Make Better Business Decisions
AUSTRALIA - Focus on cattle weight and revenue – not prices received and costs – was the key take home message from a business management presentation during Beef Australia 2012, according to Meat and Livestock Australia.
29 May 2012
1 minute read
Agribusiness consultant Ian McLean addressed producers in the MLA innovation marquee on making better beef business decisions.
He provided an overview of the current industry performance, the key profit drivers and business decision-making tools.
Some of his key messages included:
- Always remember the main profit equation of a beef business:
Profit = kilos of beef produced X operating margin
Profit = kilos of beef produced X [price received – cost of production]
Profit = kilos of beef produced X [price received – operating costs/kilos of beef produced] - Increasing the number of kilos of beef produced is the critical part of this equation. This is best done by increasing reproductive rates and turnoff weights, and reducing mortality rates.
- In other words, focus on good managing the main aspects that are within your control – genetics, breeding, nutrition and grazing.
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