The crisis lies in a milk supply that exceeds loosely demand (internal market, more external), and the wave occurs between the months of August to November. We don't know how long it will last but we must see that we do with the low price of milk. We publish here a series of decisions to be taken in the management of the tambo generated by an exchange between advisors dairy.
-The crisis does not affect everyone equally: The dairy farm that rents are on the front lines of battle, you need to renegotiate rents. The tambo to shut up, to make room to the farm, is also at the forefront of battle. Renegotiate mapping of surfaces, it is the right time to decide batches to verdeos summer. Start by recrias that complicate financially by not generating income.
– The income from agriculture will be of less help than other times, except that we cultivate food for the cows to achieve greater self-sufficiency in grain and/or forage.
– Reduce to the minimum the replacement of grass by concentrated. If you keep the “liters” free-even down to the production, we will be reducing spending and sending the market lower volume of milk.
-Lower the cost of straws of semen (the price range is wide)
– Analyze alternatives of Concentrates, taking advantage of by-products of lower cost by avoiding pressure on state of the cow. Start with settings on the rodeos of low production.
-Lower cost of veterinary products. The cows after calving are cleaning alone, apurarlas today doesn't make sense and the cost is high. Cow dirty but without the smell of the high prostaglandin.
-If you can arrange, it is a good time to give milk in the rearing of calves.
-Increase the selection pressure, the culling of the cows is a precious income.
-The staff knows the crisis, because he is also living, we avoid transmitting pessimism.
– Assume that the strategy is not only spring, but in 2016, with the likely devaluacion. Many companies must assume that they have a “weight loss” and review the design of both the business as the company.
– Please do not hesitate to reallocate assets in extreme situations, for example to sell heifers.
– Work with a financial budget. Without a plan all actions will be reactive and we can lose the course. Budgeting a good distribution of payments agreed to by the vendor, with a readjustment of the interest payment and amortization of loans with the banks, if any. Maintaining liquidity is critical.
– The great risk of these moments is to act without knowing where we stand, without knowing if our problem is economic or financial. If our situation is only due to a displacement financial, but our production system tolerates the current prices, it would be a very serious take action as if the problem were their own system. Conversely, if we have an economic problem, if we produce very expensive and we do not support these prices, evil we do in trying to solve it as if it were a financial problem.