Changing to maintain profitability

1
Changing to maintain profitability

• Janet Moxey
• Director
• Moxey Farms Pty Limited

2
Brief History

• 1919 - Moxey Family commenced dairy farming at
  Richmond NSW
• Started with 25 cows on 10 hectares
• Peaked at Richmond in 2003 milking 850 cows on
  265 hectares
• Sold out of Richmond in 2008

3
Brief History

• 1992 - Purchased The Angle continued
  buying neighbouring farms
• 1998 - Commenced milking cows at Gooloogong
• 2002 - Leased neighbouring 725 has
• 2003 - Purchased lucerne farm with secure water
• 2006 - 1st approach for JV interest
• 2008 - Sold Richmond. Agreed to involvement
  in a joint venture.
• - Purchased Nanima

4
Key Factors

• Enough feed
• Enough cows
• Enough cash

5
Key Factors

• People
• - Staff
• - Professional Advisors
• - Bankers

6
Change
7
Proposed Investment Opportunity
Dairy Operating Facility

• Current
• Free stall barn and milking facilities for 2,000
  cows
• 2,000 milking cows
• 37 employees
• 25 million litres

• Proposed
• Free stall barn and milking facilities for 4,000
  cows.
• Dry Cow Free stall Barn
• Heifer Facility
• 4,000 milking cows
• 59 employees
• 52 million litres

Land water assets

• Current
• 2,839 hectares of land
• 6,551 ML of bore water entitlement
• 6,054 ML river water entitlement

8
Business Model

• Success factors
• Security of low cost forage
• Optimise capital efficiency through the operation
  by balancing
• Cow numbers
• Feed water resources
• Milking capacity
• Loyal and committed team
• Labour efficiency
• Proven large herd management information systems
• Strong market relationships

• Markets
• Production infrastructure
• Herd composition management
• People
• Feed source reliability
• Location

9
Changing to maintain profitability?