BRICK - FutureBeef
Contents
1. A summary of the components esses nennen eene nasse a E saa s dai aeda satia dans 2 Concepts underpinning the BRICK c cccccccssssssssssecececessesesseseeeeeesseeseaeeeeeesceseesauaeeeeeessesseeuaeeeseesseesees 3 Management accountlhg eec Face tede ee todas e docu ebd Fou ae dede ducvouts Eaei 3 Ad lt equivalents ertt em tere bem tede tr erede ever utet patere even 3 FIXEd aNd Wariable COSUS coco E 3 CashCow key performance indicators c ccccccccsssssssscecececessessaeceeceseseseaeaeceeeesseeseasaecesecesseseaeaeeeesens 3 Using the BRICK o o oeste tiae eder MAD e E C eC E E 4 EVIT C lop n 4 Elia eM ML 5 hil g unim c i 5 Mee T P 6 The combined b siriess eec eere rane RR en ep er x o eerte posue rana pea eee Paene aE En 6 Herd structure and mating Ae ccssccccccecsssessssesecececsesesseaeeeeeesseesesaeseseeecsssesesaeaeeeeeeesseseaeaeeeesens 6 Class of cattle description at ClOSING cccscscccccceesssesssseceseceseesesesaeceeecesesseasaeeeeeceseeseaeaeeeeeesseesaes 7 Cattle transactions and transactions entry sessanta aa 8 Calculators ERE 9 Livestock trading calculations summary calculations and summary of results 9 Key performance Indicators cene e oett ee raise eet2. Forest Southem Forest Central Forest Northern Downs Northern Forest Liveweight production Ratio 0 4 0 35 03 Upper e Lower 0 25 Lower AVERAGE 0 2 gt 2013 2012 2011 01 2010 0 05 o e Southem Forest Central Forest Northern Downs Northern Forest Map of Cashcow Productivity Regions wT Naviaation Data Entry Calculators 7 Livestock Tradina Calculations Summary Calculations Summarv Res Ml m erst 10 Error messages and alerts The BRICK has built in error messages and alerts that will make checks on user data as entry occurs ERROR Check deaths section in the Livestock trading calculation sheet error as it appears below refers to potential entry errors in the data particularly sales or closing livestock numbers This error message checks that mortalities are positive If mortalities are negative more stock are being sold than are available than this error message will appear SOLUTION Check input data is right If input data is correct usually it means data is missing Consider the impact missing data might have on results before continuing Return to Navigation Page Possible input error Check Livestock Trading Calculations tab for negative mortalities 30 06 2013 30 06 2012 30 06 2011 30 06 2010 30 06 2009 20 06 2011 20 06 2012 20 06 2011 n n6 204n anina 2nna Figure 11 Check Deaths section error All other e
3. diet to balance primary deficiencies speeding up digestion thereby increasing the rate of pasture or hay consumption thus energy intake Total capital The total value of the capital of the farm business such as land improvements livestock plant and materials Total gross margin The sum of the gross margins of all the enterprises or activities in the farm plan Total liabilities The total value of the liabilities of the farm business such as bank debt unpaid accounts tax due etc Vaccine Injectable usually product that causes development of immunity against an antigen usually an infectious disease agent Variable costs Costs which change according to the size of an activity The essential characteristic of a variable cost is that it changes proportionately to changes in enterprise size or to change in components of the enterprise 18 Weaner Calf permanently prevented from suckling its dam at the end of the reproductive cycle Weaner production Lactation rate retained cows multiplied by average weaner weight Weaning rate mated cows Cows weaning a calf as a percentage of those mated the previous year Usually difficult to calculate as herd restructures and culling during pregnancy often prevents accurate information being available Can be derived from multiplying annual pregnancy rate by 1 foetal and calf loss rate Weaning rate retained cows Cows weaning a calf as a percentage of closing numbers within a group
4. is simply a big mob of mathematics you can do with a pencil but takes away the pain by doing the calculations in a standardised way With strong support from the CashCow team led by Professor Michael McGowan UQ Geoffry Fordyce QAAFI conceived the idea and wrote the first versions of the BRICK Well respected farm business advisers Dr Phil Holmes and Tom Newsome provided technical support Feedback from many such as RCS and beef producers who tried early clumsy versions was gratefully received Tim Moravek a well respected DAF Queensland government economist road tested the BRICK and with assistance from Dave Smith DAF has polished and packaged it for general use Gordon Simpson assisted with programming measures All help was greatly appreciated Geoffry Fordyce Contents COPIES IES ise RE ii Table Of MUMS aia EEUU IN T TI iii G tting Started ee aks 1 System requirements see aera a raaa tec ein ee itus te ree eere E Tata dee AE rE ea AAEE sha retelbnstdeetes 1 Installing and uninstalling iacit eric ete tiene cedes zero siete a pese actae em acea eee sd Oa ire pese neget eee 1 Elle imandgement ote metedeutedt o MINA M css tet eee 1 Saving and ree RTT 1 Copying data ard text sereoo cage eiia eerie e wae dus ese tage dudes pesi sae ee equae eai Ros A aeaa aaee asioi EEEn 1 About the BRICK programs et eene tester es evo aae ces Pexterte tue tuiles ee re deoa 2
