational expenses
$18,037
$5.74
GROSS MARGIN $/ha
$11,503
$3.66
GROSS MARGIN $/T
$1,643
Sensitivity
YIELD VS $/TONNE
Yield
http://Aginfo.lincoln.ac.nz
$1,900./t
$3,200./t
$4,220./t
$6,500./t
3.0 t/ha
($12,337)
($8,437)
($5,377)
$1,463
7.0 t/ha
($4,737)
$4,363
$11,503
$27,463
9.0 t/ha
($937)
$10,763
$19,943
$40,463
10.0 t/ha
$963
$13,963
$24,163
$46,963
21
Vineyard Model Production Income
area
Production
Total Production
Gross yield %
Brix %
$/T
Total Income
Savignon Blanc
23.50 Ha
14.5 t/ha
341.00 t
86%
21.4
$1,885./t
$643,100
Pinot Noir
3.00 Ha
6.9 t/ha
21.00 t
5%
23.1
$3,285./t
$67,700
Variety
Pinot Gris
1.50 Ha
11.0 t/ha
17.00 t
4%
22
$1,960./t
$32,500
Chardonnay - Mendoza & Clone 15
1.50 Ha
9.2 t/ha
14.00 t
3%
22.3
$2,275./t
$31,500
Chardonnay + all other clones
0.50 Ha
10.5 t/ha
5.00 t
1%
22.2
$2,025./t
$10,600
13.2 t/ha
397.00 t
$1,978./t
$785,400
Averages
30.00 Ha
KEY PARAMETERS YEAR
BENCHMARKING MODEL 2009 - 18
2018
2019
30
30 374. t/Ha
( 10yr Av ) Area
30
Production ( T/Ha)
363. t/Ha
382. t/Ha
Revenue per T
$1,695./t
$1,930./t
$1,945./t
Income
$623,850
$740,700
$730,500
Working Expenses
$280,955
$334,000
$367,100
EBIT/Total Capital
5.20%
5.20%
4.50%
22
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Livestock
Hill Country Beef Breeding Cow Gross Margin
LAND USE CLASSIFICATION 2,3 & 4
100 Breeding Cow herd Selling Steers & Heifers at 18 months of age Capital stock wintered:
No.
Value
Total
SU
Total SU
Breeding Cows
82
$800
$65,600
6
492
IC RSG 2yr Heifers
18
$700
$12,628
6
108
RSG 1yr Heifers
43
$550
$23,659
3.5
151
RSG 1yr Steers
43
$600
$25,810
4
172
Breeding Bulls
3
$3,000
$9,000
5.5
17
189.1
$5,650
$136,698
Investment in beef per stock unit
939 $146
PRODUCTION PARAMETERS: Calves weaned Death rate Replacement Heifers Pure Bred cows mated to the same breed Bulls or different breed Bulls Steers and Heifers are sold as forward stores on the farm
24
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86% 3% 22%
Income
.
18 month Steers
42
$850
$35,468
Av store Price/Hd
18 month heifers
24
Cull Cows
15
$685
$16,225
$790
$1,120
$16,843
Cull Bulls
1
$1,450
$1,450
151
TOTAL INCOME
$69,987
Expenditure: Bull purchases
1
$6,500
$6,500
Drench, Supplements
100
$12.50
$1,251
Pregnancy Testing
100
$7.50
$750
Animal Health
Levies - AHB, M&LNZ, NAIT adjusted for in the prices received TOTAL DIRECT COSTS:
$8,501
TOTAL GROSS MARGIN (before interest)
$61,486
GROSS MARGIN per dollar invested in cattle GROSS MARGIN per Stock Unit
$146 $65.45
INTEREST COSTS INTEREST ON CAPITAL STOCK VALUE:
4.00%
RETURN PER STOCK UNIT (after interest)
$62.84
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25
Bull Beef Gross Margin Dairy cross Bulls purchased as 100 kg weaners as early as possible in Spring sold at 19 to 24 months of age, (70% killed at 20 months)
Buy each Spring: 100 calves weighing 100kg
Stock wintered:
No.
