Centre of Excellence in Farm Business Management
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Item The usefulness and efficacy of linear programming models as farm management tools(Centre of Excellence in Farm Business Management, 2013-07) Hurley, E.; Trafford, Guy M.; Dooley, E.; Anderson, W.This study evaluated the usefulness and efficacy of linear programming (LP) models, and the Grazing Systems Ltd (GSL) model in particular. The GSL model was selected because it is the only LP model available for use in the farm business environment in New Zealand. Two approaches were used to evaluate the usefulness and efficacy of LP models and the GSL model as farm management tools. •The first approach involved case studies with two farm consultants experienced in the use of farm management models who worked with dairy farmer clients using the GSL model. The case studies resulted in an evaluation of both LP and the GSL model. •The second approach was an expert evaluation of the GSL model conducted by members of a research panel with LP experience who evaluated the GSL model against a set of LP modelling criteria they developed. The study concluded that LP can provide information to assist with improving farming systems, but the LP model has to be carefully constructed and interpreted so that model users will have confidence in the answers it provides. Users who are familiar with the concepts of marginal analysis will find that LP can provide valuable information to help with improving farm systems. However, consultants and panel members made a number of suggestions that would help to improve the “commerciality” of the model, such as an improved manual and formal training, better input and output functionality and better model availability. Potential users expect to be able to easily find information on the model from a range of sources, yet little information is available. If the GSL model is to be more widely used and accepted as another tool in the farm management kitbag, it would be helpful to improve its accessibility, data input and in particular, data output.Item How dairy consultants help farmers design improved farming systems: The diagnosis and solving of low profitability problems by an expert dairy consultant(Centre of Excellence in Farm Business Management, 2016-04) Gray, D. I.; Kemp, E.; Wood, B.; Westbrooke, VictoriaDairyNZ have developed a training programme to improve the capability of novice consultants and this is being tested across seven consultancy firms. One important source of knowledge that would be useful for this training programme,is the knowledge held by experienced farm management consultants. New Zealand has a pool of very experienced farm management consultants with expertise in farm management consultancy. If this pool of expertise could be captured, it could then be passed on to novice farm management consultants to greatly enhance their capability. However, little research has been undertaken on the practices of New Zealand farm management consultants to date. In 2014, a pilot study was initiated to investigate how an “expert” dairy consultant helped a new client design an improved farming system. The pilot study obtained an overview of the problem solving process used by the expert consultant to help design an improved farming system for a new client, but limited detail into how the consultant diagnosed and developed solutions for specific problems such as low levels of profitability or low levels of milk solids production. This study seeks to extend the work undertaken during the pilot study to provide an in-depth understanding of the specific problem solving processes an expert consultant uses to diagnose and develop solutions for a new client whose farm business is achieving low levels of profitability. The primary aim of the consultant was to help his clients better meet their goals. As such, he operates as a change agent where he tries to facilitate change in his clients’ attitudes, social norms, knowledge, skills and behaviour. Where possible, the consultant adopts a participatory approach to problem solving with the client to ensure problem ownership. He likes clients to actively participate in the process as long as they do him the courtesy of listening to his advice. He is prepared to take the character and goals of clients into account to some extent when responding to clients, but does not change his basic modus operandi. The results from this study highlight that a good consultant needs to be independent and objective with good people skills. They also need to think systemically, be open to new ideas, adaptable, experienced, knowledgeable, analytical, logical and goal-focused.Item How dairy consultants help farmers design improved farming systems?(Centre of Excellence in Farm Business Management, 2014-09) Gray, D.; Kemp, E.; Reid, J.; Westbrooke, VictoriaThere is concern in the farm management consultancy field about the aging population of consultants and the lack of succession planning. One of the factors constraining the employment of new consultants is the time and cost required to train new consultants. To help overcome this problem, DairyNZ have developed a training programme for new consultants based around the whole farm assessment process they use with their Consulting Officers. The aim of the programme is to improve the capability of novice consultants such that they become proficient more quickly and as such reduce the high training cost of new recruits. One important source of knowledge that would be useful for this training programme, is the knowledge held by experienced farm management consultants. However, little research has been undertaken on the practices of New Zealand farm management consultants to date. This study will initiate a programme of research into the practices of “expert” farm management consultants that will provide material for the further development and refinement of the DairyNZ programme.Item How novice dairy consultants help farmers design improved farming systems(Centre of Excellence in Farm Business Management, 2017-11) Westbrooke, Victoria; Gray, D.; Kemp, E.Developing a new farm consultant from the start of their career through to an expert takes considerable time, money and resources. To make the process more efficient DairyNZ has developed a training program for new consultants that includes formal training and the whole farm assessment process. The development of new farm consultants could also be assisted by understanding the knowledge and skills held by expert and novice consultants. The knowledge and skills held by an expert consultant is reported by Gray, Kemp, Reid, and Westbrooke (2014), this study reports the findings for a novice consultant. The