DAIRY FINANCIAL MANAGEMENT

 

INCOME AND COST ALLOCATION GUIDE

 

PLEASE NOTE THAT VAT MUST NOT BE INCLUDED IN ANY ENTRIES

 

26 April 2000

 

 

INCOME

 

1.  MILK SALES  Net income for all milk sold.  Deduct transport charges, all levies and monthly shares deductions.  Lump sum shares purchased should be coded to Code 32.  Please also include cash milk sales.

 

2.  CATTLE SALES  Gross income (inclusive of levies, transport etc.) for the sale of cull cows, breeding cows, heifers, bull calves and oxen.  Cattle purchases and HP redemption for cattle purchases must be entered in brackets (as a negative) next to the cattle sales figure.

 

3.  OTHER DAIRY INCOME   Bags sold; levies repaid; dividend and bonus received; surplus grain sales; grazing let; land lease income; lease charges for cattle must be deducted from this cost centre.

 

4.  NON DAIRY INCOME   Any income from enterprises not directly related to the dairy such as pigs sold; potatoes etc. sold; income from any source that is not or would not have been available to the dairy enterprise but for which the costs are paid by the dairy.

 

 

EXPENSES

 

RUNNING COSTS

 

5.  VET & MEDICINE   Vet's fees; vet's transport charges; all medicines; vaccines; dosing agents; dips; milking salves, milk recording charges.

 

6.  SEMEN & AI COSTS   Semen purchases, AI gloves, sheaths and all other AI equipment and consumables.

 

7.  OTHER DAIRY EXPENSES  Stock transport; milk levies; cattle sales levies and marketing costs; abattoir fees; spares and repairs to milking machine and bulk tanks; milk filters; strip cups; ear tags; paper towels; fly control; detergents; dairy soap.

 

 

PURCHASED FEED COSTS

 

8.  COW PURCHASED FEEDS  All feeds purchased for both dry and lactating cows, whether pre-mixed or purchased as various ingredients:  dairy meal; complete feed; home-mixing ingredients - maize; hominy chop; protein supplements; HPC; bran; pollard.

 

9.  HEIFER PURCHASED FEEDS  All feeds purchased as above but specifically designated for heifers (animals from six months of age to calving).

 

10.  CALF PURCHASED FEEDS  Milk substitutes (saleable whole milk fed to calves will be coded and added here by the program); calf starter meal; calf growth meal; calf complete meal; veal finisher; all feeds purchased for this class of animal, whether pre-mixed or purchased as various ingredients.

 

11.  OTHER PURCHASED FEEDS  Purchased feeds not easily or conveniently broken down into any of the other categories may be coded here: mineral supplements (Epolfos; Kynofos etc.); molasses; LS33; transport of feeds; bought hay; bags purchased.

 

 

HOME-PRODUCED FEED COSTS

 

12.  FERTILISER  Fertiliser and lime used in the production of feed for dairy animals.

 

13.  SEED  Pasture seed; maize seed; seed inoculants used in the production of feed for dairy animals.

 

14.  WEED-/PESTICIDES  Weedicides and pesticides used in the production of feed for dairy animals.

 

15.  OTHER/TRANSPORT  Fertiliser transport; baling twine; fertiliser insurance; discount on fertilisers - in brackets; hail insurance.

 

 

LABOUR

 

16.  WAGES  Labour cash wages; manager's salary, PAYE, Medical aid & pension.

 

17.  RATIONS  Staff rations; staff's stock feed.

 

18.  OTHER LABOUR  Medical; clothing; gumboots; workmen's compensation; UIF.

 

 

MECHANICAL COSTS

 

19.  FUEL & OILS  Diesel; oil; petrol; lubricants.

 

20.  TRACTOR R&M  All tractor spares and repair charges.

 

21.  IMPLEMENT R&M  All implement other than tractor repairs & spares.

 

22.  OTHER MECHANICAL  Vehicle licences; car & bakkie repairs & spares; irrigation equipment spares and repairs.

 

 

OTHER FIXED COSTS

 

23.  INSURANCE  All insurance - all risk, vehicle, building, bond.

 

24.  ELECTRICITY  Farm and house ESKOM bills.

 

25.  R&M FIXED IMPROVEMENTS  Repairs & maintenance to buildings, fencing, roads, soil conservation works

 

26.  OTHER  Bank charges; ledger fees; income tax; consultations; accounting fees; costing services; lawyer's fees; donations made.

 

27.  SUNDRY COSTS  All sundry fixed costs - telephone, magazine subscriptions, stationery, land rental, consumable stores.

 

 

FINANCIAL COSTS

 

28.  INTEREST  Interest on HP accounts, bank accounts, lease accounts and supplier's accounts.

 

29.  DEBT REDEMPTION  Repayment of capital of loan, mortgage repayment.

 

 

CAPITAL COSTS

 

30.  DRAWINGS  Personal living expenses; school fees; personal insurance; personal medical aid.

 

31.  FIXED IMPROVEMENTS  Cost of improvements to all new buildings, dams, roads, fences - all NEW non-movables.

 

32.  PLANT & EQUIPMENT  Cost of all NEW movables bought - tractor, bakkie, feed mixer, feeders, implements - minimum value of R2,000 otherwise class as 27 SUNDRY COSTS.  Include lump sum purchases of NCD shares.