Terry Kilday and Travis Gordon from the Camden Group in Canterbury, New Zealand, delved into the crucial role of budgeting in dairy farm management with REX host Dom George. Kilday and Gordon shed light on their successful partnership with Dairy NZ, which has resulted in the creation of a budget for Willsden Farm that has generated impressive returns.
The Camden duo stressed the importance of understanding and controlling costs, also offering valuable advice on how to strategise for the upcoming season.
"An important reason to do a budget is to lay down your path in front of you for what you are wanting to achieve in the coming season, not only just production-wise but financial-wise as well," Gordon said.
They highlighted the importance of being consistent with their farming systems, measuring, monitoring, and managing their financials, and forecasting for the season. They also share how their involvement with Central Plains Irrigation helps them understand Canterbury's patterns and prepare for dry years.
In terms of profitability, the duo believed this season to be average and emphasised the need to manage cost structures effectively.
"We would still like to see some cost pressures come out and inflation pressures come down, and obviously we always want to see a bit more in the payout as well."
A significant point made in the conversation is the importance of investing in people, considered as the most valuable asset on any farm. The duo stressed that costs related to their staff, health and safety, and resources should not be compromised.
Listen to the full chat between Terry Kilday, Travis Gordon and Dominic George above.