Value
Total
SU
Total SU
Rsg 1 yr Friesian Bulls
98 @
$640
$62,720
3.6
353
Rsg 2 yr Friesian Bulls
29 @
$980
$28,812
6
176
Total stock wintered
127
$91,532
529
Dollar Investment in beef per stock unit
$173
PRODUCTION PARAMETERS:
2%
Death rate
Sales:
SU
No. less mortality able to be sold
Sold at 19-21 months, between March and May
70.00%
67
Residual sold at about two years old in Oct/Nov
30.00%
29
Sell majority at 19 to 21 months of age between March and May, retain balance until Oct/Nov (sell at 24 months of age).
Total to sell 96
Income: Bulls 19-24 months, slaughtered as they reach target weight Carcase Wt at sale
No.
Wt
$/kg
/
96
275kg
4.35$/kg
$114,840
TOTAL INCOME
26
Lincoln University â&#x20AC;&#x201D; Financial Budget Manual
$114,840
Expenditure
No.
Wt
$/kg
100 @
$2.80/kg
$0
Anthelminitics (4x)
400@
$2.00/dose
$800
Pour on
100@
$1.22/head
$122
Cobalt injection
100@
$0.75/dose
$75
Weaner Bulls (100 kg)
114,840$
Animal Health
Copper Bullet
100@
$2.78/dose
$278
Five in One vacc (2x)
200@
$1.30/head
$260
100@
$8.00/head
$800
Finished Bulls to Works
96@
$28.60/head
$2,746
Levies - AHB, M&WNZ
96@
$16.00/head
$1,536
NAIT
96@
$1.40/head
$134
$1,535
Transport based on 50km Weaners to Farm
$3,546
TOTAL DIRECT COSTS
$6,751
TOTAL GROSS MARGIN (before interest)
$108,089
GROSS MARGIN per dollar invested in cattle
1.18
GROSS MARGIN per Stock Unit
$204.25
INTEREST COSTS INTEREST ON CAPITAL STOCK VALUE:
$91,532
7.00%
RETURN PER STOCK UNIT (after interest)
$6,407 $192.14
Gross Margin per stock unit at various weaner and bull prices Bull Schedule $/kg
Weaner Price $/kg
http://Aginfo.lincoln.ac.nz
4.60
4.80
5.00
$2.60
$216.72
$226.70
$236.68
$2.80
$216.72
$226.70
$236.68
$3.00
$216.72
$226.70
$236.68
27
Dairy Cow Gross Margin Owner Operator South Island over 30% Irrigated area
Peak milking cows: 730 Effective Milking area Ha: 230 3.17 Cows per Ha
Capital Stock wintered:
No.
Value
Total
Milking Cows
570
$1,850
$1,054,500
In Calf milking Heifers
160
$1,800
$288,000
RSG 1 year Heifers
160
$800
$128,000
890
$1,470,500
Investment in dairy stock
Production Parameters: Calving %
90% surplus calves sold within two weeks
Death rate
2%
Replacement heifers
22%
Kg Milk Solids per Cow
440
Kg Milk Solids per Ha
1380
Stocking Rate cows/Ha
3.18
Total milk solids kg
Income
321,200
Kg Milk Solids.
$/Kg Milk Solids
321,200
$6.40
Net milk sales Milk sales per Cow
$2,816
Milk sales per Ha Net dairy livestock sales TOTAL INCOME
28
Lincoln University â&#x20AC;&#x201D; Financial Budget Manual
$2,055,680
$8,937.74 $586
$134,780 $2,190,460
Expenditure
/ha
Total
Breeding & herd improvement
$207
$47,610
Animal Health
$303
$69,690
$78
$17,940
$379
$87,170
Supplements ( grown/purc.)
