BUSINESS PLANNING | Бизнес Планирование

Financials

​AMG Pastoral Ltd has skilled financial managers within our team that have a specific understanding of farm financial budgeting for large pasture based dairy businesses. AMG Pastoral Ltd will prepare full economic models to show the financial feasibility of the proposed project.  The analysis would assess the expected gross income from the new dairy system, and the fixed and variable costs of production, to determine the net profit for the first 5 years of operation.  The assessment will also include sensitivity analysis based around movements in milk price and production, showing the likely net profit after both positive and negative movements with these two drivers.  This net profit will then flow through to determining the overall rate of return on the investment.  Based on the cost of finance and availability of state subsidies an assessment into the repayment capacity of the investment would also be made.





Production

​An AMG Pastoral Ltd farming system bases production models on maximising pasture growth, but provides for seasonal feed deficits through the use of quality supplements for lactating animals.  This is detailed in the long term feed budgets provided as part of the assessment.  Accurate production projections can be made from year 1 through to year 5.  





Farm Infrastructure

AMG Pastoral Ltd undertakes a full study to determine the viability of the Investors asset. Existing infrastructure (if any) will be taken into account with full projections given of any further investment that will be required.




Soils/ Herbage



The soil is one of the most important aspects to any pasture based farm.  AMG Pastoral Ltd’s would take soil samples from the property and have them analysed at a laboratory in New Zealand. From the soil analysis we will also asses the fertility of the current soils.  We will provide specific advice on what fertiliser needs to be applied to get soil nutrients to optimal levels ensuring the maximum amount of grass and crops will be grown. The soil type will have a large bearing on the amount of animals that the farm can carry. The farms nutrient holding and drainage characteristics are critical to successful pasture based farming. Different species of grasses work better in different geographical locations and in different parts of the world.  AMG Pastoral Ltd would undertake an assessment into other potential new grass species that we would consider of benefit to the farm property.  We will also consider and recommend the most appropriate fodder crops.


Pasture Growth Analysis

Based on the climate, soil and pasture data AMG Pastoral Ltd will establish the projected annual grass growth of the farm.   This will enable a calculation to project the annual pasture surplus or deficit.  Any deficit will mean good quality supplements will need to be brought into the dairy system.  A full monthly feed budget and recommendations around feed will be given.
The feed budget will be a vital management tool for farm staff indicating the likely timing of silage and hay making, and also enabling the pre purchase of any fodder, maize or concentrates that might be brought into the system.  It is essential to maintain a grazing window of between 1,500 and 2,800 kgDM/ha throughout the grass growing season.  The feed budget will also aid in the assessment of the properties initial and potential carrying capacity as the amount of grass that the property is able to grow will ultimately determine the number of cows the property can feed. As soil fertility improves and pasture species become established it is envisaged that the carrying capacity of the property increase. Click here to view the cashflow movement chart.


GPS Mapping​​

A GPS farm map will be provided that accurately plots your asset. The farm map is a vital farm management tool and will be used in numerous parts of the property upgrade including farm design and pasture monitoring.AMG Pastoral Ltd will determine the best location for cow roads, and provide via a GPS map the exact location of internal and external fencing, determine the optimal number of paddocks and their size.  The GPS map will show the exact location of water troughs and water lines that connect to them.  The assessment will itemise the kilometres of internal fencing, the number of troughs required and the amount and size of water pipes and pumps needed to ensure cows have access to good quality high volume water while grazing.





Road Map

The report will conclude with a roadmap from the start of the process to inception. AMG Pastoral Ltd will provide a detailed timeline documenting when all the development requirements need to begin and when they should be expected to be commissioned.  This is a very important part of the assessment, as it will detail exactly when the farm can be expected to produce its first litre of milk and first profits.



Risk Management



Risk is an important aspect of any business.  The uncertainties of weather, yields, prices, government policies, global markets and other factors can cause wide swings in farm income.  Risk management involves choosing among alternatives that reduce the financial effects of such uncertainties.  AMG Pastoral Ltd will undertake a risk analysis for the proposed business based around five general types of risk - Production risk, Price and market risk, Financial risk, Institutional risk and Human and personal risk.

AMG Pastoral Ltd will determine the best location for cow roads, and provide via a GPS map the exact location of internal and external fencing, determine the optimal number of paddocks and their size.