Financial Benchmarking On Its Way For Dairy Ind.
MEDIA RELEASE – 14TH DECEMBER 2004
For Immediate Release
Financial Benchmarking Database On Its Way For The Dairy Industry
The dairy industry’s leading funder of research and industry-good activities, Dairy InSight, is behind the development of a new database benchmarking system to assist farmers in growing their businesses profitably.
Dairy InSight Chief Executive, Peter Bodeker, says “The Dairy Industry Financial Database and Benchmarking project was included in the 2004/05 funding round because Dairy InSight believes it to be of great benefit to farmers and rural professionals alike. Its aim is to bring together a wide range of valuable information and key performance indicators (KPI’s) by which farmers and their professionals can improve the management and profitability of their arming businesses and ultimately helping them to sustain their international competitive advantage.
Currently the information is fragmented with a small number of databases operating completely independently, thereby hindering useful comparison on a national or regional basis. Accountants and Farm Consultants will be the primary users of the National Dairy Industry Database in conjunction with their farmer clients. The information will be accessed only by accredited rural professionals. The key areas of focus are:
Standardised Financial KPI’s and Benchmarking Reports, including a financial benchmarking annual report for individual dairy farm businesses produced by rural professionals. The objective is to achieve widespread adoption and understanding of the reports.
Establishment of a National Dairy Industry Database, including tools for farmers and their professionals to improve knowledge of business performance in relation to industry “best practice”.
Strengthened Economic Survey and Industry Reporting with national statistics available more quickly as a result of collection of farm financial data at source from Accountants and other accredited providers.
A KPI Working Group was established in 2003 with participants from ICANZ, NZIPIM, Dexcel and Massey University. Out of this group came the proposed Dairy Industry Financial Database and Benchmarking Project aimed at producing a National Dairy Industry Database.
Following this, a Steering Group was established in October 2004 with Graham Brown from Brown Glassford and Co Ltd, Chartered Accountants, as its Chairman and a Project Manager was appointed. The committee has undertaken a series of consultations with stakeholders such as Accountants and Farm Consultants working to define detail around the process, data and outputs.
Mr Brown says “Now that we have a defined set of standard KPI’s and a Financial and physical Benchmarking Report, the next step is to work with a vendor on the development of information systems and establishment of an operational platform to support both the National Dairy Industry Database and Industry Reporting.
We are currently advertising for “Registrations of Interest” for this work. Closing date for receipt of the ROI’s is Friday 17th December and we should have the vendor selected and on board by the end of March”.
This project has come about due to collaboration and cooperation between professional groups serving the dairy industry and will take business performance measurement to a level of focus not previously seen in the New Zealand dairy industry.