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Benchmarking

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How to use benchmarking data Key performance indicators DairyBase benchmarks Benchmarks by region

DairyBase provides a range of benchmarks for dairy farmers based on ownership, location, and production system, such as organic or winter milk farms. You can use a DairyBase benchmarking report to discuss your farm business with consultants, accountants, or bankers. The report is more impactful when discussed with an advisor.

DairyBase's benchmarking includes two types of Key Performance Indicators (KPIs): financial and physical, such as "Operating Profit per hectare" and "Cow efficiency." For data to be considered valid, a minimum of 20 farms must be in a benchmark group. DairyBase's data shows farm comparisons across various regions and highlights top-performing farms. It's essential to check DairyBase regularly as the data updates daily, and new benchmarks become available.

A wide range of benchmarks are available on DairyBase, largely based on ownership type, regional location and production system, including organic or winter milk farms.

How to use benchmarking data

There are several ways to work through a DairyBase benchmarking report - it just depends on business goals and what information is in the reports.

A benchmarking report is an ideal starting point for discussion with a consultant, accountant or banker to talk about the farm business. The impact of a report is magnified when it is discussed with an advisor.

For more information contact DairyBase.

Key performance indicators

Financial

  • Operating Profit/ha: Measure of dairy farm profitability by ha. This is the dairy operating return after an allowance for the value of change in: dairy livestock numbers; non-paid labour and management; supplementary feed inventory change; owned run-off adjustment and depreciation
  • Farm Working Expenses/kgMS: The total dairy farm cash expenditure, including labour, stock feed, and other working expenses and overheads per milksolids
  • Operating Return on Dairy Assets (%): Dairy operating profit (as above) plus owned run-off adjustment, less rent as a percentage of opening assets (last years’ closing). The return on assets employed at beginning of the year to generate the income
  • Return on Equity (%): Dairy operating profit (above) plus owned run-off adjustment plus net off farm income, less rent less interest as a percentage of opening equity (last years’ closing equity). This measures the return on the funds employed by the owner. There are two calculations - one is calculated taking into account the change in capital value of assets, the other is based on recorded costs per the financial statements (which may or not maybe re-valued)
  • Growth in Equity (%): The change in owner’s equity during the year as a percentage of opening equity
  • Discretionary Cash: This represents the cash available to meet capital purchases, debt repayments, drawings, and extraordinary expenses. Cash operating surplus less rent, interest and tax, plus net non-dairy cash income, income equalisation and net off-farm income.

Physical

  • Cow efficiency (MS as % of liveweight): The production per cow in relation to average liveweight for the herd
  • Pasture eaten (tDM/ha) and energy eaten (MJME/ha): How much of the pasture is eaten and how much feed energy each hectare produced
  • Total Supplements Used (kg DM/cow): How much the cows eat.

Valid information

To ensure the information is statistically reliable and that individual data remains confidential a minimum of 20 farms must be entered for a benchmark group before statistics become available. The greater the number in the sample, the more accurate the data will be.

DairyBase benchmarks

DairyNZ’s DairyBase has collated provisional farm data showing comparisons between seasons and information for top performing farms.

The DairyBase data gives an indication of what dairy farmers were producing last season and how much they were spending across eight regions – Northland, Waikato, West Coast-Tasman, Marlborough-Canterbury, Otago-Southland, Bay of Plenty, Taranaki and Lower North Island.

Farm working and operating costs do not include interest payments which are deducted as part of the business profit calculation.

DairyBase has a range of benchmarks available which farmers can access.

