Fonterra Council Congratulated

Fonterra Council Congratulated

A Waikato-based farm business management specialist has congratulated the Fonterra Shareholders Council for ordering a review of dairy industry farmer-funded research strategies.

Peter Floyd says that the Council has every right to be concerned that productivity targets are not being met.

“There’s plenty of evidence that the current focus on production benchmarking indices is holding the dairy industry back,” says Floyd.

“I believe if they adopted profit indicators, the 4% productivity gains the industry wants could be achieved within the next 18 months.”

Floyd points out that in each of the past three years, farmers using the DairyPoint farm business optimisation system have achieved profit increases averaging 18% from production gains of 5%, and profits for the current season are forecast at over 20% in spite of a reduced payout.

“I don’t know why has it taken so long, but perhaps now somebody may actually be prepared to look objectively at applying profit-led business technologies,” he says.

“Significant productivity gains are already possible with existing farm technology. What is lacking is the correct business focus.”

Peter Floyd is the managing director of eCOGENT.biz

ENDS

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