SEE HOW WE HELPED CUT OPERATING COSTS BY 22%

BUSINESS SITUATION

Ross Dairy, near Nyora; faced the reality of operating at negative margin once the new milk price was announced, dropping from $0.48 to $0.356

 

SOLUTION

  1. Rationalised herd size, to be able to access more of the lowest cost feed, grass in the paddock; and reduced consumption of “In the Bail” feed

  2. Created a detailed budget and reduce R&M spend from $7k to $3k per month

  3. Conducted independent soil tests to determined the actual soil conditioner that is required and reduced the reliance on additives provided by the companies that usually provide soil tests

 

OUTCOME

Cost of production reduced by $190,000 per annum

The business can break even