Livestock Farm Monitor Project
Livestock Farm Monitor Project Report 2014/15
Victorian livestock farm profitability increased from 2013/14 to 2014/15 according to the latest Livestock Farm Monitor report. Average return on assets increased from 1.8% in 2013/14 to 2.1% in 2014/15. Additionally, gross farm income increased from $569/ha to $633/ha, return on equity increased from 0.6% to 1.5% and earnings before interest and tax (EBIT) increased from $42/ha to $133/ha.
The increased profitability was mainly a result of increased commodity prices, in particular beef. Stocking rates were slightly higher and there was an increase in beef, lamb and wool production per hectare. While beef prices rose dramatically in the second part of the financial year, financial performance did not increase as much. This was due to timing of sales generally occurring before the prices rose, but also below average seasonal conditions. Long term average rainfall over all participants is 685mm, while an average of only 532mm was received in 2014/15. Subsequently, producers spent more on supplementary feed and agistment than in the previous year.
Overall, profitability improved across all regions.
The Livestock Farm Monitor Project analyses the financial performance of participating livestock farms across Gippsland, South West and Northern Victoria, delivered jointly by the department and Rural Finance.
The project has a 40 year history in Victoria, providing decades of livestock farm performance information and comparative data for the livestock industry, Government, and researchers to make improved planning and management decisions.
The project aims to:
- monitor trends in farm production and profitability
- provide benchmarks for livestock businesses in the project areas
- evaluate the differences between top performers and other farms
- provide feedback to farm participants
- provide a historical dataset of farm comparative analysis information.
The project's report details the financial and production performance of participating livestock farms and recognises geographic and industry trends. The data is independent and rigorous and does not identify participating farms.
The report gives livestock farmers the opportunity to make objective comparisons against similar farms in their own region. These comparisons can identify areas where farmers can potentially make improvements that can lead to increased efficiencies
Livestock Farm Monitor Project Report 2013/14
Overall Victorian livestock farm profitability increased from 2012/13 to 2013/14 according to the latest Livestock Farm Monitor report. Average return on assets doubled from 1% in 2012/13 to 2% in 2013/14. Additionally, gross farm income increased from $484/ha to $569/ha, return on equity increased from -1% to 1% and earnings before interest and tax (EBIT) increased from $9/ha to $42/ha.
The increased profitability was mainly a result of improved seasonal conditions. This allowed an increase in stocking rates and more beef, lamb and wool production per hectare, as well as reduced expenditure on supplementary feeding and agistment. Increased lamb and beef prices also contributed
to improved performance, although wool prices remained soft.
The improvement in profitability was seen across all regions.
Summaries of results for recent years of the project
After good prices and seasonal conditions in 2010/11, the 2011/12 year saw a softening of commodity prices and more challenging seasonal conditions, particularly in the South West. Accordingly, livestock farm operating profit was lower compared to the previous year. Even so, the average operating profit reported in 2011/12 of $144/effective hectare was higher than two years ago which highlights how exceptional the 2010/11 year was.
The Livestock Farm Monitor Project analyses the performance of 110 livestock farming operations across Victoria. Profitability and production information at the whole farm and enterprise level is reported on. A total of 63 wool, 61 prime lamb and 69 beef cattle enterprises from across Gippsland, North East and South West Victoria participated in the 2010-2011 project.
The Livestock Farm Monitor Project analyses the performance of 109 livestock farming operations across Victoria. Profitability and productivity information at the whole farm and enterprise level is reported on. A total of 69 wool, 65 prime lamb and 66 beef cattle enterprises from across Gippsland, North East and South West Victoria participated in the 2009-2010 project.
Hard copies of recent reports 2012-13 , 2011-12, 2010-11 and 2009-10 (Livestock) and past reports 2008-09 (Sheep), 2008-09 (SW Vic), 2007-08 (Sheep), 2007-08 (SW Vic), 2006-07 (Wool), 2006-07 (SW Vic) can be obtained by contacting our customer service centre on 136 186.