Livestock Operation Model

The model is built around a herd roll-forward for both cattle and sheep. Opening numbers plus births and purchases less sales and deaths determine closing numbers, and this reconciliation must balance every year.

• Births are calculated from breeding cows or ewes multiplied by a weaning rate, while deaths apply a mortality rate to the opening herd. Replacement animals retained for breeding are excluded from sale volumes, so the biological capacity of the farm constrains revenue rather than allowing a simple growth rate.
• A carrying-capacity check compares total herd dry sheep equivalents with the hectares available, preventing projections that exceed what the land can support. This structure means changes in breeding performance, mortality or retention policy flow directly into the number of animals available for sale and shearing.

Revenue comes from four documented streams: finished cattle, lamb, wool and cull breeders. Cattle revenue multiplies head sold by live weight, dressing percentage and beef price per kilogram of carcass weight.

• Lamb revenue uses lambs sold, carcass weight and lamb price. Wool revenue applies fleece weight, clean yield and wool price to the number of sheep shorn.
• Cull breeder sales are a smaller stream based on head culled and a price per head. Prices grow at annual rates and are hardcoded assumptions, so the model illustrates how commodity price movements and herd size interact.

Seasonal peaks are smoothed at annual granularity, which suits long-term planning rather than within-year cash timing.

Costs are driven by physical activity. Supplementary feed depends on total head, daily intake, the proportion purchased and feed price.

• Veterinary, shearing, transport, saleyard commission and levies are linked to head counts or sales revenue. Operating expenses cover permanent labour, fuel, repairs, land rates, insurance and administration, with most tied to revenue or opening fixed assets.
• Capital expenditure includes maintenance and growth spend, while land sits outside the depreciable pool because it is non-depreciating. Debt comprises a land mortgage, equipment finance and a seasonal overdraft, each with its own interest rate, term and repayment method.

Interest is calculated on the prior closing balance to avoid circularity. Covenant checks test loan-to-value, interest cover and debt service cover, so the financing structure remains visible alongside operating performance.

The model outputs a five-year income statement, balance sheet and indirect cash flow statement. The income statement moves from revenue through gross profit to EBITDA, EBIT, profit before tax and net profit after tax, with standard corporate tax and loss carry-forward.

• The balance sheet rolls forward assets, liabilities and equity, including biological assets at cost, while the cash flow reconciles net profit to operating, investing and financing movements. A checks sheet validates balance sheet integrity, herd reconciliation for each species, cash positivity, covenant compliance, gross margin range, carrying capacity, mortgage decline and non-negative loss carry-forward.
• Practical use is evaluating whether herd, price and cost assumptions support debt service and capital needs. The public download is a values-only preview, not a live formula workbook.