objective of both this and the study of the expert or experienced consultant was to investigate the problem solving processes they used in farm management consultancy. A single case-study approach was used, where the novice consultant (NC) was interviewed three times, using a semi-structured protocol. The data was analysed using a qualitative data analysis technique. Once analysed the results were compared to both the literature and the experienced consultant (EC) reported by Gray et al. (2014). The NC reported that good interpersonal skills are important in the consultancy process. The NC built positive social capital, or a positive reputation within the consultancy firm for whom he worked and with farmers and agribusiness professionals. This positive social capital was critical for the NC to build a client base. The NC, like the EC preferred to undertake the role of coach or facilitator during a consultancy visit, however he could undertake other roles as necessary. The NC emphasised the importance of build rapport with a farmer, both to retain them as a client, and to gain information, often sensitive, important for problem identification and solution. The NC utilised a range of different approaches to build rapport with a client. The level of rapport that the NC has built with the client will influence the follow-up of the plan and future visits with the client. With regards to the physical consultancy process, the NC uses the initial phone contact with the farmer to indicate the general issue to be discussed on farm. Unless the issue is financial, he does minimal pre-visit preparation. The NC prefers to start the farm inspection as soon as possible in the visit, as this is where he finds clients are most comfortable. Like the EC, the NC gained information during the visit via observation, questioning and reading documents. Validation of this information and looking for issues ‘not mentioned’ was considered critical for the consultant to build a correct picture of the farming situation. In agreement with the literature and the EC, the NC also used benchmarking, classification and comparison although some of these processes were intuitive and subconscious and thus difficult for the NC to articulate. In contrast, the EC had greater self-awareness of the processes he used. The focus of a farmer’s conversation, their ability to provide data and information along with benchmarking assisted the NC to identify problem areas. There was also an emphasis on separating different levels of on farm issues, the symptoms from the underlying causes, and issues noted initially by the farmer compared to the ‘real’ issue that they wanted to address. Scenario analysis, ‘working back from an end point’ and ‘drilling down to an issue’ were used to both identify the problem and develop solutions. The NC included the farmer in solution development to include their, the problem owners, key knowledge of the issue and business. Follow-up, reports and future visits, were based on the farmers situation and preferences. The NC stated that there has been an increased desire amongst farmers for written farm reports. In terms of training farm consultants, prospective consultants need to be enthusiastic and able to make clients feel optimistic and have good interpersonal skills. An understanding of soft skills, such as rapport building and decision making processes could also assist prospective farm consultants. In agreement with the literature, building contextual knowledge of the area in which they wish to become an expert is critical. This comprises developing knowledge of a range of farming systems in a range of environments and in a range of situations. It was suggested that this could continue post-University prior to starting as a farm consultant. The knowledge and skills needed to become a successful farm consultant can be built by observation, practice and evaluation, as also suggested in the literature. This could be done in a gradual way, starting with small and relatively simple work and moving to working with more complex issues and systems. In this way it allows the new farm consultant to build the all-important positive reputation within a consultancy firm, with agribusiness professionals and farmers. This reputation is critical for the new consultant in terms of developing a client base.Item Future farm management options for smaller dairy farms(Centre of Excellence in Farm Business Management, 2013-11) Westbrooke, VictoriaIn the last thirty years the size of the average New Zealand dairy herd has almost tripled (Dairy Statistics, 2013). Despite this growth, 36% of herds are considered small with less than 250 cows. It is important to develop an understanding of the goals, future business and farm management strategies of owners of small farms. In the Waikato region of New Zealand owners of small farms (n=13), were interviewed using a semi structured qualitative approach. The main research questions and scope for this project were: 1.1 To develop an understanding of the goals and objectives of small to medium sized dairy farms in New Zealand, 1.2 To describe the strategies that farmers plan to use to achieve their goals, and why farmers selected their particular strategies, 1.3 Within the strategy identified by individual farmers, where relevant, identify the particular farming system that the farmer wishes to use to achieve their strategy and to explore why the farmer believes that farming system is the optimum for their strategy. The farmers’ two key goals were flexibility and time for non-farming activities, and sufficient funds for the family and business. The business strategy was to generate a strong annual cash surplus and reduce debt to a low level by retirement. Then funds previously used to repay debt could be used to employ staff to milk the cows. Farmers’ future preferred farming system was one which could be managed by the family and a maximum of one staff member. Farmers didn’t specify a farming system, but were balancing workload, capital requirement and production/profit when considering any changes to their current farming system. The key lessons were that farm owners with small herds have objectives centred on time and sufficient cash for the family. They follow a business strategy that focuses on generating a strong cash-flow and debt management or minimisation and prefer a system that can be comfortably managed by a family and a maximum of one employee. The workload, capital cost and production/profit were all important factors when farmers were considering their future farm management system. This information will allow extension programs and commercial products and services to be tailored to the needs of owners of small herds.