Rayner Reckons

Jun 11

Profit in production

Posted on Tuesday, June 11, 2013

Over the last few months, the industry talk has been about the price being offered to producers.  I've been paying a lot of attention to these discussions, particularly as I am passionate about helping producers become more profitable. 

So it was timely today to come across a press release from MLA, http://www.mla.com.au/News-and-resources/Industry-news/Kilos-and-costs#hp=highlight2&article=Cost%20of%20production

Knowing your Cost of Production is the first step for any producer focussed on improving their profitability.  I was interested to note a big variation in the Cost of Production among the producers identified in the MLA article, ranging from $0.79 to $3.92. The average across the group of 72 producers was $1.22

So what does this mean.  I reckon Cost of Production is the first step.  The second step is to work out your average price per kilogram of beef sold.  The difference between your Cost of Production and your average price per kilogram is your profit margin.  

When you know what your profit margin is, then you can start to focus on those enterprise activities which will lead to an improvement on your margin.  

As the Principal of RaynerAg, I've been working with several producers on a few exciting ways to improve their profit margin.  I reckon we will make some big differences in the next year, and I'm excited about the opportunities we have come up with.  

Jun 07

Confidence in bulls

Posted on Friday, June 07, 2013

Its great to hear this week of a record price being paid for a Poll Hereford bull.  I reckon this signals not just great confidence in the bull, but confidence in the beef industry.

Investing in new genetics does pay off.  New genetics offer your herd a permanent and cumulative effect.  Which can be a good thing in many instances.  But, if you don't do your homework, you can introduce some less desirable traits as well.  One bull can influence up to three generations, so it pays to look at all aspects of the bull and make sure you select the right one for your herd and your environment.

I'm looking forward to the Northern Beef Week, which kicks off from the 17th of June, 2013.  I reckon its a great chance to drop in and look at some great cattle before the bull selling seasons really kicks off.  I have a few places to go and see. I am looking forward to visiting Nick & Prue Lee at Pine Ridge, as well as Bruce & Helen Scrivener at Yarrowitch.  

If you are planning on visiting a few places, or you'd like a few suggestions, I'd be happy to help you!

May 30

Welcome to Rayner Ag

Posted on Thursday, May 30, 2013

I’m Al Rayner.  Welcome to my new blog.  

I am really excited about launching my web page and to start a blog.   I’m planning on sharing plenty of ideas and stories which I reckon might be helpful to your business, or at least to help you keep in touch with what’s happening in agriculture at the moment.

For the past 17 years I was working as a Beef Cattle Officer with NSW DPI.  It was a great career and I enjoyed working with a lot of interesting and inspiring people.  I worked most closely with farmers, but I also had plenty of opportunities to work with people in industry positions, researchers, and even schools.  

I’m now running my own company RaynerAg.  So what do I do? 

If there’s one thing I love doing, its working with the people who grow our food and fibre.  I love being able to share ideas and work on new ways to be more efficient, more sustainable and more profitable.

I’ve been thinking about the season a lot this week.  While there are some predictions for rain on the way, I don’t reckon it will change pasture conditions too much in the short term.  So, if you’re not thinking about some strategies for managing your calving cows next month, I reckon you need to get onto that straight away. 

If you do need to start feeding, you really want to work out how much feed you’ll need and more importantly, how much it will cost.  Planning now will help you manage calving a lot better and keep your cows close to condition for joining in spring.

Make sure you do get some advice about feeding and management strategies.  Not all the things you hear about feeding are always exactly right.  You don’t want to listen to the wrong thing and waste a lot of money on products you don’t need or are not really the right options for your cows and pasture conditions.

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