No this is not reffering a form of diversifying that probably would beat everything in terms of Gross Margins.We are talking about the grass eaten by livestock.
Holmes & Sackett have in their latest Aginsight report compared several enterprises and Agistment has proved the most profitable for the second year in a row.
Agistment came in at about $27/ dse, which was $3 above the 2nd ranked enterprise,trading cattle and $13 higher than beef breeding.
Trading cattle maintains the long term lead with an 11 year average of around $29/ dse.
Now throw in the KLR System and all three of these could be performing much higher.KLR graduates know Grass is King and is the most important resource we have to sell.Using the KLR system we can, with the tools provided know whether to sell that grass to animals we own or someone else.
Do these figures mean breeding has gone out the door - no definitely not - you must look at your country and the best enterprise to run on that block.
Where KLR helps is to know what it costs to produce that weaner and is he Underpriced and worth keeping or Overpriced and better to cash out today and take a handsome profit.
Don't forget to sell your grass to the most profitable enterprise and if it is agistment - great - no capital invested in livestock and regular cashflow - can't argue with that.
Holmes & Sackett website : www.hs-a.com.au
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