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Cost Cutting without Short Cutting
By Tyler Kelley, Pork Magazine - Even without the dismal specter of a 1998-type crash, hog prices won't be moving higher soon. Add increased feed costs to the equation and it could be mid-2003 before many pork producers are profitable again.
During cash-crunched times, it's important to put your operation under the microscope to see if there are ways to trim extra costs.
"The effect of cost cutting varies quite a bit from farm to farm," says Will Marsh, owner of FarmWise Systems. "It's harder and harder for the most efficient farms to cut costs, but many operations have great opportunities to increase efficiencies. That could mean the difference between losses and small gains in the near future."
While it may seem hard to find places to trim costs, it's not impossible with some critical dissection of your system. And that may require an outside set of eyes.
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(November 2002)
