Profitability Insights From 10 Years of Dairy Farm Monitor in NSW

In this episode we take a look at features of the Top 25% of NSW Dairy Farm Monitor Farms in terms of their profitability and productivity over the last 10 years.

Funding from the NSW Farm Business Resilience Program enabled this project to happen. It has highlighted key physical and financial traits of the top performers such as herd size, usable land area, production, stocking rate, cow and labour efficiency and cost of production.

Farmers and industry are always keen to understand features of profitable dairy businesses under different conditions. In Australia we are fortunate to have a national program led by Dairy Australia called the Dairy Farm Monitor Project that enables us to do this across the different dairying regions with the support of generous anonymous dairy farmers who provide their time and information. This supports individual businesses understand their performance but also provides us with insight into farm performance during the course of a year and trends over time.

Useful resources related to this podcast:

NSW Dairy Farm Monitor Annual Reports

NSW DPI Dairy Breakfast (webinar) recording

This podcast is an initiative of the NSW DPI Dairy Business Advisory Unit

It is brought to you in partnership the Hunter Local Land Services

Please share this podcast with your fellow farmers and colleagues and feel free to contact us with suggestions or comments via this email address thebusinessofdairy@gmail.com

Further NSW DPI Dairy channels to follow and subscribe to include;

NSW DPI Dairy Facebook page

DPI Intensive Livestock Twitter feed

NSW DPI Dairy Newsletter

Transcript 

Produced by Video Lift

The information discussed in this podcast are for informative and educational purposes only and do not constitute advice. 

Transcript

The Business of Dairy 

Episode #15 Transcript – “Profitability Insights From 10 Years of Dairy Farm Monitor in NSW”

Sheena Carter: Welcome to the Business of Dairy Podcast, I'm Sheena Carter, Development Officer with the New South Wales Department of Primary Industries Dairy Team. Farmers and industry are always keen to understand features of profitable dairy businesses. In Australia, we are fortunate to have a national program led by Dairy Australia called the Dairy Farm Monitor Project. With funding from the New South Wales Farm Business Resilience Program, we the New South Wales DPI have been able to take a look at the first ten years of New South Wales data through a different lens, taking a deeper dive into the characteristics of the top 25% farms in the project. In this session Nico Lyons, DPI Dairy Team Lead, facilitates the podcast and explores the results with Tori Alexander and myself as guests. 

Nico Lyons: Welcome to the Business of Dairy podcast, Sheena and Tori, it is a great privilege to be on this side of the episode this time. So we've recently completed a short project named, Getting More Value Out of Benchmarking in the New South Wales Dairy Industry, and this episode is about learning more about what we found there. So Tori, can you tell us a bit about what the project was about, what were we trying to achieve and how did we go about it? 

Tori Alexander: Sure Nico, so the project is sort of an offshoot from the Dairy Farm Monitor Project that a lot of people are probably familiar with. So that is a national program led by Dairy Australia, it provides an annual report with a comprehensive look at farm performance and profitability on a state by state basis. So within New South Wales we get an annual New South Wales Dairy Farm Monitor report and that has been running since the 2011/2012 financial year, so we currently have ten year’s worth of data and reports. So in New South Wales, the Dairy Farm Monitor Project is coordinated by the New South Wales Department of Primary Industries and we collect data from farms who are happy to participate in the project, and if these farmers weren't happy to participate, we wouldn't have the project, so a big thanks goes to those farms who put their hand up and offer to share their farm data with us so that we can produce these reports. Over the ten years, so starting 2011/2012, we've had a total of 78 farms that have participated in the New South Wales Dairy Farm Monitor Project, but it's important to remember, or note, that not every single farm participated in every single year of the project, so we do have farms coming in and out over that ten year period. 

So we partnered with the Farm Business Resilience Program so that we could extract more value out of that ten year collective dataset and focus on looking at physical and financial performance and trends over time that are related to farm profit and business resilience. So again, a big thank you to the Farm Business Resilience Program for partnering with us to do this work and importantly acknowledging that that program is funded by the Australian Government's Future Drought Fund as well as the New South Wales State Government. 

With that in mind, that equated to a total of 333 individual farm files. So that's because we've got farms that may have been in the project for all of these years and then the farms coming in and out. We also made sure that we adjusted the financial indicators to account for inflation over time.