$1,143
$262,890
Grazing run off
Dairy shed Eletricity ( shed + Irrig ) Feed Expenses
$2,119
$487,370
Fertiliser & regrassing
$1,271
$292,330
Labour Wages 3 FTE
$979
$225,170
Labour Adjustment Management
$283
$65,090
TOTAL DIRECT COSTS
$1,555,260
GROSS MARGIN per Ha (before interest)
$2,762
INTEREST COSTS INTEREST ON CAPITAL STOCK VALUE:
4.00%
$58,820
RETURN per ha Livestock only (after interest)
$2,506
Gross Margin Sensitivity per ha Production per Cow VS Milk Solids $ kg $5.20
$6.00
$6.40
$6.60
$6.85
385
178
1,156
1,645
1,889
2,194
400
426
1,441
1,949
2,203
2,521 3,390
440
1,086
2,203
2,762
3,041
460
1,416
2,584
3,168
3,460
3,825
480
1,746
2,965
3,574
3,879
4,260
Effect of Milk Payout on profitability per Ha Payout MS change -15%
-10%
-5%
GM
5%
10%
15%
$5
$5.76
$6.08
$6.40
$6.72
$7.04
$7.36
Gross margin per ha
$807
$1,868
$2,315
$2,762
$3,209
$3,656
$4,102
Farm Operating Exp
89%
78%
74%
71%
68%
65%
62%
Milk solid $/kg
Merino Gross Margin Ewe Flock Breeding Own Replacements Capital Stock wintered:
No.
Total
SU
Total SU
1100 @ $160
$176,000
1
1100
2 th Ewes
165 @ $175
$28,875
1
165
Hoggets
206 @ $125
$25,781
0.85
175
13 @ $800
$10,120
1.1
14
1,484
$240,776
890
1,454
Breeding Ewes
Rams Totals Dollar Investment in sheep per stock unit
$165.57
Production Parameters: Ewe to Ram ratio
100
Other
Ewe replacement rate (2th vs MA ewes)
15%
Wool bale
% of hoggets that are culled
20%
Ram culling
190kg/bale
25%
Lambing % Ewes
95% (survival to sale) No. dead resulting fr mortality %
Death rate (ewes/hoggets)
4%
Ewes/2Th
51
17kg
Hgts
8
Productivity
Kg
% shorn
Total wt of wool
Wool clip (kg/ewe)
4.2
96
5,100
Wool clip (kg/hogget)
3.1
96
614
0
0
-
Lamb kill carcase weight
Lambs shorn Total Wool weight
5,714 kg wool
Lamb price/kg ($/kg carcass weight)
$6.60
Income (Revenue per head net of freight and levies, wool net of selling charges) Ewe and 2Th Lambs sold Hogget's lambs Cfa ewes Ewe wool 20 m av Hogget wool 18 m av Wool (kg) average
30
Income Ratios
Av
947 @
$112.20
$106,302
0@
$112.20
$0
$106,302
47%
$112.20 Lmbs
114 @
$80.00
$9,152
$9,152
4%
$80 Ewe
5100 @
$18.50
$94,359
614 @
$28.00
$17,186
$111,545
49%
$19.52 Wool
5,714 @
$19.52
$111,545
Lincoln University â&#x20AC;&#x201D; Financial Budget Manual
Expenditure Shearing Sheep
1,214 @
Hoggets
$370 per 100
$4,493
198 @
$370 per 100
$733
Lambs
0@
$360 per 100
$0
Total shorn
1,412 $60.00 per 100
$847
Wool shed expenses, packs Animal Health
1,454 @
$6.50
Wool - bales
30 @
$13.00
Ram Purchase
3@
$1,450
Drenching & Vaccinating Dipping/foot treatment Cartage $391 $4,586
TOTAL GROSS MARGIN (before interest)
$206,497
GROSS MARGIN per dollar invested in sheep
$0.86
GROSS MARGIN PER STOCK UNIT
$142.00
INTEREST COSTS INTEREST ON CAPITAL STOCK VALUE:
246,766 @ 3.00%%
RETURN per Stock Unit (after interest)
$7,223 $137
Gross Margin per Stock Unit Sensitivity Lamb price VS Lambing % 85
95
125
Ave lamb
$100
$128
$135
$156
price
$112
$136
$144
$168
$/hd net
$120
$142
$151
$176
Lamb price VS Lambing % Average Wool Price $/kg (net) $10.00
$19.52
Ave lamb
$100
$96.64
$134.05
$157.94
price
$112
$104.59
$142.00
$165.89
$/hd net
$120
$109.67
$147.08
$170.97
http://Aginfo.lincoln.ac.nz
$25.60
31
Deer Gross Margin - Velvet Production, Red Deer Capital Stock Wintered: Desired total flock 400
No.