More information about the figures used

Downloads

More information

  • At least 20 farms are required for a benchmark category to be available. This is to ensure the confidentiality of farmers’ data and to avoid the identification of individual farms. Therefore for a top 50% benchmark we need to have analysed at least 40 farms.
  • Benchmarks correspond to the average values for farms in a specific category.
  • Farmers should check DairyBase periodically as farm data is entered daily into DairyBase and new benchmark categories become available once the minimum number of farms is reached. Existing benchmarks can also change as the number of farms contributing to them grows.
  • Dairy farmers can contact DairyBase to arrange the collection of physical and/or financial data for their farms.
  • The figures below show some of the key performance indicators (KPI’s) in DairyBase reports. By logging in to their DairyBase account, farmers can generate reports (tables and graphs) with benchmarks for other physical and financial KPI’s. And at district rather than regional level or by farm system type; once enough farms have been analysed.
  • Cows/ha and milksolids production per cow determine milksolids production per hectare, which contributes 85% - 90% of gross farm revenue per hectare.
  • Physical KPIs such as kg ms/cow at peak and per day throughout lactation, ms/ha total and the % drop in ms from peak to 31 December provide information about the shape of the lactation curve.
  • Days in milk, production per cow and imported feed per cow are used to calculate platform-grown pasture and crop eaten which is a key determinant of profit per hectare. Imported feed is feed that is not produced on the milking platform in the current season.
  • Labour efficiency (cows/FTE and kg milksolids/FTE) influences farm operating expenses, which in turn determines the farm operating profit.
  • Milksolids production and farm operating expenses are the drivers of farm operating profit available to pay interest charges, drawings, tax and capital purchases.
  • Farm working expenses include cash expenses only. Farm operating expenses add in depreciation and non-cash expenses to reflect unpaid family labour, changes in feed inventory and a lease adjustment if the farm owns a support block.
  • It is important to understand that farm working and operating costs do not include interest payments which are deducted as part of the business profit calculation.
  • A consistent difference between the top 50% and the whole group is that the top farmers have lower farm working and operating costs per kg ms.

DairyNZ Econ Tracker tool

The DairyNZ Econ Tracker is an online tool that brings you economic information relevant to the New Zealand dairy sector right now.

DairyNZ Econ Tracker tool

Current benchmarks by region

DairyBase financial and physical benchmarks for the 2019/20 and 2020/21 and 2021/22 (model) seasons (farms analysed as at 4/11/22).

National

Financial KPI’s (Based on data from Owner Operator farms with a full financial analysis in DairyBase)

2021/22 2020/21 2019/2020
Average Average Top 50% Average Top 50%
Number of farms (model) 661 331 654 327
Cows/ha 3.0 2.9 3.2 2.9 3.2
Kg Milksolids/ha 1,212 1,232 1,455 1,229 1,446
Kg Milksolids/cow 410 429 456 420 451
Cows/full time equivalent (FTE) 158 151 161 152 159
Kg Milksolids/FTE 64,972 64,862 73,501 63,891 71,678
Operating Profit ($/ha) 4,984 3,189 4,326 2,783 3,787
Farm Working Exps ($ FWE/kg MS) 4.70 4.57 4.26 4.49 4.26
Dairy Operating Exps ($/kg MS) 5.54 5.42 4.97 5.37

5.02

Physical KPIs (Based on data from all farms with a physical analysis in DairyBase)

2021/22 2020/21
Average Average
Number of farms 283 639
kg Milksolids/cow at peak 1.98 2.02
% drop in MS production from peak to 31 Dec 10 10
kg Milksolids/ha to 31 Dec 1 1
Average kg Milksolids/cow/day 1.7 1.7
Pasture & crop eaten tonnes DM/ha 12.5 12.4

Northland

Financial KPI’s (Based on data from Owner Operator farms with full financial analysis in DairyBase)

2021/22 2020/21 2019/2020
Average Average Top 50% Average Top 50%
Number of farms (model) 58 29 71 36
Cows/ha 2.4 2.3 2.6 2.3 2.5
Kg Milksolids/ha 788 775 984 787 930
Kg Milksolids/cow 335 341 374 339 366
Cows/full time equivalent (FTE) 130 125 130 130 132
Kg Milksolids/FTE 43,506 42,601 48,719 44,057 48,454
Operating Profit ($/ha) 2,772 1,580 2,436 1,433 2,146
Farm Working Exps ($ FWE/kg MS) 5.21 4.97 4.74 5.04 4.75
Dairy Operating Exps ($/kg MS) 6.43 6.19 5.77 6.27 5.86

Physical KPIs (Based on data from all farms with a physical analysis in DairyBase)

2021/22 2020/21
Average Average
Number of farms 29 33
kg Milksolids/cow at peak 1.68 1.78
% drop in MS production from peak to 31 Dec 15 15
kg Milksolids/ha to 31 Dec 1 1
Average kg Milksolids/cow/day 1.8 1.9
Pasture & crop eaten tonnes DM/ha 9.6 9.9

Waikato

Financial KPI’s (Based on data from Owner Operator farms with full financial analysis in DairyBase)