5. loss was eight percentage points higher in cows in the Northern forest 13 compared to cows in the Southern forest 5 Percentile Demarcation point for a specified percentage of a population e g 75th percentile is the point below which there is 75 of the population 17 Quartile A range within which 25 of animals occur Rate of return on equity Net profit expressed as a percentage of the average of the owner s equity capital used in the business for the period under review usually a year Rate of return on total capital Operating profit expressed as a percentage of the average of the total capital employed for the period under review usually a year Risk analysis An analysis or an assessment of factors that affect or are likely to affect the successful achievement of an intervention s objectives A detailed examination of the potential unwanted and negative consequences to human life health property or the environment posed by interventions a systematic process to provide information regarding such undesirable consequences the process of quantification of the probabilities and expected impacts for identified risks Second lactation cow A cow between confirmed pregnancy and weaning in the year after the majority of her cohort weaned their first calf Southern forest Non downs areas outside the Brigalow country of central and southern Queensland Steer De sexed bull prior to full maturity Supplement Addition to the
6. lower which is equal to the 50th percentile Missing and missingness Animals that fail to return for routine measures but not including irregular absentees It comprises mortalities animals whose individual identity is lost and those that permanently relocate either of their own accord or without being recorded by a manager Mob A synonym for management group in contrast to a herd which is the entire population of animals within a business entity Mortality rate Cattle that have died as a percentage of the number known to be alive at a previous time Net profit This is the reward to the farmers own capital Net profit equals operating profit less the returns to outside capital The returns to lenders of fixed capital interest rent leases are deducted from operating profit in the calculation of net profit It is available to the owner of the business to pay taxes or 16 to provide living expenses consumption or can be used to reduce debt Net profit minus income tax minus personal consumption above operators allowance if it has already been deducted from operating profit equals change in equity Nominal current terms The impact of expected inflation is explicitly reflected in the cash flow projections Northern Australia Queensland the Northern Territory and the Pilbara and Kimberley regions of Western Australia Northern Downs Downs naturally non forested with black soil areas of western Queensland the Barkly Tablela
7. Beef Rough Indicator and Calculator of Key performance indicators BRICK ae ied Queensland FY Government 7 Version 1 00 Queensland Department of Agriculture and Forestry mia Queensland Alliance for Agriculture and Food Innovation Meat amp Livestock Australia MEAT amp LIVESTOCK AUSTRALIA Prototype 2011 2015 Version 1 00 current 2015 This document was prepared by Timothy Moravek of Queensland s Department of Agriculture and Forestry Notice to users This documentation is distributed on the following conditions BY Copyright 9 State of Queensland 2015 The Queensland Government supports and encourages the dissemination and exchange of its information The copyright in this publication is licensed under a Creative Commons Attribution 3 0 Australia CC BY licence Under this licence you are free without having to seek our permission to use this publication in accordance with the licence terms You must keep intact the copyright notice and attribute the State of Queensland as the source of the publication For more information on this licence visit http creativecommons org licenses by 3 0 au deed en The information contained herein is subject to change without notice The Queensland Government shall not be liable for technical or other errors or omissions contained herein The reader user accepts all risks and responsibility for losses damages costs and other consequences
8. Weight Measure of body mass Can be very precise but weight recorded will vary with different weighing protocols especially diet and time since eating and drinking Wet cow Lactating cow or cow suckling a calf 19
9. aae Vene eee aene es patere air e Dea ee EEEn 9 Error messages and AlELtS cceseessssececececeesesenaececeesceesesaaaecececeseeseaeaeeeeeesseuesaeaeeeeeceseeseaeaeeeeseeseesenaees 11 Contactus and feedback otii ete nte eat torem e Reese iere ee aoe e oet eec 11 RECOMMENGE Ha I e le RR 11 ADDSnObD6 tette eRe ERERE eT Tne te E E I cdm peser REL e EL M DILE 12 List of definitions and terminology cccccccccssssssssecececsssesesneseceeecesceseeeseeeeecessesesaeseeeesessseseeaeeeeeens 13 Table of figures Figure 1 Navigating the Worksheet tabs ccccccccsssssssecececessesssececececesseseeaeeeeeeseeesesauaeeesesssessesenaeeeeess 4 Figure 2 The Navigation WOrkSh et ssccccccccsssesssseceeececeesesesaeeeeeeecesseseuaeaeseesceesesauaeeeseesseesessaaeeeeess 4 Figure 3 Example of country type selection sssesesssseseseseeee eene nnn nnns sene titan n nnns 6 Figure 4 Combined business table eene nnne enne nnns nenne tina nns n nena a sanis 6 Figure 5 Mating management input eee eee cesecceceeeeeeeeaaeeeeeeeeeeeeaaaaeeeceeeeeeeeaaaaececeeeeeeeesaaaeeeeeeeeeeeeaaaeees 6 Figure 6 Herd structure input table cccscssccececessessssececeeecessesesaeeeceeecessesaaeeeeeescesseeaaeeeeeesesssessaaees 7 Figure 7 Example of inventory valuation eise nennen nnne nennen snnt n nnns 7 Figure 8 Example of a completed transaction entry table ssesssssesseeeee