Total
Spikers
65 @ $240
$15,484
1.7
110
Rsg 2 yr Stags
59 @ $360
$21,368
2.3
136.5
Rsg 3 yr Stags M.A. Stags
SU
Total SU
57 @ $450
$25,548
3.0
170
219 @ $570
$125,032
3.0
658
400
$187,432
Totals
Dollar Investment in deer per stock unit
1,075
$174.42
Production Parameters: Cull percentage, on ma stag
15%
Death rate
3%
Velvet yields, ranges and prices are extremely variable. The following yield assumpt have been made for this gross margin. Spiker
0.7kg
Spiker grade
2 yr
2.4kg
Korean grades
$150 $135
3 yr
3kg
Korean grades
$130
M.A. Stags
4kg
Korean grades
$125
Percent second cut velvet (Third cut is built into the percent second cut rate)
30%
Days during year when supplementary feeding needed
60 days
Income: (net of commission and levies) Velvet Price - average
128$/kg
all grades
Velvet Yields plus the % second cut, with no second cut from spikers Spiker
63 @
0.7kg
44kg
$6,571
2 yr Stags
58 @
2.4kg
180kg
$24,250
3 yr Stags
55 @
3kg
215kg
$27,921
M.A. Stags
213 @
4kg
1106kg
$138,303
1545kg
$138,303
Total Velvet Sold Average weight of velvet/stag Cull stags sold
32
32 @
120kg
Lincoln University â&#x20AC;&#x201D; Financial Budget Manual
Income ratios
3.98kg/stag
$197,045
90% Velvet
5.70/kg CW
$21,831
10% Meat
Expenditure Weaner stags
65 @
$190
388 @
$9.50
$12,258
Velveting by accredited farmer Velvet assessment costs - one off fee
$200.00
1st cut
$3,686
2nd cut
116 @
$7.50
$873
Animal health
388 @
$15/hd
$5,820
Supplements
60 Days/yr feeding
$10,579
kg DM/head/day
Barley
46c/kg DM
0
$0
Baleage
30c/kg DM
2
$0
Kale
25c/kg DM
5
$30,000
$30,000
$52,837
$49.17
TOTAL DIRECT COSTS
GROSS MARGIN per dollar invested in sheep
$0.86
TOTAL GROSS MARGIN (before interest)
$166,039
GROSS MARGIN per dollar invested in deer
$0.89
GROSS MARGIN per Stock Unit
$154.52
Interest costs: Interest on Capital Stock Value:
$187,432 @ 3% interest
$5,623
RETURN per Stock Unit (after interest)
$149.28
Gross Margin Sensitivity per Stock Unit Velvet prices VS meat value ($/kg).
Average velvet price $/kg
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Lamb price VS Lambing %
Value of carcase - $/kg 5.00
5.70
7.00
$100
$112
$135
$156
$128
$115
$155
$160
$160
$120
$201
$206
33
Red Deer Gross Margin Selling Hybrid Weaner Stags Surplus Weaner **Pregnancy Tested in Fawn (PTF)
Capital Stock Wintered
No.
Total
SU
6 Month Hinds av Lwght
50 25 @ $163
$4,022
1.5
37
18 Month Hinds av Lwght
95 24 @ $428
$10,263.21
2
48 363
M.A. Hinds av Lwght
115 165 @ $431
$71,156
2.2
5 @ $6,000
$28,351
3.5
218
$113,792
Breeding Stags Totals
Dollar Investment in deer per stock unit
Total SU
16.5 465
$244.88
Production Parameters: Stag Ratio
1:40
Fawning - survival to sale
85%
Death rate.
