DAIRY FINANCIAL MANAGEMENT
INCOME AND COST ALLOCATION GUIDE
26 April 2000
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.
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.
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.
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.
28. INTEREST Interest on HP accounts, bank accounts, lease accounts and supplier's accounts.
29. DEBT REDEMPTION Repayment of capital of loan, mortgage repayment.
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.