10. all variable A fixed cost is everything else except finance and taxation costs CashCow key performance indicators Understanding the key performance indicators is important in the context of understanding the outputs of the BRICK It is recommended to read the CashCow report which can be located at www mla com au Using the BRICK The first two tabs Licence and Notes do not require any input These tabs are informational only Please note that use of the BRICK is governed by the acceptance of the licence agreement Importantly the Notes tab outlines the key to cell colours The colours represent different cell functions They are Green cells require an entry even if it is zero 0 Light red cells are optional and only need input if required Yellow cells are auto calculations and results no data can be entered Blue cells display results Tanned cells display results The BRICK requires four years of financials and five years of livestock inventory movements to provide a complete analysis Using data over this time can assist in removing extreme seasonality effects from the resulting key performance indicators Five years of stock records are required Key performance indicators will be available for any one year after any two consecutive years data is input Navigation Navigation in the BRICK can occur in two ways One is via the inbuilt tabs shown in Figure 1 below The other i
11. ass of cattle description at closing A description of cattle primarily the weight and paddock values are required for this section The purpose of this section is to allow a market valuation of cattle remaining in the inventory on the property at the end of the financial or cattle year It is also important for determining the productivity of the herd in producing kilograms of saleable meat While it may be tempting to enter any individual year s data in it is best to put in average weights and prices incurred over the analysis period These can be estimates but they need to be reasonable The example table shown here has prices and weights completed however these are for illustration only 45 Class of cattle Description at closing Average Average Average 46 weight Value kg Value Head 47 Females Weaners Rising 1 e 1 75 48 Yearlings Rising 2 49 Heifers Rising 3 50 Cows 3 Years 51 Spays 52 Males Weaners Rising 1 53 Yearlings Rising 2 54 Males Rising 3 55 Males 3 Years 56 Bulls 57 58 Figure 7 Example of inventory valuation Cattle transactions and transactions entry This section is where entry of sales transfers and purchases occurs Spayed cattle entry also occurs here in a similar manner to the herd structure table above The purpose of entering this information is to reconcile livestock numbers and determine missingness To complete the table simply fill out each line from left to right recor
12. aving and loading The BRICK uses the default Save and Save As procedures provided by Microsoft Excel Any data entered saves into the file It is therefore recommended that a master copy of the BRICK be stored and each business or enterprise uses a copy of the Master file This can be achieved by copy and pasting a copy of the master file using Windows Explorer or using the Save As function in Microsoft Excel to create a new version of BRICK Copying data and text No formal procedure exists to copy and paste texts between BRICK excel files A normal copy and paste to relevant cells will work in the majority of cases About the BRICK program The BRICK spreadsheet consists of nine spreadsheet tabs They are licence notes data entry calculators livestock trading calculations summary calculations summary of results and key performance indicators One of the tabs is hidden lookups The lookups tab contains information required for the program to run that is not relevant to the user A summary of the components The following summarises the use and importance of each tab e The Licence tab outlines the licence agreement for users of the product e The Notes tab is a collection of handy tips and hints regarding the use of the spreadsheet e The Data entry tab is where all data entry is ultimately done including business livestock inventory and trading country type etc e The Lookups Hidden tab contains information relevant for the p
