Tammac
Consultants cc 

DAIRY FINANCIAL MANAGEMENT AVERAGES  
The latest Dairy Financial Management Averages are posted here each month. These are rolling twelvemonth averages, expressed in various ways. Please feel free to use the information.  
Download the latest Dairy Financial Management Averages and YearonYear Comparable Financial Averages  
The
Dairy Financial Management Averages report includes columns labelled L/CIH
(litres per cow in herd). The idea behind these numbers is to make
meaningful betweenyear comparisons. The unit of currency, instead of
being rands, is litres. The validity of the interyear comparisons
assumes that the price of milk will track the rate of inflation. I've prepared comparative tables of the group's 12monthly averages in L/CIH each year over the last four years. Hopefully you will find this interesting if not useful. 





Annual
average milk price and cost of production excluding financial costs,
drawings and new capital items as at 

The graph below is the monthly retail low sulphur diesel price in KZN inland since January 2016. Over this period, the actual diesel price has increased by an average of 0.8% per annum (r^{2} = 83.2%) and the deflated price (Dec 2016 = 100) has increased by 0.4% pa (r^{2} = 61.4%). 

The following
graph depicts the consumer and producer whole milk price between Jan
2000 and Jul 2014. Note that the scale is the same but the two graphs
are on different axes. The producer received 35.0% of the consumer's
rand in 2011, 37.2% in 2012, whereas in 2013 he
received 37.5%. To date, Jan to Jul 2014, the producer received 39.6%
of the consumer's price. 



Below
is a graph of the annual average composite fertilizer prices. The actual
composite fertilizer price has increased by an average 10.5% per annum
since 1993 (r^{2}
= 92.2%). When one adjusts the price by the milk price and expresses each years fertilizer price in litres  how many litres does it cost to buy a ton of composite fertilizer?  then we find that the real fertilizer price has increased by 3.2% per annum (R^{2} = 57.9%). 





Dairy meal makes
up the biggest expense item of our group. The actual average price of
dairy meal (Meadow's Budget Pride 14% being the measure of choice here)
has increased by 8.1% per annum (R^{2}
= 92.9%). The real price of dairy meal, what it costs in terms of litres of milk, has increased by 1.28% per annum (R^{2} = 35.1%). Over the period of this analysis, the price of dairy meal has varied from 634 (in 1997) to 916 (in 2003) litres of milk per ton. In 2013 it averaged 915.6 litres of milk per ton of dairy meal. 



Below is a graph
of the monthly composite fertilizer prices and the price of dairy meal
(as reflected in the price of Budget Pride 14%). Please note that the graphs are not of course on the same axis. 



This page last updated 16 April 2020  