Because we're looking at trends over time, we decided that any farm that had participated for less than three years in the project was removed from the dataset before we analysed the data. So that left us with 48 farms or a total of 288 data files. So still quite a large dataset. And then, so that we could then look at trends over time, we needed to classify the data into two groups, which we called the top 25 group and the main cohort group. And the criteria to be in the top 25 group was that farms were sorted each year based on their ROTA, so their return on total assets, and on their EBIT, so their earnings before interest and tax. And then any farm that reported a ROTA or an EBIT that was within the highest 25% for that year was then classified in the top 25 group for that year, and the remainder of the farms were classified into the main cohort group. 

Something to stress when we keep in mind this methodology, it meant that it was possible that a farm could be a top 25 group farm one financial year, but another financial year it wasn't. When we interpret the results, it's important that we're not always looking at the same farm in the top 25 group, but that there are farms coming in and out. And in fact, we had seven farms that were always in the top 25 group, and the rest of the farms were coming in and out of the group. A key difference too, with this methodology compared to the annual Dairy Farm Monitor Report, is that the Dairy Farm Monitor Report only looks at the top 25% as measured by ROTA, but there are businesses that can generate a very high EBIT that get excluded from the top 25 group, or the top 25%, based on ROTA alone because they may have very high asset values. So land values for example, which could be due to geographical location and competing industries. So that is one… well, the reason why we included both Rota and EBIT as the criteria for being included in the top 25 group. 

Nico Lyons: That sounds really very interesting in the approach you've taken to address this data and get further value out of it. Are you able to share with us some of the key features of those top 25 farms compared to the rest? 

Tori Alexander: Yes. So looking, in general, at some of those key physical aspects of the top 25 group, some of the things that stood out was that the top 25 group had an average larger herd size and average larger usable area and an average larger milking area than the main cohort group. But when we looked at the stocking rates on the usable area, they were almost identical, so there was the same number of cows per hectare of usable area between the two groups. 

If we look, just in general, at milk production, so both in litres and kilograms of milk solid, the top 25 group had a higher milk production than the… a higher average milk production than the main cohort, and they also had a higher productivity when it came to the usable end, so they had a higher kilograms of milk solids per hectare on average. 

A couple of the key measures of efficiency, so cow efficiency and labour efficiency, were looked at. So when it comes to cow efficiency, we're talking about the amount of milk solids, so that's fat and protein produced per kilogram of cow live weight, and on average, the top 25 group had a 5% greater cow efficiency than the main cohort. And then looking at labour efficiency, again, this is in terms of the amount of the kilograms of milk solids produced per labour unit, so that is full time equivalent, and this is including both paid and imputed labour, we saw that the top 25 group had on average a 33% higher labour efficiency than the main cohort, so for those two key measures of efficiency, the top 25 group was showing a higher average efficiency. 

Nico Lyons: Thank you very much, Tori. I think that that's a really great insight into the key features of those two groups of farms, and I guess now, Sheena, we’ll probably flick to you, at least I would be very interested to hear a bit more about what was some of the productivity, or profitability, results that you found in this study and the difference between those two groups? 

Sheena Carter: Yeah, thanks, Nico. It's good to be on this side of the microphone for this podcast and have you asking the questions. Look, obviously, the top 25 group are the more profitable farms in this analysis, but before I just, you know, dip into what that actually looked like, I just want to set some context and explain a bit of terminology as well. So we're going to be talking in dollars per kilo milk solids throughout this podcast, and that's how we report in Farm Monitor. In New South Wales, we have farmers that are paid either on dollars per kilo milk solids, and some that are paid on cents per litre. So just for those that aren't bilingual, if you want to convert dollars per kilo milk solids to cents per litre, roughly divide it by about 13.7. So that comes about because if we're looking at a cow producing say 3.9% fat and 3.4% protein, that gives us 7.3% solids, so to get one kilo of milk solids, it's going to take us 13.7 litres. So that's our conversion factor. The other thing I wanted to put into context when we're talking about target performance levels in terms of profitability, is that the Australian dairy industry as part of the Australia Dairy Plan Profitability paper, they've set an industry target of $1.50 per kilo milk solids EBIT, or operating profit, to be achieved by 50% of farms in at least three years out of five. And that translates to around about a 5% return on total assets managed, and you know, Tori's mentioned that land pricing is a factor here, so it is roughly a 5% ROTA, depending on land values and asset values as well. 

