Richard & Victoria Moffatt
DO know how much it actually costs to own your livestock?
A Central Queensland couple has found that the ability to calculate and know this figure for their cattle business has helped
Richard and Victoria Moffatt, “Muldoon”, Marlborough, say they experienced a paradigm shift after attending a two-day KLR Marketing School at Emerald in
“When you do an educational course, you often come away wondering how you’re meant to use what you've
“We could see straight away how we could use our Cost of Production in a trading or breeding environment to maximise the profit in our business.”
The trio of men behind the KLR Marketing system – Jim Lindsay, “Landsborough Downs”, Hughenden, Rod Knight, “Kooramilla”, Tamworth, NSW, and Grahame Rees, Bathurst, NSW – don’t like to use the phrase ‘Cost of Production’, opting instead for ‘Cost of Carry’.
“Sometimes you can have a Cost of
“You can buy a 300kg steer in, hold it for a month, and it may not have put on any weight in that time, but you have still incurred costs such as transport."
“It’s all about how we view the exercise."
“It’s extremely important to know the Cost of
In any livestock business, there are direct costs associated with a particular mob or flock, such as transport in and out, drench, shearing, interest on money borrowed to buy the livestock, and so on.
Then there are overhead costs that come irrespective of what number of type of livestock you have on-hand, including shire rates, interest repayments on land loans,
“One of the other things that people are getting breakthroughs in using KLR is the ability to make a decision to sell and create
“Cashflow is something that people need to generate on a regular basis so they don’t get caught wondering how they’re going to pay the next bill.”
For the Moffatts, the KLR Marketing School fit into their overall belief in the power of self-education, and they were now also part of KLR’s Mastermind Group, where graduates networked and accessed further resources for implementing their new-found skills.
“Because your margin has become so tight these days, you need to maximise profit however you can,”
“By knowing our Cost of
“We've really broken down our Cost of
“Being able to look at our Cost of
“I buy anything that I can make money out of,” he said.
“I could go to a sale and any class of animal can come home on my truck, it doesn't really matter.
“At the moment, we feed a lot of cattle up to feedlot entry weights and for anything that blows out of that weight grid we see if we can carry it forward to a kill weight at a profit.
“We've also got breeders at the moment and sell some as pregnancy-tested-in-calf (PTIC) and calve down others, depending on what’s most profitable at the time.
“If that animal is not paying its way anymore, then we look to trade that animal back into the market where that money is going to return us a positive gain on another class of animal.”
The Moffatts operate 3240 hectares (8000 acres) in a rotational grazing system, with pastures dominated by softwood scrub country through to River Bluegum, and Brigalow country to open Soft Bloodwood forest country.
Grasses include Leucaena,
“The one thing that KLR has allowed us to do as a young start-up business is to
“Cashflow is everything, really, especially in the current environment we live.
“What banks really want to know about is cashflow - not equity.
“Whether you’re a breeder or whatever operation you run, understanding your Cost of
New to KLR
We have produced a 78 minute CD where, Jim,