Mining your financial data

 Southeast producers can learn more through free project

The Dairy Business Analysis Project (DBAP), administered by the Universities of Florida and Georgia, helps Southeast producers analyze their finances, set future goals and make sound financial decisions. Producers submit financial data such as year-end inventories of cattle and feed, receipts, accounts receivable, accounts payable, prepaid expenses, and expenses; value of assets and liabilities.  

After the information is analyzed, producers receive:

1. Cost of production per hundredweight and per cow, on percentage and real dollar bases.

2.  Costs benchmarked with other dairies in the program.

3.  A balance sheet; income statement; “sweet 16” ratios for liquidity, solvency, profitability, financial efficiency and repayment capacity; profitability statement; equity statement; cash flow statement; and debt analysis.

4. Their business’ strengths, challenges, opportunities and threats.

5. Trends of their business during their years on the program in over 30 critical areas. This allows them to monitor progress, especially in areas important to the individual dairy’s profitability.

 Producers may enroll in DBAP at any time, although spring is the usual time in order to analyze data from the previous year.

The DBAP is open and free to all producers in Georgia and Florida, funded by grants through the Southeast Milk Inc. and a check-off of one cent per hundredweight. 

A preliminary statistical summary for both individual dairies and the whole project is calculated in May or June, and a final towards the end of the year. 

For more information, contact Mary Sowerby, University  of Florida Regional Dairy Extension, 386-362-2771 or email: meso@ufl.edu. Or Albert De Vries, University of Florida Department of Dairy Science, 352-392-5594, email: devries@ufl.edu. Or Lane Ely, University of Georgia, 706-542-9107, email: laneely@arches.uga.edu.

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