OVER ALL ECONOMY FOR MILK PRODUCERS

Transcription

1 OVER ALL ECONOMY FOR MILK PRODUCERS 1 = 7.45 DKK Table 1. Farm income for all Danish dairy farms (conventional and organic) during the past five years Year Number of farms in sample 2,348 2,354 2,263 2,165 1,624 Number of farms in total 3,449 3,616 3,408 3,328 3,109 Number of cows Number of Ha In 1,000 DKK Gross Income 5,232 5,586 6,267 6,663 6,256 Unit related costs 2,553 2,860 3,195 3,165 3,349 Contribution margin 2,679 2,726 3,071 3,498 2,907 Cash capacity costs 1,435 1,526 1,649 1, Depreciation EBIT , Decoupled EU-payments Net financial costs Farm income Cash flow before investments and debt repayment Equity 5,188 5,058 4,592 4,523 4,057 Provisions 1,702 1,609 1,739 1,930 1,755 Debt 22,119 22,884 23,756 24,490 25,610 Total Balance 29,009 29,551 30,086 30,943 31,422

2 Table 2. Farm income for conventional (large breed) dairy farms sorted according to herd size Number of cows GNS Number of farms in total 2, , Number of cows Ha, Kg ECM per Cow/year 10,181 9,423 10,142 10,275 10,319 10,414 In 1,000 DKK Contribution margin 2,852 1,031 2,361 3,756 5,368 8,465 Cash capacity costs 1, ,492 2,381 3,352 5,217 Depreciation ,255 1,566 EBIT ,682 Decoupled EU-payments ,114 Net financial costs ,337 1,762 3,007 Farm income Salary Farm income after owner salary Total Assets 31,842 15,462 28,436 41,209 54,394 71,400 Equity 3,892 5,378 4,133 2,364 4, Key figures Soliditet, % 12% 35% 15% 6% 8% 0% Return on farm assets 0.8% -0.4% 0.6% 0.8% 1.4% 2.1% Operating margin, farming activities 3.8% -2.6% 3.0% 3.6% 6.1% 7.5% Asset turnover ratio, farming activities productions price pr kg ECM % of rented land 30% 23% 28% 32% 34% 35% Farm assets per cow 163, , , , , ,014 Farm income in 1,000 DKK > 400 Best 1/3 Average Bottom 1/3 Number of cows Figure 1. Spread in operating results - full time dairy farms with large breed sorted according to size

3 Table 3. Investment and financing for conventional farms with large breed sorted according to herd size Number of cows Gns, Investments Amount in DKK Buildings ,192 Equipment, fixtures and fittings Machinery Land improvements Total investments, production facilities ,440 2,244 Depreciation ,255 1,566 Net investments, production facilities Land Milk quota etc Net investment, farming ,206 Cars, private housing and other Total investments ,378 CASH FLOW AMOUNT IN DKK Cash flow before investments and debt repayment over 400 Net liquid funds ,475-1,635-2,498 Self-financing ratio, % 40% 130% 36% 23% 95% 32% Depreciation coverage DKK per cow/year Net investments, production facilities/cow 276-1, ,235 DKK pr. Cow 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,000 3, , ,084 1,432 4, , ,773 2, , , , Bedste 1/3 Ringeste 1/3 Bedste 1/3 Ringeste 1/ Cows Cows 833 Realized loss on derivates ect. Other debt Interest Overdraft interrst Bank loan interest Mortgage Financial incomes Net Tenancy Costs Figure 2: Finansial cost pr cow convention large breed dairy farms. The average for the best 1/3 and the bottom 1/3

4 DKK pr. ECM > Herd size, number of cows Figure 3: the development in the average produtions price pr. kg ECM, inclusive owner Salary and renumination of the farming assets. The production price 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Over 400 Herd size, number of cows Cash flow higher than depreciations Cash flow between 50 % and 100 % of depreciations Cash flow less than depreciations Negative cash flow Figure 4. Comparison of cash flows before investemens and debt repayments with the level of depreciations