13. d The loading usually covers the extra load of pregnancy and lactation In some models it will also cover the pasture consumed by the calf itself up to age five months at which point the weaner can be rated in its own right In the BRICK the lactation allowance covers the weaner until six months of time Adult equivalents are calculated for a PERIOD of time not for a point in time Except for weaners and sale cattle this will be 12 months e g from age 12 months to 24 months The weaner group will usually be rated up until weaning for keepers and more or less for those sold One adult equivalent can be thought of as the amount of feed consumed in 12 months by a non lactating animal of average weight 450 kg Therefore if average feed consumption is 2 2 of bodyweight this would be equivalent to approximately 3650 kg dry matter per year for one AE Cattle supplemented with phosphorus or urea will eat more than un supplemented cattle of the same bodyweight For full year supplementation feed intake could be 20 higher than for un supplemented cattle When comparing herds with and without supplementation reduce the total AE of the supplemented herd to ensure a fair comparison 17 reduction will equate to 20 extra feed consumption applying pro rata reduction for part year supplementation Annual liveweight production Annual net liveweight production per retained cow equals average liveweight of cows at the end of the measured period multiplie
14. d by 1 mortality rate plus average weight of weaners produced multiplied by lactation rate minus average cow liveweight at the start of the measurement period Average Total divided by the number of observations This may be similar or very different to the median 13 Benefit cost analysis BCA A conceptual framework that can be applied to the economic evaluation of projects and programs in the public sector It differs from a private financial appraisal sometimes termed investment analysis in that it considers all gains benefits and all losses costs regardless of to whom they accrue Benefit cost ratio B C ratio The ratio of the present value of investment benefits to the present value of investment costs A value greater than 1 suggests a profitable investment Body condition score Subjective assessment of the body tissue fat and muscle reserves of an animal Five point scale 1 poor 2 backward 3 moderate 4 forward good 5 fat Branding rate Defined as calves branded as a percentage of cows mated the previous year It is very similar to weaning rate but does not include calf mortality between branding and weaning Breeder Synonym for a cow in a breeding herd Bulls Entire male cattle Bullock Steer after it reaches mature height and weight Calf output Number of calves produced Cattle year Twelve month period ending at a natural point in livestock transactions and handling usually after the la
15. ding each individual transaction details Data Entry Return to Navigation Page 30 06 2013 30 06 2012 30 06 2011 30 06 2010 30 06 2009 Sales amp Purchases Entry Date Buy Sell Number Av live Wt Total value Av Value Head 1 Rem sum 7 2 450 3 E 550 45760 4 Male 580 5 Sel Mae buts 8 650 6 8 Sell Female ears 212 450 114 9 Sel Female Spays 92 sso sese 10 Sel Mae 3 Years 381 58 s309372 wo anii Se Male Bus 9 65 sse Limes p e c e en n Recte mens M o Jand2 Sel Female _3Years 15 Jani2 Sel Femae Spays 98 sso 870 070 Jan12 Sel Mae 3 Years 402 5890 3265424 18 19 Sell Female 3 200 420 20 Jan13 Sel Female 3Yeas 80 45 zi Jan3 Sel Femae pay 22 Jan13 Sel Mae 3Yeas 562 sso 23 Jan13 Sel Mae 24 Jan 3 Sel Female Rising 25 Jan 3 Sel Female Calves 26 Jan13 Sel Male Cawes amp Weaner 250 180 27 Jan 13 i 28 Jan 13 Sell Male 250 450 29 30 Jul 09 Buy Female 3 Years 105 450 So Jm B Female 3Yeas 12 45 Figure 8 E
16. e yellow cells Figures to go into the table can be sourced from statement of accounts or an accounting package such as MYOB or similar The numbers entered here will not affect the data entry page or the resulting key performance indicator calculations Therefore if using these calculators enter the amount shown in the yellow cells into the relevant cell on the data entry page A B c D E F G 1 Calculators Return to Navigation Page 2 3 4 30 06 2013 30 06 2012 30 06 2011 30 06 2010 5 Variable costs calulator If required EE Zz 0 00 sooo 50 00 6 Animal health Vaccines i Medications 8 Veterinary fees 9 Other 10 Contract services Mustering 11 Between station c Transport 12 Agistment paid 13 Selling costs Transport 14 Levies 35 Yard dues 16 Commissions 17 Other 18 Cattle feed Hay 19 Supplements 20 Other 21 Associated freight 22 23 Calculator for adjusted overheads 24 Total overheads 25 Interest 26 Family drawings 27 Labour 28 Depreciation 29 30 31 Adjusting variable costs for a single property within a multi property beef business 32 0 00 0 00 0 00 33 All places AE cattle 34 AE cattle for one place 35 All places Variable costs 36 27 Figure 10 Calculator tab Livestock trading calculations summary calculations and summary of results These three tabs di
17. educted in the calculation of operating profit The returns to lenders of fixed capital interest rent lease payments are deducted in the calculation of net profit 15 Gross margin A gross margin is the gross income from an enterprise less the variable costs incurred in achieving it It excludes fixed or overhead costs Growth rate Change in weight divided by the time period Head of Colloquial term for number of cattle Almost always can be excluded without loss of meaning Heifers Young cohort of female cattle up to the time the majority should have calved after which the cohort is classed as first lactation cows Key performance indicators KPIs Tracking indicators used to measure the achievement of outputs against targets Lactation rate Cows weaning a calf as a percentage of closing numbers number of cattle at the end of the cattle year within a group Live stock unit LSU see adult equivalent Liveweight production ratio Annual net liveweight production divided by the average liveweight of cattle in the paddock over a cattle year The latter represents feed intake and equals average cow liveweight over the year plus average weight due to weaners over the year For example a liveweight production ratio of 0 45 equates to 45 kg net increase in liveweight for every 100 kg of cattle grazing that paddock on average over a one year period Mean Synonym for average Median Point where half the population is higher and half is