3%
Rising 2 year hinds entering herd each year
15% of MA hinds
Days during year when supplementary feeding needed
60
Surplus weaner hinds and stags sold on the farm All Breeding stock TB tested every second year Income: (Net of commission and levies)
No.
Breeding hinds production
161
Total
Weaner Stags (55 kg LW)
80 55 @ $3.25/kg Lwght
$14,359
Weaner Hinds (50 kg LW)
56 52 @ $2.80/kg Lwght
$8,09
25 100 @ $3.00/kg
$7,425
1 85 @ $5.70/kg
$485
Works Hind (100 kg LW) Works Stag (85 kg CW) Velvet (4 kg/hd)
SU
Total SU
$30,360
5 4 @ $128.00/kg
$2,419
TOTAL INCOME
$32,780
$70.54
Value per kg Lwght
34
Lincoln University â&#x20AC;&#x201D; Financial Budget Manual
$3.25 Red
$3.75 Hybrid
$4.50 Red (PTF)**
$4.50 Hybrid
$3.75 Red (PTF)**
$3.90 Hybrid ( PTF)**
Expenditure Sire Stag
1 @ $8,000
$8,000
Animal Health
218 @ $7.50
$1,639
Annual vet inspect Velvet removal Freight selling stock to works TB Test (some areas, once/2yr)
$200.00 5 @ $9.50
$45
26 @ $0.00
$0
218 @ $4.00
$873.93
Supplements
60 Days/yr feeding
kg DM/head/day
Barley
46c/kg DM
0
Baleage
30c/kg DM
0
$0 $0
Kale
25c/kg DM
3
$9,832
$9,832
TOTAL DIRECT COSTS
$20,389
TOTAL GROSS MARGIN (before interest)
$12,390
GROSS MARGIN per dollar invested in deer
$0.11
GROSS MARGIN per Stock Unit
$26.66
Interest costs: Interest on Capital Stock Value:
$113,792 @ 3% interest
$3,186.19
RETURN per Stock Unit (after interest)
$19.81
Gross Margin Sensitivity Live weight VS Store Price. Live weight Kg 45
Live weight price
http://Aginfo.lincoln.ac.nz
55
65 $27
$2.80
$20
$23
$3.25
$24
$28
$31
$4.50
$36
$40
$43
35
Sheep Gross Margin Crossbred Ewe Flock Breeding Own Replacements Capital Stock wintered: Breeding Ewes (MA 68kg lw)
No.
Total
SU
Total SU
1100 @ $160
$176,000
1.35
1485
2 th Ewes approx 62kg to ram
275 @ $175
$48,125
1.3
358
Hoggets
344 @ $125
$42,969
1.2
413
14 @ $800
$11,000
1.1
15
Rams Totals
1,733
$278,094
Dollar Investment in sheep per stock unit
2,270
1,454
Wool bale
190kg/bale
$165.57
Production Parameters: Ewe to ram ratio
100
Ewe replacement rate (2th vs MA ewes)
25%
% of hoggets that are culled
20%
Ram replacement % Lambing % Ewes
35% 155% (survival to sale)
Lambing % Hoggets Death rate (ewes/hoggets) Lamb kill carcase weight Productivity
95%
No. dead resulting from mortality %
4%
Ewes/2Th
55
18kg
Hgts
14
Kg
% shorn
Total wt of wool 6,600
Wool clip (kg/ewe)
5
96
kg/hogget & % shorn
3
96
990
1.2
50
1,416
kg/lamb & % of lambs shorn Total Wool weight Lamb price/kg ($/kg carcass weight
9,006kg wool $6.60
Income (Revenue per head net of freight and levies, wool net of selling charges) Ewe and 2Th Lambs sold
1702.3 @
$118.80
Hogget's lambs
314 @
$118.80
$37,244
Cfa ewes
220 @
$80.00
$17,600
Wool (kg)
9005.7 @
$3.00/kg
$27,017
TOTAL INCOME
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$202,227
$284,088
Expenditure Shearing Sheep
1,320 @
$370 per 100
330 @
$370 per 100
$1,221
1,180 @
$360 per 100
$4,247
$60.00 per 100
$1,698
$12,050
2,270 @
$5.00
$11,351
Wool - bales
47 @
$13.00
$616
Ram Purchase
5@
$800
$3,850
Hoggets Lambs Total shorn
$4,884
2,830
Wool shed expenses, packs Animal Health/SUnit Cartage
TOTAL DIRECT COSTS
$27,867
TOTAL GROSS MARGIN (before interest)
$256,221
GROSS MARGIN per dollar invested in sheep
$0.92
GROSS MARGIN PER STOCK UNIT
$142.00
INTEREST COSTS INTEREST ON CAPITAL STOCK VALUE:
$278,094 @ 3.00%%
RETURN per Stock Unit (after interest)
$8,343 $109
Gross Margin Sensitivity per Stock Unit Lamb , lambing % & Wool Prices
