Break even milk price exclude bank transfers and drawings
H
Helen Blom
Can the bank transfers and drawings get excluded from break-even milk price please? Including them does not make sense and makes comparing between farms totally inaccurate.
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K
Katrina Geddes
Break Even 'optional' to sit at Operating Expenses only not including Below the line is more suitable for Partnerships and Sole traders (Balance sheet items such as Capital and Current account drawings etc) as well as for company structures wanting to get an picture of actual operating break even before capital spend
Farm focus
Hi Helen, thank you for your feedback. The reason these items are included is to portray the full expenses associated with a particular dairy business. Many businesses use bank transfers to pay their personal entities a wage, or drawings, and some pay themselves wages with the PAYE within the business. In these circumstances, when standardised with other businesses, these items are all wages. We have had other feedback about this and have lodged a request for the inclusion of these items to be optional.