So when we look at our New South Wales data set over that ten year period, our top 25% group in the project actually managed to average $2.23 per kilo milk solids over that ten year period. So that's about 16.3 cents per litre, which translated to a 6% return on total assets. So that tells us that there is definitely financial reward in operating a dairy business well. The main cohort, that we're sort of comparing the top 25 to, so all the others, they averaged about $0.35 per kilo milk solids over that ten year period. So there's variation in profitability across the ten years and certainly within years as well, and that's dependent, you know, obviously on different seasons, different seasonal conditions, different input costs and different milk pricing. All these things will impact the operating profit that is achieved in a single year. So yeah, at a high level that that's where these farms sat in terms of profitability, Nico.

Nico Lyons: Excellent. And I think that's obviously partly explained by grouping those two different distinct groups. But if we dig deeper into those… that top 25 group, how do they do this, kind of, what's in those farms and farmers that explains these results? 

Sheena Carter: Yeah, it's challenging, Nico. Some of it we can quantify, but a lot of it comes down to the skills and the management ability of the people operating these businesses, managing the resources that they've got available to them really well in different conditions that they're presented with across different years and throughout, you know, different seasonal conditions within a year. So generally they're running very efficient businesses. They make good and timely decisions and they'll plan ahead. So, you know, in terms of things like risk management, they'll be looking at fodder markets, grain markets, they'll be seeing what's happening internationally and domestically and they'll be, you know, doing things like taking a position on that and saying, well, am I going to buy grain on the spot market or am I going to contract it in and, you know, flatten out some of those fluctuations? That's just one, sort of, example of where they're managing risk in their business particularly well, which they tend to do consistently. You know, they're timely with their operations, they're ready to sow, they've got stuff on hand ready when the conditions are right, ready to go. So it is a management skill set that they tend to do very well. 

Nico Lyons: So, Sheena, like, if milk is the main income on most dairy farms, are these top 25 farms securing a higher milk price? 

Sheena Carter: Yeah, this is interesting, Nico, I guess, you know, there's a couple of things. Milk price certainly is important in help generating a profit, unfortunately, it's generally out of a farmer's control. So, as with all things in life, we need to focus on what we can control on a farm, which is pretty much our production and our inputs and our costs. But what we see with the group here, when we're looking at the top 25 compared to the remainder, no, they actually… the top 25 are receiving a lower average milk price. So in eight of the ten years of the project, the top 25 were receiving a lower average milk price than the rest. And I guess, you know, one of the years to really highlight this was the 2012/13 financial year, this was one of the lowest milk pricing years that we saw. And in that year, the top 25 group had an average milk price of $7.23, while the rest of the farms had an average of $7.61. And how this translated in terms of operating profit, the top 25 still managed an operating profit, or EBIT, of $1.43 per kilo milk solids, and the remainder of the farms were actually in slightly negative territory with operating profit minus $0.17 per kilo milk solids. So no, obviously there's variation between farms, but these farms aren't necessarily getting the highest milk price. 

Nico Lyons: That's really surprising. If milk price is not much higher for these top 25 farms, then surely the cost of production is much better. 

Sheena Carter: Yes, this is true. Now, before… again, I seem to be doing a lot of definition/clarification here, but when we're talking about cost of production in Farm Monitor, we're talking about true cost of production. So this isn't just cash cost of production. Cash cost of production, these days we refer to as farm working expenses, but true cost of production factors in some non-cash costs, such as depreciation and imputed labour, which we've mentioned a bit before, but it also factors in some inventory change. So livestock inventory, feed and water inventory change, that's related to the production of milk within a financial year. So we're talking true cost of production here. And I also want to say that we need to caution against trying to achieve the lowest cost of production. Generally in the long term, the lowest cost of production isn't going to be sustainable. People will tighten their belts when times are tough, and trim costs to, you know, manage the situation that they're in. But the lowest cost to production isn't sustainable. 

