"PG NxT-STEP" from Pure Graze; the most sustainable concept for the lowest cost price
These are difficult times for the dairy farm. The low milk prices are a cause for concern for many farmers.
Could you as dairy farmers do something to turn the tide for your business, or do you have to watch your finances melt away like snow in the sun?
The answer is YES, you can arm your company against price fluctuations.
A milk producer is a raw material supplier. It has little or no influence on the selling price. By letting go of the EU's market protection, price fluctuations will become more frequent and larger.
We can in the businessmodel focus our attention on selling price, margin or cost price. The entrepreneur only has influence on the cost price of these components. Only by focusing his attention on cost price can he influence the margin.
As a result, the cost price can fall within a few years to such an extent that an income can be achieved almost regardless of the selling price.
If the company is directed on margin against this, there is a good chance that the cost price will always follow the fluctuation of the selling price. The result is varying business operations, which can always only lead to a marginal income.
We can expect the first result with variable costs. Reducing the fixed costs there and against, takes more time. However, by making these fixed costs variable, we can reduce them, after which they can be eliminated.
Cost elimination is much more effective than cost reduction when it comes to a low cost. Pure Graze can realize a cost reduction of 6 – 12 cents per liter of milk
Furthermore, foreign research shows that the relationship between production of dairy per cow and profitability on a farm has a correlation of 0.19. However, the relationship between cost level and profitability has a correlation of 0.71!
Production level per cow says little about the profitability of the company!
Pure Graze is a Dutch company that focuses on cost price reduction by maximizing grazing.
A business system has been developed for this in Denmark, consisting of various techniques that are aimed at removing everything that humans have ever devised between the cow and the grass as much as possible and thus achieving a low cost price.
Dit heeft geleid tot een bedrijfssysteem dat “Natuurlijk Werken©” heet.
“PG NxT-STEP” takes a company's bookkeeping as its focal point. The company is analyzed, looking at the strengths that can be used to reduce the cost price.
The switchover takes 2 years, with an immediate cost reduction in the 1st. year is to be expected. An experienced advisor guides the process and assists you in making the right decisions.
A Plan of Approach is drawn up beforehand, in which the opportunities and the trajectory are described. The plan is not a manual for the switchover process, but is the guideline.
Pure Graze can realize a cost reduction of between 6 and 12 cents per kilo of milk.
The businessmodel "NxT-STEP" is there to make the cows work.
Read more about it on our website: https://www.puregraze.com/advies/
On the FB page: https://www.facebook.com/PureGraze/
See how much you can save by filling in the Quickscan: https://www.puregraze.com/quickscan/
Or contact us today T: +31 546-624005
|Company 1:||Company 2:|
|Number of dairy cows:||112||98||59||45|
|Milk production (kg/cow/year):||7266||9.043||4.800||4.800|
|Cost; cents p/kg milk delivered:|
|Other roughage/milk powder:||2,53||2,04||3,62||7,18|
|Bedding etc for cattle||0,97||1,12||0,00||0,00|
|Machines depreciation, maintenance and fuel:||3,48||5,40||0,39||1,29|
|Total variable costs:||14,01||20,13||13,04||25,72|
|Milk production:||813.792 kg/jr||924.414 kg/jr||283.200 kg/jr||216.000 kg/jr|
|Total Savings:||€ 45.000,-||€ 36.000,-|