18. eneeenennns 8 Figure 9 Example of a summarised table of average sale weights 8 Figure 10 Calculator tab rae tea edere seen ke cg cds d vae p deduce Porno e dc dene ces 9 Figure 11 Check Deaths section CLrrOr ccsessccccececessesssaececececeescaeaeceeecesseseuaeaeeeeecesseuaeaeeeessessesenaees 11 Figure 13 Map of CashCow productivity regions ccccccccccsssssssssecececesseseceseceescsssesnaeeeeeeseessesneaeees 12 Getting started The BRICK is a business analysis spreadsheet that aims to assess the productivity and profitability of extensive grazing enterprises This document will assist in navigating and using the spreadsheet however for interpretation of results and key performance indicators please see recommended reading for links to CashCow final reports System requirements e Microsoft Excel 2010 and later May work on Excel 2007 but is untested Installing and uninstalling The BRICK is downloadable from the FutureBeef website at www futurebeef com Since the BRICK is an excel spreadsheet it does not require installation Uninstalling is not required To remove the BRICK from your system simply delete the excel file However this will cause data loss of any data contained in the file File management The BRICK is downloaded as a single excel formatted file It is suggested that a master file be kept see saving and loading below However a fresh copy can be downloaded from the above mentioned address S
19. er mixed enterprise the spreadsheet uses pro rata calculations to determine the contribution of beef to the overall business The majority of this information can be sourced through taxation returns statement of accounts or other accounting packages such as MYOB or similar An extra allowance is made through the BRICK process to capture unpaid labour For the first family for which drawings are made the BRICK adds 60 000 per annum to the operational costs For each subsequent family drawing 45 000 is added An example of a finished entry is below Finally in the calculators tab see calculators in this manual for more information there are different input tables to assist in determining variable costs and apportioning overhead costs as well as depreciation 1 224 434 1 086 697 554 024 958 128 Combined business Total business income Total business costs See note to right 545 223 422 450 409 348 398 344 Labour costs wages super stores 133936 151 794 149 528 141 696 Number of families drawing not wages EE ul Eee Beef business variable costs 6 559 19 097 22 327 29 280 Figure 4 Combined business table Herd structure and mating age When assessing the performance of the business and herd it is important to make sure that at the very least herd numbers are recorded in a meaningful useful way At the very minimum some of the key outputs of the data are to prov
20. ide information on things like replacement heifers weaning and branding rates and leads and tails This requires a breakdown of the herd structure into the first three years of female and male cattle to assess this information Select what age replacement heifers are joined with bulls in D38 Mating management Age at first mating 2 Enter 1 if mate yearlings i e 6 months after weaning High production regions Enter 2 if mate 18 months after weaning Much of north Australia Enter 3 if mate or most heifers conceive for the first time 2 5 years after weaning Lowest production regions Figure 5 Mating management input The term rising 1 year of age is to capture cattle in that class up to 12 months of age rising 2 is up to 24 months and so forth Filling out this table will require a herd recording system that facilitates counting cattle by weight and age classes 17 Herd structure 30 06 2013 30 06 2012 30 06 2011 30 06 2010 30 06 2009 18 All 48 30 5100 480 tc 19 480 so 5100 480 4 amp 0 20 Assume 50 50 split unless actual numbers known 21 22 Closing numbers Use a date after the last annual weaning round 23 Females Weaners Rising 1 24 Yearlings Rising 2 25 Heifers Rising 3 26 Cows 3 Years 27 Spays 28 Males Weaners Rising 1 29 Yearlings Rising 2 30 Males Rising 3 31 Males 3 Years 32 Bulls 33 Total 34 Figure 6 Herd structure input table Cl
21. ill B Copy H Paste wa a om EE alm amp Center gt 9 33 398 Conditional Format Cell Insert Delete Format Sort amp Find amp J Format Painter i uw Hi d0 A WEE SE SF mergea Center h 00 D Formatting as Table Styes d4QCea Fiter Select Clipboard A Font d Alignment j Number A Styles Cells Editing Ae Ge s im Al vO fe Data Entry f a d B c D E E G H 1 J Data Eni Return to Navigation Page 2 3 4 5 ES 6 Closing date DD MM YY Can be financial year or cattle year 7 8 Region 10 Combined business 11 Total business income 12 Total business costs See note to right 13 Labour costs wages super stores 14 Number of families drawing not wages 15 Beef business variable costs 16 17 Herd structure 18 Branding Females 19 Branding Males Less interest drawings labour Plus depreciation Calculator on separator spreadsheet if required 20 Assume 50 50 split unless actual numbers known 21 22 Female weaners at weaning 23 Male weaners at weaning 24 25 26 Closing numbers Use a date after the last annual weaning round 27 Females Weaners Rising 1 28 Yearlings Rising 2 29 Heifers Rising 3 30 Cows 3 Years 31 Spays 32 Males Weaners Rising 1 33 Yearlings Rising 2 34 Males Rising 3 35 Males 3 Years 36 Bulls 37 T