The other thing, when we're looking at New South Wales cost of production relative to other dairying regions within Australia, we tend to have a slightly higher cost of production. In part, this is due to, generally, we have year round calving systems. New South Wales is historically a liquid milk market for milk, generally about 60% of our milk goes into that liquid milk market, so processors are looking for a flat, or flatter, supply of milk throughout the year. With this come increased costs in the business. So if we've got a flat calving pattern throughout the year, we know we don't have a flat feed pasture production throughout the year, there's gaps, peaks and troughs. So when we're in those troughs, in our feed gaps, that's, you know, we've got slightly higher feed costs there, either the farmer has to conserve that feed as hay or silage, that comes at, you know, slightly more cost than directly grazing the grass. And there's lots of other factors, you know, heat stress, types of pastures being grazed, smaller farms with higher proportions of imputed labour, etc. So we tend to have a slightly higher cost of production than other dairying states, particularly the southern dairying states. 

But for the top 25 group of farms, over that ten year period, their average cost of production was $6.64 per kilo milk solids, and this compares to an $8.57 cost of production for the main cohort. Obviously there's lots of variation within that, within the groups and within farms, but over the ten year period for the top 25 group of farms, this cost of production has seen an average range from $6.13 to $7.52 per kilo milk solids, compared to the main cohort of farms, where their cost of production has ranged from around $7.88 up to $10.00. That $10.00 was in recent years when we had incredible tight feed supply, high feed costs and, you know, that severe drought, prolonged drought. So yeah, they do have a, you know, tighter control of cost of production for sure. 

Nico Lyons: So there's multiple costs that kind of go in and add up to, kind of, come up with a total cost of production, and feed is probably the largest one, accounting for almost 50-60% of the total operating costs in general, are these top 25 farms managing the feed costs much better than the rest, in general? 

Sheena Carter: Yes. Yes, so feed costs, as you say, they are the largest, generally the largest, cost in operating cost within a business, and again, this is where these farms are achieving some good cost control, and they're not buying cheap feed, because you can't produce good milk with cheap feed, but if we look at total feed costs on a dollars per kilo milk solids basis, as we've done in this analysis, the top 25 averaged total feed costs of $3.55 per kilo milk solids, compared to $4.20 for the main cohort, that's averaged over that ten year period. So again, there's variation within this, within different seasons, drought impacts, etc. but they are able to manage their feed costs more effectively and achieve good milk production from the feed that they're feeding to the cows. 

Also, when we're looking at total feed costs, we are looking at both home grown feed costs and purchased feed costs. So, a couple of important things here with our homegrown feed costs, you can actually have, you know, generally this is a relatively cheap feed compared to purchased feed costs, but they can become expensive, not necessarily because of high input prices, so high fertiliser prices and high irrigation costs, but it's, sort of, an efficiency thing. If we've got, you know, we're investing the money and growing the pasture, but we're not necessarily growing good quality pasture, or as good as it could possibly be, or we've got low pasture utilisation, so wastage of our pasture, this actually makes our feed more expensive. And if you've got that lower production, lower quality feed, less feed to meet your target production levels, you're either going to have to, you know, probably purchase other feeds in to meet the energy needs for those required production levels. So we need to make sure that if we're in a grazing system, as an operator, we've got very good grazing management and pasture management skills because they will influence our profitability. I'm talking grazing farms here, similarly for the TMR or zero grazing farms, for them, it's still around quality of feed that they’re… fodder crops that they're growing and yields of those crops. They want to achieve high yields and good quality. If we look at our purchased feed costs, you know, the actual cost of purchased feeds might be higher on our top 25% farms, but they've got efficient cows and they're getting excellent production, or conversion of the feed to milk. So the feed that they're purchasing, converting it really well to milk. So yeah, there's a few things within those feed costs, Nico, but they are… they do have lower feed costs on a dollars per kilo milk solids basis. 

Nico Lyons: So you mentioned their, kind of, cow efficiency, and Tori tapped into it at the beginning with those key features too, what exactly do you mean by these top 25 farms having more efficient cows? 

Sheena Carter: Yes, cow efficiency, as mentioned, it's a ratio where we're looking at kilograms of milk solids produced per kilogram of cow live weight. So there's a general rule of thumb that an efficient cow will be producing one kilo of milk solids per kilo of body weight. So if we've got a cow that's 100% efficient, she's a 500 kilo cow, and in a year she will produce 500 kilos of milk solids in that year. If we look at our top 25 group, they've averaged over that ten year period, a 93% cow efficiency compared to 88% in the other group. And noticeably in the last couple of years there's been a bit of a productivity gain here with that top 25% of farms compared to the main cohort. So their cow efficiency has actually got a bit of an uptick, it's improving again. 