5 Tabel 4. Farm income for dairy farms according to breed and management method Large breed Jersey ORGANIC CONVENTIONAL ORGANIC CONVENTIONAL Number of farms 273 2, Number of cows Ha, Kg ECM per cow 9,029 10,156 8,357 9,154 Sales price DKK per kg ECM production price DKK pr kg ECM Amunts in 1,000 DDK Contribution margin Cash Capacity costs 1,956 1,796 1,456 1,625 Depreciation EBIT 1, , Decoupled EU-payments Net financial costs 1, Farm income Farm assets 32,766 29,693 24,010 23,210 KEY FIGURES Equity-to-assets ratio. % Farm asset returns.% Operating margin;% Asset turnover ratio Number of cows per ha in rotation % of rented land

6 BUSINESS CHECK Cattle 2015 Table 1. Main results for Conventional large breed herds from Farms in sample Kg ECM per cow, delivered 9,227 9,619 9,894 10,361 Sales price per kg ECM DDK PER COW Gross Income 26,663 30,290 31,119 27,440 Feed 13,555 15,261 14,755 14,485 "Veterinary and other unit realted costs" 2,382 2,432 2,495 2,502 Total Unit related costs 15,937 17,693 17,250 16,988 Contribution margin 10,726 12,597 13,870 10,452 Labour costs (incl, owner salary) 3,818 3,905 4,191 4,104 Maintenance, energy etc, 3,050 3,173 3,396 3,085 Rental and capital costs 5,062 4,792 4,685 4,676 The result of the year -1, ,598-1,412 Break even contribution margin 11,930 11,870 12,272 11,865 KEY FIGURES Production price per kg ECM Feed cost per kg milk Return on assets, Dairy

7 DDK pr. Cow 11,863 1,192 3,632 10,069 10, ,062 2,902 12,464 1,233 3,964 13,377 2,936 2,636 3,031 4,104 4,155 4,237 Break even CM Contribution margin Break even CM Contribution margin Break even CM Contribution margin Other capacity costs and cost of NWC Equipment incl. energy Buildings Labour (inkluding owner salary) Conventional, large breed Conventional, Jersey Organic,large breed Figure 1: The relation between achieved contribution margin and break even margin in DKK. pr. kg ECM, Del Conventional, large breed Organic,large breed 3.75 Conventional, Jersey Organic farm gate price in Conventionel farm gate price in % 20% 40% 60% 80% 100% Pct. of the dairy farms Figure 2: The spread in the production price or kg ECM. Source: Business Check Kvæg 2015 DKK pr. 100 FEN(1 FEN =7,43 MJ NEL) conventional, loamy soil conventional, sandy soil with irrigation conventional, sandy soil without irrigation Organic, sandy soil % 20% 40% 60% 80% 100% Percentage of farms Figure 3: The spead in the production price for roughage. Source: Business Check Kvæg 2015.

8 10 YEARS OF DEVELOPMENT - Dairy farms Table 1. From 2006 to 2008 the value of the land has partly been estimated according to the public assessment, while it as of 2009 and onwards follows the fair value of the land. The change of the principles of estimation means that the assets are not YEAR Number of dairy farms 4,668 4,410 4,202 3,737 3,719 3,449 3,616 3,408 3,328 3,109 Number of cows Ha, Kg ECM per cow 8,481 8,583 8,603 8,799 8,813 8,739 8,891 9,121 9,565 9,978 Sales price, DKK per kg ECM Sales price, DKK per kg ECM, 2014 prices Income statement INCOME STATEMENT IN 1,000 DKK PR, FARM Contribution margin 1,511 2,049 2,275 1,264 2,254 2,679 2,726 3,071 3,498 2,907 Cash capacity costs ,063 1,176 1,292 1,435 1,526 1,649 1,787 1,790 Depreciation EBIT , Decoupled EU payments Net financial costs , , Farm Income Farm Income (2015 prices) , Balance Sheet BALANCE SHEET IN 1,000 DKK Total assets 21,177 25,933 29,632 28,402 30,236 29,009 29,851 30,085 30,943 31,422 Gæld i alt 10,999 14,392 17,542 18,975 20,968 22,119 22,884 23,755 24,490 25,610 Return on Farm Assets PER UNIT (CONV, LARGE BREED) Contribution margin per cow 10,138 11,619 13,321 5,151 9,947 11,850 11,064 13,534 15,165 10,324 Productions price, DKK pr kg ECM, large breed Productions price, DKK pr kg ECM, large breed (2015-prices)