2021/22 2020/21 2019/2020
Average Average Top 50% Average Top 50%
Number of farms 35 162 81 148 74
Cows/ha 2.8 2.9 3.1 2.9 3.1
Kg Milksolids/ha 1,244 1,238 1,399 1,202 1,388
Kg Milksolids/cow 441 426 451 408 441
Cows/full time equivalent (FTE) 140 140 150 143 148
Kg Milksolids/FTE 61,840 59,853 67,456 58,425 65,070
Operating Profit ($/ha) 4,104 3,101 4,109 2,675 3,538
Farm Working Exps ($ FWE/kg MS) 5.87 4.67 4.40 4.60 4.41
Dairy Operating Exps ($/kg MS) 6.79 5.55 5.14 5.50 5.24

Physical KPIs (Based on data from all farms with a physical analysis in DairyBase)

2021/22 2020/21
Average Average
Number of farms 90 194
kg Milksolids/cow at peak 1.99 2.03
% drop in MS production from peak to 31 Dec 11 9
kg Milksolids/ha to 31 Dec 1 1
Average kg Milksolids/cow/day 1.8 1.7
Pasture & crop eaten tonnes DM/ha 12.4 12.4

Bay of Plenty

Financial KPI’s (Based on data from Owner Operator farms with full financial analysis in DairyBase)

2021/22 2020/21 2019/2020
Average Average Top 50% Average Top 50%
Number of farms (model) 54 27 55 28
Cows/ha 3.0 2.9 3.2 2.9 3.0
Kg Milksolids/ha 1,158 1,172 1,353 1,134 1,306
Kg Milksolids/cow 390 401 428 393 429
Cows/full time equivalent (FTE) 166 148 160 145 148
Kg Milksolids/FTE 64,756 59,521 68,197 56,857 63,368
Operating Profit ($/ha) 4,917 3,094 4,145 2,416 3,386
Farm Working Exps ($ FWE/kg MS) 4.53 4.30 3.99 4.48 4.16
Dairy Operating Exps ($/kg MS) 5.47 5.23 4.73 5.47 4.93

Physical KPIs (Based on data from all farms with a physical analysis in DairyBase)

2021/22 2020/21
Average Average
Number of farms 35 68
kg Milksolids/cow at peak 1.89 1.95
% drop in MS production from peak to 31 Dec 9 9
kg Milksolids/ha to 31 Dec 1 1
Average kg Milksolids/cow/day 1.6 1.6
Pasture & crop eaten tonnes DM/ha 12.5 12.7

Taranaki

Financial KPI’s (Based on data from Owner Operator farms with full financial analysis in DairyBase)

2021/22 2020/21 2019/20
Average Average Top 50% Average Top 50%
Number of farms (model) 104 52 98 49
Cows/ha 2.9 2.8 3.0 2.8 3.1
Kg Milksolids/ha 1,251 1,229 1,397 1,205 1,394
Kg Milksolids/cow 434 438 460 424 457
Cows/full time equivalent (FTE) 165 144 154 141 154
Kg Milksolids/FTE 71,323 63,018 70,898 59,741 70,110
Operating Profit ($/ha) 5,335 3,350 4,401 2,900 3,859
Farm Working Exps ($ FWE/kg MS) 4.36 4.18 3.96 4.16 4.01
Dairy Operating Exps ($/kg MS) 5.33 5.14 4.76 5.09 4.82

Physical KPIs (Based on data from all farms with a physical analysis in DairyBase)

2021/22 2020/21
Average Average
Number of farms 45 64
kg Milksolids/cow at peak 1.98 2.05
% drop in MS production from peak to 31 Dec 10 8
kg Milksolids/ha to 31 Dec 1 1
Average kg Milksolids/cow/day 1.6 1.7
Pasture & crop eaten tonnes DM/ha 12.3 13.4

Lower North Island

Financial KPI’s (Based on data from Owner Operator farms with full financial analysis in DairyBase)

2021/22 2020/21 2019/2020
Average Average Top 50% Average Top 50%
Number of farms (model) 74 37 75 38
Cows/ha 2.6 2.6 2.8 2.7 3.0
Kg Milksolids/ha 1,066 1,089 1,219 1,072 1,258
Kg Milksolids/cow 404 414 434 392 423
Cows/full time equivalent (FTE) 161 140 149 143 153
Kg Milksolids/FTE 65,095 57,999 64,581 55,939 64,590
Operating Profit ($/ha) 4,530 2,974 3,727 2,440 3,363
Farm Working Exps ($ FWE/kg MS) 4.58 4.42 4.20 4.48 4.23
Dairy Operating Exps ($/kg MS) 5.49 5.27 4.90 5.47 5.10

