It’s the toughest year in dairy since way back, even before milk was sold in glass bottles and China was still in the dark ages.
While the majority of farmers will get through this downturn, there are some that won’t make it. Those that do will be doing everything they can to reduce expenditure and manage their cash flow. Farm owner’s need their staff’s help in achieving this. We’ve put together a few basic tips for staff that might help.
When purchasing products for use on the farm don’t buy them unless you are going to be using them that month. Too often, managers are over ordering product, which retailers are more than happy to supply. For example, there is no need to order two drums of teat spray if you’re only going to use one in that month. Having that cash sitting in the bank just might make the difference.
Think about ways in which you can use products more effectively and don’t be afraid to ask your supply reps for advice around this.
Make sure you’re getting the best price for the items that you are purchasing. It’s easy to just head down the road and buy from the guy you always buy from. But you need to ask yourself, “Am I getting the best bang for my buck?” Tools like AgriTender will help you ensure you’re making the best purchasing decisions.
Electricity is a major expense for farm owners. Be mindful of this, even small things like ensuring the lights in the cow shed are turned off when not needed. Make sure water leaks are fixed so pumps aren’t running overtime and that you’re using power efficiently at your house.
If you don’t absolutely need it then go without and always check with your boss before ticking anything up at your farm store.
Share and discuss with other staff what you’re doing to help reduce costs on the farm. Talk with your neighbours and friends who are also in the industry as they might also have some smart advice around reducing expenses.
Lastly stay positive, work hard and make sure your boss is doing ok.
Over the next few months we’ll be talking with farmers about what they are doing to reduce expenditure. We’ll be sharing these with you, so stay tuned. If you have any tips and advice for other farm staff then please fire them through to us at email@example.com
Blake is the head of our sales and marketing team.