Profit Monitor
The purpose of a profit monitor is to enable a farmer to do more in depth analysis of the financial performance of his farm. In addition, it is possible to compare his profit monitor output data with other farmers who are highly efficient, thus allowing the farmer to identify areas where cost savings may be made in order to be more profitable.
The Teagasc Cost Control Planner Program, can produce an end of year “Dairy Profit Monitor Report” which is used to input data into the Dairy Profit Monitor (DPM) program. If necessary the figures on this report can be amended before inputting into the DPM program.
The purpose of the profit monitor is to make a farmer aware as to how his farming business is performing. It can be used to determine the profit being made and the profit levels can then be calculated in different ways such as per hectare, per litre of milk or per cow.
These results can then be compared to:
• Previous years for the same farm
• Other farms in local discussion groups
• Monitor farm figures
• National figures
• Teagasc targets
It can also show which enterprises are performing well and which are not.
A profit monitor is a useful aid when drawing up a Farm Plan as it shows the current performance and can be used to help calculate the desired performance.
To enable Effective Goal Setting, it is vital to have accurate profit levels in order to calculate realistic goals which can easily be measured.
The Profit Monitor clearly shows the Common Costs, Fixed Costs and Variable Costs incurred by the farm during the previous year.
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