Last week we've hosted a grazing course meeting. Because the world is evolving quite rapidly, people want clarity. We give you this clarity by presenting you the numbers of how the world looks through the eyes of Pure Graze.
In the public discussion about sustainability and CO2 emission we can see that the focus is mainly on sustainability that will cost the farmer and that the consumer is not always prepared to pay for this cost. Where's the profit here?
Part of the Grazing Course introduction was a profit and loss account made based on PG NxT-STEP® Farming, that gives an example on what a sustainable, nature-inclusive businessmodel looks like. https://puregraze.com/nxt-step-farming/wat-is-nxt-step-farming/
In this example, all of the green fodder is being grazed and directly converted into milk, in order to achieve an as short as possible cashflow. Winter feed is bought externally and there is no form of mechanisation present on the farm.
It's a biological farm with 46 hectares that is close to home, fully grazable with a cow occupance of 3 cows/ha that give 4.000kg of milk per year, withour powerfeed.
What's important here is to understand the order in wich the profit and lost acount is made up of. It deviates from the normal composition. Normally, the income of the farmer comes last. It's essentially what's left of the company income.
The position of an entrepreneur should be first. They are the ones that make it all possible, after all. Because if the entrepreneur doesn't come out of bed in the morning, nothing will happen.
The results are ranked in order of importance.
First your income, milk and others...
...then the expenses:
– Income entrepreneur
– Costs for the bank
– Rent or taxes of your plots
– Other expenses
Then we'll get to the variable expenses
These expenses are being made with the goal to earn more, as an investment. They should lead to a higher income, otherwise it's not a good investment to make.
Hopefully you understand what I mean here; first you'll pay the most important person (you), then the general costs, then the variable costs.
The profit is around €188.000,- (53%) with a revenue of €354.000,- where the entrepreneur already got €60.000,- as reward. In total an excess of €250.000,-
Shoot your shot...
My question to our students was, shoot your shot, tell us where the mistakes are. So now I'll ask you gain, where are the mistakes? I'm looking forward to your comments.
Check out the complete calculation here >>>> CLICK HERE
Triggered and want to know more?
Participate in the Grazing course and help yourself to a lower cost price by using the knowledge and know-how of the Pure Graze Coaches.
Or participate in our E-Learning PG NxT-STEP® Farming: https://puregraze.com/en/product/course-package-nature-inclusive-agriculture/