What is over-capitalisation, what does it look like on a dairy farm and how does it impact your business performance? It is important to be aware of how over-capitalisation can add to your business’s cost of production – adding to both cash and non-cash costs.

This month, Jake Musson (Data Analyst – Dairy Australia) describes over-capitalisation in a dairy business, the impact it can have and the risk it can create, particularly in times of volatility, if not managed well. 

Useful resources related to this podcast:

·       Jake Musson (Dairy Australia) – NSW System Performance presentation (~19:20 minute mark for ‘Plant and equipment vs. Depreciation)

·       Tower of Resilience (John Mulvany)

·       Farm Business Snapshot calculator 

·       NSW Dairy Farm Monitor reports

This podcast is an initiative of the NSW DPI Dairy Business Advisory Unit – further information and resources are available here

It is brought to you in partnership the Hunter Local Land Services 

Please share this podcast with your fellow farmers and colleagues and feel free to contact us with suggestions or comments via this email address [email protected]

Further NSW DPI Dairy channels to follow and subscribe to include;

NSW DPI Dairy Facebook page

DPI Intensive Livestock Twitter feed

NSW DPI Dairy Newsletter

Transcript here

Produced by Video Lift

The information discussed in this podcast are for informative and educational purposes only and do not constitute advice.