Average Wool Price $/kg (net) $1.90
$3.00
$7.00
Ave lamb
100
$94.41
$98.77
$114.64
price
$119
$108.65
$113.02
$128.88
$/Head (net)
$120
$109.40
$113.77
$129.63
lambing percentage 120
155
165
Ave lamb
$100
$75
$91
$95
price
$119
$89
$108
$113
$/hd net
$120
$89
$109
$114
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37
Gross Margin Analysis Sheep Dairy
Scenario Xbd breeding flock
300
Wool
4Kg/Head
Lambing %
185%
S/S
CFA 20% replacement
Lamb Carcase weights kg
19.00
freight paid net sched
$6.40
Replacements
0
Milk yield per ewe (Litre) per annum Milk solids @ 18% av
6 year olds
250 Litres 45 Milk solids
Income: Milk
Litre
$2.20
$550.00
Lambs
$118
$218
Wool
$2.00
$8.00
Surplus stock
$75
$0.00
Total Income per Ewe
$776.30
M/S/kg
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$11.40
Expenditure Feed costs**
concentra 0.5-1.5kg/ day average 1 kg/day
$100
Forage?
$60
Artificially reared lamb costs
Gross Margins
$85
Animal health
$15
Shearing/crutching
$7.40
Total Variable costs
$267
per Ewe
$508.90
hectare
stocking ra
12.5
$6,361.25
** assumptions: milking ewes for 200 days, supplements daily ration of between 0.5 -1.5kg/head/day, at a cost of $500/Tonne.
Gross Margin Sensitivity per Ha, price per litre VS increasing production per ewe. $/Litre
Litres/ewe/year
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$2.00
$2.20
$3.00
$3.60
200
$4,486
$4,986
$6,986
$8,486
250
$5,736
$6,361
$8,861
$10,736
300
$6,986
$7,736
$10,736
$12,986
350
$8,236
$9,111
$12,611
$15,236
400
$9,486
$10,486
$14,486
$17,486
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Pig Gross Margin Weaner Producer Indoor Sows Selling 8 kg Weaners - Canterbury
Capital Stock
.
Sows
200 @ $550.00
Boars*
7 @ $2,030.00
$124,210
*(in combination with Artificial Insemination) Production Parameters: Weaners sold per sow per year
26
Sow Replacement rate
45
Boar replacement rate
50
Meal cost as a percentage of income
34%
Litters per sow per year
2.35
Feed/sow/yr (t)
1.30
High health herd (minimal disease) INCOME Weaners at 8kg
5200 @ $85.00
$442,000
Chopper Sows
70 @ $255.00
$17,850
Chopper Boars
3.5 @ $175.50
TOTAL INCOME
$614 $460,464
per Sow
$2,302.32
Gross Margin per Sow at Various Weaner Prices and Feed Costs Weaner price per head $
Feed cost per tonne (Average)
$75
$85
$105
65
$556
$63
$323
$843
$571
$43
$303
$823
$679
-$104
$156
$676
$124,210 @ 4.00% per annum (13.4 weeks)
$1,280.32
Interest costs: Interest on Capital Stock Value: Return per sow after interest
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Lincoln University â&#x20AC;&#x201D; Financial Budget Manual
$296.92
Expenditure Replacement breeding stock (delivered) Gilts Boars Purchased Feed (delivered)
90 @ $570 each
$51,300
3.5 @ $1,850 each
$6,475
Weaners sold per sow per year
26
Lactating Diet (t)
122 @ $625.00 per tonne
$76,250
Gestating Diet (t)
149 @ $526.00 per tonne
$78,374
271
$154,624
Average feed price per tonne
$571
800 @ $18.00 per dose
$14,400
Animal Health
@ $100.00 per sow
$20,000
R&M
@ $100.00 per sow
$20,000
Genetic Costs (semen doses)
Electricity Labour Sundries TOTAL DIRECT COSTS
@ $115.00 per sow
$23,000
@ $500.00 per sow
$100,000
@ $50.00 per sow
$10,000 $399,799
TOTAL GROSS MARGIN (before interest)
$60,665
GROSS MARGIN Per Sow
$303.33
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41
Pig Gross Margin Weaner Buyer Purchase Weaners and Finish - Canterbury (95% bacon, 5% pork) Capital Stock
.
