Cost of Production and Break Even Price Analysis

4 July, 2019

  The average budgeted unit Cost of Production (before interest), and Break Even Price (after interest), calculated from 2019/20 client budgets for the major commodities is shown below: On average, both the Cost of Production (COP) and Break Even Prices … Continue reading


Key Financial Ratios

4 July, 2019

Some key indicators based on predicted EBIT (earnings before interest and tax) have been calculated on the 2019/20 client budget data.  EBIT is a measure of profitability used across various businesses and industries. The average results for both the top … Continue reading


Net Farm Income Analysis

4 July, 2019

  The results of budgeted Net Farm Income per hectare, for both the top 20% of clients plus average for the group, ranked on Return on Assets is shown below: Attention to management of costs rather than income, has the … Continue reading


Rethinking Blackleg in Canola

4 July, 2019

Earlier sowing of canola requires a change to Blackleg management, demanding a greater focus on controlling upper canopy infection. Blackleg is a fungal disease that most commonly reduces canola yield through crown cankers that inhibit the flow of nutrients and … Continue reading


Grain Market Update – Wheat July 2019

4 July, 2019

The following graph shows the movement in Chicago (CBOT) December 2019 Wheat Futures price expressed in A$ and the 2019/20 APW Multigrade price delivered Port Kembla. Also included is the 10 year average CBOT December Futures price expressed in A$ … Continue reading


Grain Market Update – Canola July 2019

4 July, 2019

The following graph shows the movement in ICE November 2019 Canola Futures price expressed in A$ and the domestic canola price delivered Port Kembla. Also included is the 10 year average ICE November Futures price expressed in A$ and the … Continue reading


Wool Market Update – July 2019

4 July, 2019

The following graph shows the AWEX Eastern Market indicator (EMI) in cents per kilogram clean, from August 2009 to date. The fall in the AWEX EMI has continued since the previous newsletter in April 2019, with the current price at … Continue reading


Interest Rate Update – July 2019

4 July, 2019

The following graph shows movements in both the 6 month and 3 year Bank Bill yield rates, for the period January 2016 to date. These rates are wholesale rates which are net of any margin charged by financial institutions. It … Continue reading