Gearing up for the 2018 Cotton Analysis
27 June 2018
Each year Boyce Chartered Accountants teams up with the Cotton Research and Development Corporation (CRDC) to analyse the performance of the top farms in the industry, giving the farmers who are involved invaluable business information.
Called Australian Cotton Comparative Analysis, Boyce has produced the report since 1986, and 14 years ago, the value of this work was recognised when CRDC partnered with the company. The study is regarded by the cotton industry as the benchmark for the economics of cotton growing in Australia.
Tim Grellman, General Manager of Rimanui Farms Ltd in Moree, said the company used the information it received from participating each year to assist in its business decisions.
“We can see how our operations performed and analyse profit against the top 20 percent of the industry,” he said. “This is critical in how we allocate capital."
“I recommend the Australian Cotton Comparative Analysis to all growers who are interested in a deeper understanding around the financial consequences of what happens in the paddock.
“Simply being involved in the benchmarking process facilitates robust discussion at board meetings and with other growers. We’ve been involved since 1995.”
The aim of the study is to collect and critically analyse data that will assist the industry to grow and develop sustainably through a focus on best practice techniques.
For instance, the 2017 report reveals that the average group achieved a profit per hectare of $1,557, being slightly lower than $1,706 in 2016, however greater than the five year average of $1,257.
Farms which are interested in participating in the 2018 study should contact Paul Fisher at Boyce Moree or Linda Mackellar at Boyce Wagga Wagga.