Physical KPIs (Based on data from all farms with a physical analysis in DairyBase)

2021/22 2020/21
Average Average
Number of farms 25 39
kg Milksolids/cow at peak 1.88 1.88
% drop in MS production from peak to 31 Dec 10 7
kg Milksolids/ha to 31 Dec 1 1
Average kg Milksolids/cow/day 1.7 1.6
Pasture & crop eaten tonnes DM/ha 10.4 10.4

West Coast - Top of the South

Financial KPI’s (Based on data from Owner Operator farms with full financial analysis in DairyBase)

2021/22 2020/21 2019/2020
Average Average Top 50% Average Top 50%
Number of farms (model) 62 31 64 32
Cows/ha 2.6 2.3 2.5 2.3 2.7
Kg Milksolids/ha 977 849 978 833 1,090
Kg Milksolids/cow 375 365 389 363 402
Cows/full time equivalent (FTE) 159 170 176 158 151
Kg Milksolids/FTE 59,602 62,159 68,520 57,558 60,651
Operating Profit ($/ha) 3,554 1,912 2,762 1,457 2,596
Farm Working Exps ($ FWE/kg MS) 5.02 4.82 4.38 4.81 4.29
Dairy Operating Exps ($/kg MS) 5.98 5.74 5.14 5.69 5.25

Physical KPIs (Based on data from all farms with a physical analysis in DairyBase)

2021/22 2020/21
Average Average
Number of farms <20* 64
kg Milksolids/cow at peak 1.94
% drop in MS production from peak to 31 Dec 15
kg Milksolids/ha to 31 Dec 1
Average kg Milksolids/cow/day 1.5
Pasture & crop eaten tonnes DM/ha 9.9

Canterbury

Financial KPI’s (Based on data from Owner Operator farms with full financial analysis in DairyBase)

2021/22 2020/21 2019/2020
Average Average Top 50% Average Top 50%
Number of farms (model) 74 37 76 38
Cows/ha 3.6 3.6 3.7 3.6 3.8
Kg Milksolids/ha 1,618 1,689 1,763 1,687 1,827
Kg Milksolids/cow 451 468 477 466 484
Cows/full time equivalent (FTE) 166 170 185 167 177
Kg Milksolids/FTE 74,815 79,535 88,358 77,717 85,748
Operating Profit ($/ha) 6,810 4,761 5,691 4,044 5,217
Farm Working Exps ($ FWE/kg MS) 4.69 4.38 4.14 4.37 4.08
Dairy Operating Exps ($/kg MS) 5.36 5.08 4.73 5.11 4.69

Physical KPIs (Based on data from all farms with a physical analysis in DairyBase)

2021/22 2020/21
Average Average
Number of farms 39 108
kg Milksolids/cow at peak 2.04 2.13
% drop in MS production from peak to 31 Dec 7 7
kg Milksolids/ha to 31 Dec 1 1
Average kg Milksolids/cow/day 1.7 1.8
Pasture & crop eaten tonnes DM/ha 15.5 15.7

Otago - Southland

Financial KPI’s (Based on data from Owner Operator farms with full financial analysis in DairyBase)

2021/22 2020/21 2019/2020
Average Average Top 50% Average Top 50%
Number of farms (model) 73 37 67 34
Cows/ha 2.9 2.6 3.0 2.8 3.1
Kg Milksolids/ha 1,270 1,156 1,381 1,227 1,404
Kg Milksolids/cow 434 439 461 441 460
Cows/full time equivalent (FTE) 160 156 170 157 166
Kg Milksolids/FTE 69,228 68,220 78,443 69,245 76,431
Operating Profit ($/ha) 5,041 2,861 4,199 2,881 4,035
Farm Working Exps ($ FWE/kg MS) 4.86 4.91 4.39 4.47 4.19
Dairy Operating Exps ($/kg MS) 5.66 5.65 5.01 5.28 4.79

Physical KPIs (Based on data from all farms with a physical analysis in DairyBase)

2021/22 2020/21
Average Average
Number of farms <20* 69
kg Milksolids/cow at peak 2.07
% drop in MS production from peak to 31 Dec 8
kg Milksolids/ha to 31 Dec 1
Average kg Milksolids/cow/day 1.7
Pasture & crop eaten tonnes DM/ha 11.2
Last updated: Mar 2024
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