All things Dairy

andrew830

Member
High Profit is very much in the eye of the beholder. A consistent 10% return on capital employed would be the envy of many businessmen. It might not mean a six figure profit depending on the scale of the business

When people say capital employed what do they mean?Is it everything including land and houses?
 

Durry cows

Member
Location
Derbyshire
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after some investigation it would seem the massive 1000 cow dairy units are not all as they seem, a large one in the south west of Scotland which I was previously very impressed with in the speed and scale at which it went from 650 cows to 2000 is now said to have outside investors putting millions into the business, things didn't quite add up previously milk was good but not that good surely, this has cleared up the issue
 

Bipper

Member
I suppose if you double in size then lose say 25% you are still ahead of where you started?

Investor money is no different from investing your own money or borrowing, there needs to be a return. If anything it shows confidence in the business of outsiders are willing to invest. Or they are giving someone an opportunity to build up their capital within the business?

Without knowing details you can't make a judgement.
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 105 40.5%
  • Up to 25%

    Votes: 94 36.3%
  • 25-50%

    Votes: 39 15.1%
  • 50-75%

    Votes: 5 1.9%
  • 75-100%

    Votes: 3 1.2%
  • 100% I’ve had enough of farming!

    Votes: 13 5.0%

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