Strengths of the business:
The MDF is able to achieve its profitable production levels because of:
High stocking rate;
Relatively simple, self-contained system;
- Capable farm manager;
- Attention to feed margins;
- Not much debt; and
- Is in God’s own country! (Or at least in the best dairying area in the world)
Challenges for the business into the future :
At a high stocking rate the challenges to the business are in the form of risk:
- Low water allocation;
- High feed price;
- Low milk price; and
- Is dependent on a good operator.