Weaners
5200 @ $100.00
$520,000
Production Parameters: Mortality rate Pork
4.5%
Bacon
4.5%
Carcass Weight Pork
55kg
78.6% yield
Bacon
75kg
76.5% yield
Feed used to Pigmeat sold (FCR)*
2.24
Meal cost as a percentage of income
43%
Purchase to Finish 19weeks
Grading Penalty
Pork Schedule
$3.85
-$0.02
Bacon Schedule
$3.65
-$0.05
INCOME Porkers
5%
Baconers
95%
248
$212.85
$52,850.66
4718
$277.50
$1,309,162
4966 TOTAL INCOME
$1,362,012 per Weaner
$261.93
Gross Margin per Weaner at Various Baconer Prices and Feed Costs Bacon price per head $ $218
Feed cost per tonne (Average)
$278
$300
$522
-$15.27
$38.71
$59.13
$610
-$31.61
$22.38
$42.79
$638
-$36.80
$17.18
$37.59
$520,000 @ 4.00% per annum
$5,360.00
Interest costs: Interest on Capital Stock Value:
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Expenditure Stock purchase (delivered) Weaners Purchased Feed (delivered) we
5200
$100 each
$520,000
177
$775 per tonne
$137,397 $273,255
Grower Diet (t)
470
$582 per tonne
Finisher Diet (t)
319
$560 per tonne
$178,471
965
$589,123
Average feed price per tonne
$610
Animal Health
$3 per pig
R&M
$15,600
$3 per pig $15,600
Electricity
$2 per pig
$10,400
Labour
$5 per pig
$26,000
$2 per pig
$10,400
Freight -weaners -baconers Sundries
$4 per pig
$19,864
$7.47 per pig
$38,844
Levy, meat inspection, health check TOTAL DIRECT COSTS
per Pig $239.58
$1,245,831
TOTAL GROSS MARGIN (before interest)
$116,182
GROSS MARGIN Per Weener
$22.34
*FCR = Feed Conversion liveweight to feed used ratio Feed used calculation Weight at purchase
Kg
age wee
FCR
feed used/pi
Total feed use
No pigs
Tonnes
$/tonne
$
8
4
5200
1
weight at transfer
25
9
2.1
36
Weaner
4966
177
775
137,397
weight at pork
70
15
2.2
99
Grower
4743
470
582
273,255
weight at sale
98
19
2.4
67
Finisher
4743
319
560
liveweight gain
90
overall FCR
http://Aginfo.lincoln.ac.nz
202
965
178,471 589,123
2.24
43
Notes
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Disclaimer: Every effort is made to ensure that information in this publication is correct at the time of printing, but the content may be subject to change. Lincoln University reserves the right to make changes, amendments or deletions â&#x20AC;&#x201C; including the withdrawal of courses â&#x20AC;&#x201C; should circumstances change. Lincoln University does not assume, and hereby disclaims, any express or implied liability whatsoever to any party for any loss or damage caused by errors or omissions, whether these errors or omissions result from negligence, accident or any other cause. November 2020.
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