22. l balance can be achieved over the longer term Within a business context economic sustainability involves using the capital of the company efficiently to allow it to continue functioning over time Enterprise Enterprise denotes the production of a particular commodity or group of related commodities for direct sale thus by wheat enterprise we imply the production and sale of a wheat crop but do not specify the method of production Enterprise or activity gross margin The gross margin of an enterprise or activity is its gross income minus its variable costs Enterprise or activity variable costs Costs directly attributable to an enterprise or activity and which vary in direct proportion to the scale of the enterprise or activity First lactation cow Cow during the period when the majority of her cohort is experiencing their first lactation Fixed or overhead costs Defined as costs which are not affected by the scale of the activities in the farm business They must be met in the operation of the farm Examples include wages and employee on costs repairs insurance shire rates and land taxes depreciation of plant and improvements consultants fees and the operators allowance for labour and management Some fixed costs like depreciation or operator s allowance are not cash costs It is usual to count the smaller amounts of interest on a typical overdraft or short term working capital as an operating expense fixed cost and d
23. nd and the Kimberley Northern forest Non downs areas north of a line from approximately Bowen to Karratha Opening numbers Same as closing numbers from the previous year Operating margin The return per kilogram of liveweight sold minus the cost of producing a kilogram of liveweight expressed as dollars per kilogram S kg Operating profit This is the return to total capital invested after the variable and overhead fixed costs involved in earning the revenue have been deducted Operating profit represents the reward to all of the owners of the capital tied up in the business Operating profit equals total receipts minus variable costs equals total gross margin minus overheads When operating profit is expressed as a percentage return to total capital it indicates the efficiency of the use of all of the capital invested in the farm business Opportunity cost The benefit foregone by using a scarce resource for one purpose instead of its next best alternative use Other farm income Income earned by the farm business but not attributable to a particular enterprise such as income from contract work Overhead or fixed costs see Fixed costs Pasture yield Standing dry matter per hectare of a pasture Percentage points When comparing the difference s between percentages for each measure of performance the absolute difference will be expressed in terms of percentage points increase or decrease For example the median percentage foetal calf
24. ole organisation and individual parts of the organisation To achieve this for beef enterprises the BRICK uses market valuations for inventory as opposed to taxation values which are then used for calculating key financial performance indicators such as gross margin operating margin cost of production and return on cattle capital for any or all of the entire herd adult equivalent or per kilogram metric Adult equivalents Another key concept underpinning BRICK calculations is that of adult equivalents The calculation of the total adult equivalents for each herd indicates the relative grazing pressure exerted by the herd An immediate problem encountered in beef herds is that not all cattle are the same size and do not eat the same amount of feed e g weaners eat less than bullocks Likewise a herd of 2000 cattle comprising breeders turning off weaners will most likely not eat the same amount as a herd of 2000 comprising fewer cows but turning off older steers To ensure that herds are compared equally based on consuming the same amount of feed feed requirements are estimated for each class of cattle relative to an adult equivalent For the BRICK program an adult equivalent is a non pregnant non lactating beast of an average weight of 450 kg Fixed and variable costs A variable cost is an input cost that increases for each unit of output For beef enterprises costs like vaccinations supplementary feeding tags dips and drenches are
