Chance to lift profitability of sheepmeat enterprises

摘要

In this the first of a two part review by consultants Holmes Sackett and Associates sheep enterprises are compared to cropping and beef production. Decisions on enterprise choice need to take into account a number of factors, of which financial indicators will always have a high priority. Of the financial indicatois, relative returns are a normal starting point but it is also important to consider the working capital requirements for an enterprise as well as the volatility of returns from year to year. The latter are often particularly important considerations post drought when farm incomes are stretched and so working capital may be limited and enterprises which provide less volatility may be preferred.