Small units spread the risk: Part 1

In this, the first article of a two-part series, a farmer spoke about his small yet highly diversified operation.

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There is no reason that a small-scale farmer cannot earn a reasonable income if he or she works hard and makes the most of their opportunities, says Frank Olschewski of Birkenhain farm near Ermelo.

He runs a highly diversified business comprising 40 sows, 5 000 broiler chickens, 40 dairy cows, about 70 Simmentaler cows, a small woodlot and a few other operations.

Each section of his overall operation, he says, is small enough to manage comfortably and is making money. In addition, each one adds to the total, providing a "reasonable" income for the farm.

SEVERAL SMALL UNITS

"I find that working with a number of small units is a good way to spread the risk. It sounds complicated, but in reality each section is easy to manage.

"I have learnt not to allow any one section to grow so large that it might become difficult to manage or complicate the management of any other section," explains Olschewski.

Each section has its own cost account: invoices are carefully apportioned to the respective departments; and anything done or provided by one division which affects another, for example, if the transport section ferries pigs to the abattoir, is charged accordingly.