25. otal E M 4 gt M Licence Notes Navigation Data Entry lt Calculators Livestock Trading Calculations Summary Calculations y Ready OB 100 2 0 5 Figure 2 The Navigation worksheet Data entry can be in any order however it is easy to begin at the top and work through to the end Year entry The first data entry cell is located in cell B6 and is used to specify the year of analysis Updating this cell will also update other relevant dates within the spreadsheet Entry should be in DD MM YY Closing date DD MM YY 30 06 2013 Region There are four selectable regions that represent broad productivity regions that align to productivity indicators from the CashCow project to select from Select using the drop down box in cell B8 Figure 3 To assist in selection refer to the map in the appendix of this document The map is also in the key performance indicator tab within the BRICK spreadsheet and is a general guide to productivity but each property should determine best which productivity zone they are located 8 Region Northern Forest 9 Southern Forest Northern Forest 10 Combined business Northern Downs 11 Total business income Central Forest Figure 3 Example of country type selection The combined business The business table which is the first data entry using enterprise data follows setting up the years For enterprises that are mixed beef sheep beef cropping or any oth
26. resulting directly or indirectly from using this information Your use of the BRICK Software and this manual are subject to the Software Licence available within the spreadsheet This manual was last updated September 2015 Acknowledgements The beef industry is plagued with ambiguous language When we ask about cow herd performance most gleefully respond with talk about weaning rates mortality rates and the like But how do they get these figures And where is the evidence that they are indicative of business performance During the recently completed MLA funded CashCow project managed by the University of Queensland it was realised that for producers to use the recommendations from the project they would have to know that they needed them In other words before setting about to improve some aspect of a beef business a clear understanding is required of the business situation to then drive economic analyses of where the real opportunities are The big breakthroughs are always made by asking the right question The right questions include the likes of What is the annual liveweight production per cow Liveweight production is a direct indicator of income But who measures it It s dead easy to measure in steers but in cows The good news is the BRICK can answer these questions using the absolute minimum amount of information a standard livestock schedule and transaction records combined with summary financial data The BRICK
27. rogram to run This tab is hidden as it provides no extra information and is only used for reference points e The Calculators tab assists in the calculation of variable costs adjusted overheads if required and pro rata calculations of multi property businesses e The Livestock trading calculations tab shows the reconciliation of livestock trading schedule and market valuations used for opening and closing inventory All formulas are shown e The Summary calculations tab shows the results and formulas of key performance indicators All formulas are shown e The Summary of results tab shows a few key performance indicators averaged over five years from the summary calculations tab No formulas are shown but can be seen in the summary calculations tab This tab is useful as a quick reference tab e The Key performance indicator tab uses graphical displays each year of key performance indicators against regional indicators Concepts underpinning the BRICK This section will outline some of the important technical information underpinning the calculations and results BRICK uses and produces Management accounting The BRICK uses the concept of management accounting A simple definition for management accounting is that managers can use the information in order to make better management decisions about their business It also allows managers an intricate view of the internal structures of their enterprise to understand the performance of both the wh
28. rrors and alerts are not intended and the authors would be greatly appreciative of any feedback Contact us and feedback Please address any feedback or questions by emailing timothy moravek daf qld gov au or calling 13 25 23 Recommended reading McGowan M et al 2014 Northern Australian beef fertility project CashCow Sydney Meat amp Livestock Australia Available from www mla com au 11 Appendix Northern forest Northern downs Central forest Southern forest Figure 12 Map of CashCow productivity regions 12 List of definitions and terminology Some of this list of definitions and terminology are adapted from McGowan et al 2014 and Chudleigh 2015 Adult equivalent AE Cattle of different ages and body weight have different requirements for feed In determining the composition and grazing pressure of a herd it is necessary to work on a common animal unit In this analysis an AE is defined as a 450 kg dry animal Note Adult equivalents for dry cattle are based on relativity to a standard weight of beast carried for 12 months AEs for breeders are based on weight plus a loading for breeders that have or wean a calf This loading represents the extra nutritional requirement of a cow that rears a calf relative to a dry cow The loading for rearing a calf can be between 20 and 35 of the loading given to the breeder depending upon the modelling process used and the age to which the cow calf unit is being assesse