Another thing with cow efficiency, it's… we wanted an efficient cow, but we can go too far with cow efficiency. So there's, you know, kind of like a tipping point in that if you're pushing efficiency too hard, well there's likely to be an impact on profitability, and this is pretty much got to do with the feed costs associated with achieving it. So high efficiency is achievable, but it can come at a cost to the business. 

Nico Lyons: So, if I'm a farmer and I listen to those messages around, kind of, growing a lot of feed and converting that into kilograms of milk solids or litres of milk, what are the levers I can pull, or how do I make sure my cows are efficient? 

Sheena Carter: Yeah, again, this is, it's a complex space. Like all things in dairying, there's no, you know, simple answer to this, but it's things like milking the right type of cow for your system and resources, so, you know, the right genetics in your herd. Again, are they grazing quality pastures and getting good feed conversion efficiency with it, and there’s strategic use of concentrates with that as well. Things like the herd profile, what does the herd profile look like in terms of, you know, stage of lactation? So if you're in a year round calving system and your average days in milk sits at around 220, your cows aren't going to be as efficient as, you know, turning feed into milk compared to a farm that has a fresher herd profile, it, sort of, sits around 170-180 days in milk. So there's lots of things at play with efficient cows, and again, it comes to that farmer's skillset and management ability in being able to juggle and optimise all those variables. 

Nico Lyons: It all comes down to management, it appears. Are there any other costs or efficiencies that stand out when you look at those top 25 farms, is there any other characteristic that came up in the analysis? 

Sheena Carter: Yeah, one thing that always, sort of, comes out is overhead costs. The top farms tend to have more cost control with their overhead costs. The big ticket item in our overhead cost is labour costs, total labour costs, so there’s paid and imputed labour and labour efficiency. So just to go back to our imputed labour, we use imputed labour in Farm Monitor to, sort of, standardise a value for owner operator labour that's, you know, generally they take drawings out, they're not paid a conventional salary like an employee, but if we look at drawings, every farmer will have a different level of drawing. So we have imputed labour and we put a standard value, one full time equivalent is a person who was working 2400 hours in a year, and the dollar value on that, as of this financial year, will be $34 an hour. So total labour, paid plus imputed labour, takes up about 60% of our overhead costs. And this labour efficiency is really important in this area because, Tori mentioned it earlier, but we've got our top 25% farms, they're producing, over the ten year period, they've averaged 44,500 kilos of milk solids per full time equivalent labour unit, compared to about 35,500 for the main cohort. So, I think Tori said that was about a 33% difference, so that's, that's quite significant. And, as again with dairying, it's a complex space – labour efficiency – I mean we can have lower efficiency as a result of farm infrastructure and layout, so that will impact things like cow flow and time management, you know, if we haven't been reinvesting back into the farm with dairy upgrades or laneway improvements over time, this can impact on our labour efficiency and also cow production. So yeah, it's also related to production levels as well. 

In terms of the cost of labour, we see the top 25 had an average labour cost of $1.72 per kilo milk solids over the ten year period compared to $2.26 with the main cohort. You know, that's quite a significant difference. Another factor impacting our overhead costs is over capitalisation with plant and equipment or underutilisation of plant and equipment. Why this is important is that plant and equipment comes with a couple of costs. Obviously we've got, and I'm talking operational costs, we've got repairs and maintenance, and in our true cost of production, I mentioned earlier, depreciation. So sometimes for farmers over capitalisation could be seen as a choice. Some farmers love machinery and they have a reason for having it all, but sometimes it's also a result of a system, or conditions, in which the business operates. So, we tend to see in New South Wales, perhaps compared to some of the southern states, that a lot of our farms have got feed pads, you know, whether it's a gravel feed pad or a concrete feed pad, that they are generally using at opportunistic times of the year. So I mentioned those feed gap periods earlier, where they might be feeding hay or silage onto a feed pad, supplementing the cows ration, or they might be in a partial mixed ration system where they're using the feed pad slightly more throughout the year. But regardless of the frequency of use, if you've got a feed pad, you've got associated feeding out equipment that comes with that. So this has got a depreciation cost and also repairs and maintenance expenses that go with it throughout the year. 

