Conference Proceedings

Evaluating options to increase profitability on a dairy farm in southwest Victoria, Australia

B Malcolm, CM LEDDIN, JW Heard, KA Tarrant, CKM Ho, WJ Wales

18th International Farm Management Congress | IFMA | Published : 2011

Abstract

A simulation study was conducted to examine the profitability of three ‘alternative futures’ for a dairy farm facing declining terms of trade. The approach involved a case study farm, input from a steering committee and whole farm analysis involving modelling the systems over time. This provided the necessary insight into the complexity of the system, its management and effects of change on profit, liquidity, wealth and risk. The objective of the study was to compare the performance of a dairy farm business where the farm management system remained largely unchanged over a medium-term planning period (10 years) with alternative futures’ that involved modest changes to the farm management s..

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