As with other aspects of the agricultural sector, dairy operations have been significantly impacted by increased commodity input prices, changing relationships between sales prices and input costs, and decreased real estate values.
Dairy operators are seeing milk prices at historic lows, and commodity input prices at historic highs. Operators who expanded during the last increase in milk prices may currently be feeling balance sheet stress never experienced before. Borrowers and lenders are searching for balance sheet structures and operating profitability metrics that will work in this environment.
Our Operating Performance Matrix© for the Dairy Industry
Focus Professionals have hands on experience in dairy operations and financial performance analysis. Our team has developed an Operating Performance Matrix© which is easily adapted to the specifics of the client dairy operation. Focus Professionals can consider the debt structure and the cost structure of the operation, and then overlay that information with varying prices received for milk, varying production per cow, and varying feed costs. This type of approach shows the operator and the lender to assess the combinations of inputs which will result in stabilized operations and financial performance.
Our portfolio of products offered to our dairy clients includes:
- Court-Appointed Advisory Services
- Restructuring Services
- Interim Management Services
- Business Viability Assessment
- Operating Performance Matrix©
- Turnaround Management
- Asset Recovery
- Organizational Review
- Operational Process Improvement
- Cash Flow Optimization