Several of our accepted on-farm practices are keeping many sheep and beef farmers in a state of low profit and lack of belief that they can generate any more profit than they are doing now. In fact these practices tend to be recommended to farmers with the belief that they are sound. However, there tends to be very little connection with long term use of these practices and the historically poor business results from farming that are keeping our farm businesses just off survival. Here are some examples:
Recently I returned from visiting a bunch of new GrowFARM clients in a particular area of NZ. They blew me away with the sheer joy they oozed after finally discovering how to make profit from their sheep and beef farms. This was after years of being told by the industry to increase production/gross farm income/lambing percentages and eat all the dry matter they grow - you name it! They are only a few weeks into their time with us and are learning the background and principles behind how to generate sheep and beef farm profit, yet were like first year students on a new adventure! New! I thought about that – why would they not know about how to create a successful sheep and beef farm business after many years of farming?
The way we usually view our sheep and beef farms in New Zealand has unfortunately moved many farmers perspectives down a track so unhelpful that they are in danger of a life of hard labour and a challenging succession situation. This has become so dire that without knowing it many farmers are working hard for the interests of other organisations and are using their own energy, sweat and resources to do it. What really worries me is that to most it doesn't seem that bad and that reflects how insidious the problem really is.
As a sheep and beef farmer, have you ever stopped to ask yourself if you really know the pattern for generating profit from your farm business? Have you ever mulled over how it should be a lot simpler than our industry (and our annual results) seems to make it? Well, the good news is that creating profit from a sheep and beef farm business comes down to exactly that - keeping it simple!
All sheep and beef farmers need to answer these 3 questions accurately if they really want to get their hands on that consistent profit that is proving so elusive in our industry. Moving their businesses forward is not only important, it is crucial to their families futures.
Sheep and beef farmers are enjoying some reasonable returns lately, and rightly so! They produce great products (mainly meat and wool) that consumers need to stay healthy and well clothed. It is in fact very challenging for the average consumer to find good healthy food (such as meat) produced by nature and without additives of some kind these days. Fibre from the sheep's back (natural) is also very hard to beat in terms of it's attributes for warmth, durability, good looks and fire retardant properties, among others.
The focus for many sheep and beef farmers at the moment is on lifting returns "to provide a decent reward for their efforts and make farming actually worthwhile." This is mainly due to the sentiment around lack of profitability in sheep and beef farming - a lack of spare cash and the lack of options people perceive around that.
This statement may seem a little obvious and I would agree. However many in the sheep and beef farming industry unfortunately tend to confuse to two concepts, often to a point where they are accepted as one and the same. Perhaps this is a big contributor to the lack of profitability in our industry?
Putting together sheep and beef farmers of like value systems creates incredible opportunities! The power and focus created when they mastermind together for a common purpose is just what our NZ Sheep and Beef farming industry needs, and this is exactly what was created when GrowFARM clients from around NZ attended the GrowFARM National Mastermind Meeting for 2 days last week in Hamilton.
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