Managing a profit squeeze (Part 2) | Ep. 42

How are Kiwi dairy farmers managing their way through the current economic climate to maintain their profitability? In Part 2 of this series, you’ll hear from Waikato owner operator John Bluett, and Canterbury herd-owning lower-order sharemilker Kylie Marriott. John and Kylie share their approach to coping with cost increases, how they calculate profit from various inputs, how they budget when things are changing so quickly, and what they’ve learned from previous tough times.

Notes
DairyNZ budgeting templates
Mark and Measure course
Budget Case Studies
Budgeting when inflation is high
Dairy operating profit
Dairy Training's Business by the Numbers course

Chapters
1:50 – Who are John and Kylie?
3:40 – Kylie’s journey from contract milking to lower-order sharemilking 
5:05 – John and Kylie explain their farm production systems
8:30 – How they’re dealing with rising farm costs
12:40 – Kylie’s farm business principles 
14:40 – Kylie’s debt aversion
15:40 – John’s farm business principles
20:05 – Calculating profit made on various inputs 
22:11 – John’s budgeting approach 
25:10 – Kylie’s budgeting approach 
26:33 – Lessons learnt from previous downturns