29. s via clickable links within the Navigation worksheet Figure 2 Furthermore there is a blue link button labelled Return to Navigation Page at the top of each worksheet Clicking this will return the user to the navigation sheet KK gt M Licence Notes lt Navigation Data Entry lt Calculators Livestock Trading Calculations Summary Calculations 4 Ready FJ Figure 1 Navigating the Worksheet tabs s ney z EEEN ge x sim m R gt Uta Paste gt s u oe tieboar 3 Font aiio Number Stic 77 Al te a E 5 5 c r E n F x n m 2 3 rA Data Entry Summary Calculations 5 6 z Calculators Summary Results 5 10 5 Livestock Trading Benchmarks 13 1a as 16 17 is 29 20 21 22 23 24 25 zo 27 28 29 30 31 12 33 34 35 36 Rg Licence Notes Navigation Data Inty Calculators Livestock Trading Calculations Sunenary Calculations 1E Figure 2 The Navigation worksheet Data entry The data entry sheet is where all the data entry occurs While it may be tempting to flick between sheets and look at results mid way through there is very little purpose navigating off the data entry sheet until it is complete Upon opening the data entry sheet your screen will have the following appearance Home Insert Page Layout Formulas R Developer ts te ta fa fe tw t amp all Calibri Im A x A Ef weapTet General E f i cim oe ERE usps M zu d E F
30. splay each key performance indicators and other derivative calculations used in results This provides a means of transparency and each formula used is displayed openly to the right of the respective key performance indicator Interpretation of the key performance indicators are not provided in this document and users should refer to recommended reading or contact their business advisors or extension officers Key performance indicators The key performance indicators worksheet places the results from three key performance indicators against industry indicators obtained from the CashCow project The program will automatically place the results against the region selected from the data entry region input Each region is represented by a single bar consisting of a light and dark grey area The Upper limit which is the top of the bar represents the figure at which the top 25 of producers were performing at throughout the CashCow project The bottom of the dark grey area which is also the bottom of the bar represents the performance of the lowers 25 of properties represented in the CashCow project Weaner Production Liveweight production Female 300 300 250 250 Upper Upper 200 200 Lower i Lower L AVERAGE e AVERAGE 1 5o uU 2013 x 92013 J 92012 8 92012 100 100 I 92011 92011 2010 2010 50 50 o e o Southem Forest Central Forest Northern Downs Northern
31. st weaning muster in north Australian beef business Central forest Forested areas associated with the Brigalow areas of central Queensland Closing numbers Number of cattle at the end of the cattle year Cows Female cattle after first mating whether non pregnant or from mid pregnancy Depreciation as applied in estimating operating profit It is a form of overhead cost that allows for the use or fall in value of assets that have a life of more than one production period It is an allowance that is deducted from gross revenue each year so that all of the costs of producing an output in that year are set against all of the revenues produced in that year Depreciation of assets is estimated by valuing them at either current market value or expected 14 replacement value identifying their salvage value in constant dollar terms and then dividing by the number of years until replacement Formula used in this analysis is replacement cost minus salvage value divided by the number of years until replacement Dry cow Non lactating cow i e cow not suckling a calf Dry matter intake Dry matter eaten daily by an animal usually expressed as a percentage of liveweight and typically between 1 5 very poor diets and 2 5 feedlot diets Economics Assessing the relative merits of business choices for the future Economically sustainable The use of various strategies for employing existing resources optimally so that a responsible and beneficia
32. xample of a completed transaction entry table As can be seen from the example table above information required includes date of transaction type of transaction buy sell gender of cattle sold purchases and age of cattle These cells have drop down menus to select the correct measure The number of cattle sold their average liveweight carcase weight will need to be converted to an average liveweight and total value of sale or purchase After this table is complete so is all the data entry Entry should be checked for accuracy against financial statements if applicable by comparing to the summarised tables to the right of the transaction history table starting in cell M59 An example is below 30 06 2013 30 06 2012 30 06 2011 30 06 2010 Transactions Sale numbers Match any sales with weights and receipts below Females Weaners Rising 1 Yearlings Rising 2 Heifers Rising 3 Cows 3 Years Spays Males Weaners Rising 1 Yearlings Rising 2 Males Rising 3 Males 3 Years Bulls Figure 9 Example of a summarised table of average sale weights Calculators The calculators tab assists in calculating subtotals for variable costs and adjusting fixed accounts when more than one enterprise for example sheep and beef is reporting under one business entity It can also be of assistance in determining which account is and is not a variable cost account Numbers are entered into the tan cells and the total of the accounts display in th
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