Budgeting

Guesstimates aren’t enough in business. A feed budget will enable you to know what quantities of each feed you need to buy to produce the volume of milk necessary to make a profit.
There are various feed budgeting methods and tools available (paper and software based) and many dairy advisers who can help.

Three steps to developing a feed budget

Calculate your monthly feed demand.
Calculate your total feed deficit for each month.
Calculate quantities of each bought-in feed you require each month.

Key tips

Develop a month-by-month feed budget for the full year.
Make realistic allowances for feed wastage based on your feeding system.
Revise your feed budget when circumstances change.
Work with a business management specialist to work out your ‘break-even’ and ‘target’ feed prices.
Once you have your feed budget and your ‘target’ feed price you are ready to go shopping.

More information

Plan for profit – feed budgeting
Covers developing a monthly feed budget and allowing for waste, including:

How much feed to buy
Detailed calculation tables on monthly feed demand
Develop a month-by-month feed budget for the full year
Make realistic allowances for feed wastage based on your feeding system
Revise your feed budget when circumstances change
Daily ME requirements for different stock classes

Plan for Profit: What can you afford to pay?
Contents include:

Estimate your 'break-even' and 'target' feed prices.
What price could you afford to pay for feed and still achieve a reasonable profit? It’s important to plan well before you buy.
Work with a business management specialist to work out your ‘break-even’ and ‘target’ feed prices.
Armed with your feed budget and your ‘target’ feed price, you’re now ready to go shopping.
Document includes worksheet and net cash flow calculation examples