Indeed the timetable of events imposed under the recent 'self-assessment' procedures means that this information is more 'current' and therefore more valuable in this respect. Comparison between years is a useful exercise. A significant reduction in sales due to lower prices for milk, beef, cull livestock, etc. will be obvious. This should not be the main focus of attention however, as much of the decrease in output will be due to factors beyond a farmer's control. Greater attention should be focused on the costs of production such as upkeep and running costs of machinery, purchased feeds, heat and power.
Farmers can exercise a degree of control on the various costs of production.
If dairying is the major enterprise in the business then it is possible to analyse in greater detail. Make allowance for the costs associated with the other enterprises and deduct them from the accounts. The resultant account can then be expressed on a per litre basis by dividing each item by the total litres of milk sold in the year. This is a useful format for comparison year on year and bench-marking with other dairy farms and published targets. Take time to analyse these closely as they are a valuable source of information, and will provide useful performance indicators for planning and decision making.