At Dairysafe, we’re aware of the temptation to take shortcuts to trim expenditure for some in the paddock or on the factory floor, especially in tight cashflow periods.
A read of Rabobank’s August Agribusiness Monthly report by Michael Harvey highlights key pressures. “Across the southern export regions, milk prices for those not under contract have fallen more than 10 percent compared with the previous season,” Mr Harvey wrote.
As a result of the easing farmgate milk prices, dairy farmers in affected regions are bracing for a margin squeeze, the report said, with softer cull cow prices and a drop in heifer export volumes adding to the margin pressure for some.
In terms of dairy producers’ costs, Mr Harvey said, there is a mixed outlook. “Grain prices have drifted lower, which is welcome news for dairy farmers, and the outlook for prices for the current Australian winter crop is mostly favourable for purchasers. But in stark contrast, fodder (hay) prices have jumped, driven by supply concerns,” he said.
Tight cashflow conditions can lead to corners being cut with key business activities, including food safety.
However, not maintaining your Food Safety Plan is an invitation to hazards that can cause injury or illness if not effectively controlled. Other consequences could be increased incident reports, discarded milk and product recalls, damaging the budget and reputation more than expected.
If you believe you have an essential requirement that you cannot afford, please reach out before the damage is done. Contact Dairysafe on (08) 8223 2277 for a chat.