Dairy Industry Financial Benchmarking Database
14TH March 2005
Dairy Industry Financial Benchmarking Database On Track
Dairy InSight, has today announced Reel Two as supplier of the new national dairy industry database and supporting systems – following a competitive tender process.
“The benchmarking system is designed to assist farmers in growing their businesses profitably and Hamilton company Reel Two have the relevant statistics and data mining expertise, as well as experience in agricultural benchmarking software, to get the job done. Their appointment signals the next exciting stage of the project,” says Dairy InSight Investment Manager, Rebecca Austin.
“We’re now working out the detailed system design and fine tuning the databases’ Key Performance Indicators (KPI’s) which we hope to get stakeholder feedback on at the March Dexcel/NZIPIM roadshow.
The databases’ robust and timely information will help dairy farmers and rural professionals, such as accountants and farm consultants, to evaluate business performance using the same, standardised language. It will improve their business management and profitability, and sustain their international competitive advantage,” says Ms Austin.
Currently, the New Zealand dairy industry has a fragmented approach, with inconsistencies in the calculation of KPI’s. The small number of databases on offer operate independently, preventing useful comparison on a national and regional basis. A coordinated industry approach is needed to lift the use of financial benchmarking and provide a set of clearly defined and readily available performance data.
The need for a database was identified by a committee including representatives of; ICANZ, NZIPIM, Dexcel, Fonterra and Massey University. The Chairman is Graham Brown from Brown, Glassford & Co Accountants, Christchuch. A series of consultations with stakeholders to define detail around the process, data and outputs were then undertaken.
The key areas of focus for the project are:
1. 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
2. Establishment of a National Dairy Industry Database, including interfacing with tools for farmers and their professionals to improve knowledge of business performance in relation to industry “best practice”.
3. 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.