The U.S. poultry processing industry exhibits many unique characteristics, which combine to create challenges for stakeholders seeking to develop turnaround or restructuring strategies for poultry companies. Continued increases in feed cost, combined with lagging market prices for poultry products and reduced consumption, have created margin stress on all aspects of the industry, as well as diverse challenges for poultry processors and their stakeholders.
When analyzing the performance of a poultry processor, it is important to differentiate between the impact of day-to-day management decisions and the impact of larger macroeconomic factors. Turnaround success is centered on understanding the operating performance of the individual poultry producer. Availability of throughput metrics, including downtime, yield per line per hour, etc., is critical to evaluating turnaround and restructuring options. Failure to monitor poultry producers for signs of negatively trending performance metrics, and rapidly address issues identified at poorly performing operations, can result in unnecessary loss of collateral to stakeholders.
Our Operating Performance Matrix© for the P0ultry Processing Industry
In the face of such margin stress, processors and their stakeholders must quickly and carefully examine all factors affecting operating throughput to obtain advance warning of possible liquidity issues. Focus has hands on experience in poultry processing operations and financial performance analysis. Our team has developed an Operating Performance Matrix© which is easily adapted to the specifics of the client poultry processing operation.
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. The Focus Poultry Performance Matrix© provides a unique tool for understanding the combinations of performance which can result in a poultry producer achieving success. The output from this Matrix, when coupled with analysis of a poultry producer’s various metrics, contracts, etc., provide stakeholders with an ability to assess an industry participant’s likelihood of attaining those combinations of performance that would result in positive financial performance.
Our portfolio of products offered to poultry processors 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