Business Scoop

Campaign concluded after successful run

Press Release – DairyNZ

DairyNZ says it’s been delighted with the success of its Tight Management campaign. Campaign concluded after successful run

DairyNZ says it’s been delighted with the success of its Tight Management campaign.

The campaign, involving 28 farms around the country, was developed in response to the low forecast of $4.55 at the start of the 2009/10 season, with the aim of ensuring that farmers were in the best shape possible at Christmas despite the challenges of a low payout.

“We seemed to really strike a chord with farmers throughout the country,” says DairyNZ Tight Management campaign leader Rob Brazendale.

“Throughout the last nine months we have had wonderful turnout at our events and thousands of farmers followed their local Tight Management farms by signing up to receive the regular email newsletter.”

Nine months later the forecast payout has risen sharply to $6.10, but Rob says the principles of Tight Management remain just as valuable.

Tight Management aims to ensure farmers improve profitability and the principles are relevant regardless of whether the payout is high or low.

The campaign focused on having a high level of financial awareness, good cost control, timely decision making, a high utilisation of pasture and a focus on cost-effective systems.

“Profit provides options for dairy farmers but profitability doesn’t usually happen by accident,” says Rob. “Our catch cry for the campaign was ‘capture the cash’, and that holds true in any farming season.

Rob acknowledges that DairyNZ has many people to thank for the success of the campaign.

“Particular thanks must go to our 28 Tight Management farmers who allowed their local farming community to share and scrutinise their financial planning and farm management decisions.”

The campaign initiated with a forecasted payout of $4.55 and 75% of farm businesses were expected to make a loss. Due to successive increases in payout this position has changed with 75% of farmers now expected to make a profit.

“Despite this dramatic turnaround in forecast payout our Tight Management farmers have stuck to the principles of tight management and maintained a strong focus on cost effective production,” says Rob. “Most have shown little deviation from their initial budgets and as a consequence will generate strong cash surpluses giving them ptions particularly in debt reduction.

“These farm businesses have been truly representative of this industry’s co-operative spirit, opening their businesses to scrutiny and demonstrating the benefits of good farm business practice. These farmers have devoted many hours to preparing for events and regular updates. Their efforts have driven much of the success of the capaign.

The campaign is concluded for now, but Rob says it may be revitalised in the future.

“There are many industry leaders telling farmers to expect volatility in payout in the medium term. If in the future, the industry faces another major downturn the need for a Tight Management programme could return.”


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