The other thing that we tend to see in New South Wales is a lot of farmers buy their own hay or silage making equipment, you know, we've got a really dispersed industry throughout New South Wales and it's proving very difficult to get contractors in general, but particularly at the right time when you need them to get hay or silage off. So having that additional equipment comes with, you know, our repairs and maintenance and depreciation costs and also the cost of labour in actually operating that machinery. So there's costs there, that if we haven't got efficient businesses, these can add up. And then also with smaller farms, you know, regardless of farm size, you still need tractors and motorbikes and other equipment, but, you know, if some of these smaller farms were to be completely efficient, they might actually only need one and a half tractors, but there's no such thing as half a tractor, so, you know, we're still copying the full depreciation cost of that machinery and repairs and maintenance costs. 

Nico Lyons: Excellent. So, yeah, I think it's those little decisions that added up make, kind of, cost control, spending the right amount in the right areas, being efficient with every unit that you spend and taking good decisions and timely decisions, as you mentioned before, overall within the business, but also in time, which is the challenging thing for dairy, of course. So the project has highlighted some key features of those profitable farms and we mentioned, not necessarily a higher milk price, but yes, cost control, cow and labour efficiency, control of overheads and depreciation. How can farmers use this information in their own businesses, or what can farmers do if they want to take up some of these messages? What would be your suggestions, Sheena?

Sheena Carter: Look, I think what we've been speaking about, and what we report in Dairy Farm Monitor each year, this information is really average data for a group of farmers in the New South Wales industry over time, and there's a lot of variation on, you know, individual farm performance between years, but it does give us excellent insights into trends and traits of the top performers over time, which we can use as farmers and as an industry. I would say to an individual farmer, if you don't have this information yourself for your own business, so if you're not part of Dairy Farm Monitor, or you don't do some sort of business analysis using something like Dairy Base or the Business Snapshot Tool, available through Dairy Australia, I would really encourage you to do this as a starting point because you need that good data to analyse your business and understand your current position, you know, and be able to identify areas that you're doing well and perhaps those other opportunities in the business where you can improve performance. And these reports give you a really good understanding of things like your cow and labour efficiency and cost of production, so there’s the physical and financial analysis that comes with them. Once you've got that information, then you can use that to have, you know, discussions with your consultants, advisors or, you know, other farmers that are operating a similar system to you to work out how you can improve the business or where the limitations in your business might be. I think that's really the starting point. You can't make decisions unless you've got that understanding of business performance in black and white, you know, there's no tall stories and hiding behind things when you've got the numbers that actually tell the story for you. 

Nico Lyons: Yeah, and you cannot really, going back to the old saying, you cannot really manage what you can’t measure, so measuring and knowing where you stand is a first good start to it. So look, Sheena, thank you very much for those insights, and we'll probably loop back to Tori. Tori, where can people go for more information, or what were some of the other tools or resources that came out of this project? 

Tori Alexander: We'll make a report available to industry that will have detailed results of what Sheena and myself have talked about today – that would be made available to industry and on our website. Other resources that have been produced from this project: one has been an online interactive report that will be a web based tool where you can visualise the key results from the New South Wales Dairy Farm Monitor Project. It will allow the user to access key historical, physical and financial information from the farms that have participated in the project over the ten year period. So it won't be limited to just one of the financial years, it will be all ten years, and within that you can fiddle around with what gets displayed, so you can select to see certain farms, they're not identified, but you can pick certain farms, different regions, on a per year basis and explore some of the trends in the data. 

And we've also produced a series of three animated videos which aim to increase awareness of the importance of the farm business analysis and benchmarking. So the videos can be either standalone or watched as a series, they're only short, around 2 minutes 45. There's an introduction video, just outlining the purpose of Dairy Farm Monitor Project, and then there's two other videos that delve more into details, so one is the key messages of Dairy Farm Monitor Project, and the other is the values and benefits of the project. So that is another resource that will be available online. 

Nico Lyons: Excellent. Well, Sheena and Tori, thank you very much for sharing, not only the project and what we were trying to achieve, but also the key results and take home messages and the tools and resources that are available, thank you both very much for your time today. From my end, it's been a great privilege to be, this time, on this side of the episode, and we hope to hear more about benchmarking and business performance in the New South Wales dairy industry and the value that collecting this information on a number of farms across time provides to industry as a whole. Thank you very much. 

Sheena Carter: Thanks, Nico. 

Tori Alexander: Thanks, Nico.