cutting costs

[4course]

in view of the possibility of a brexit and or a continuing reduction of sfp and the current produce prices I reckon its going to be vital to reduce costs by as much if not more than sfp/acre question is how, the falling oil price other than direct fuel costs does not seem to be following through as much as it should

 

[franklin]

Cant cut costs and maintain area without rents dropping.
If area reduced, would have to look at staffing, kit and all sorts.

Id pay 80 per litre for red diesel, and £300/t for urea if wheat was £175/t and OSR £350/t - falling oil will not offset output prices being so low.

 

[Zebbedee]

Cutting costs is a strange subject though. Many people would probably spend even more in an attempt to allegedly spread costs rather than just cut them. But I think for the next couple of years at least cutting cost will be key to survival for many.

 

[Zebbedee]

in view of the possibility of a brexit and or a continuing reduction of sfp and the current produce prices I reckon its going to be vital to reduce costs by as much if not more than sfp/acre question is how, the falling oil price other than direct fuel costs does not seem to be following through as much as it should

I know the oil prices are as low as they have been for many years but it is not as simple as that I don,t think because all the other costs are the same or higher and everyone's incomes are lower in all industries countrywide so everyone needs the saving in oil price to subsidise another part of there business so not really making much difference. Take the haulage industry as an example the biggest cost is fuel so it would dictate haulage prices should drop but in reality other costs are still there and work is less so all savings are absorbed within the business.

 

[yellow belly]

We all have to look at every individual operation from top to bottom and every cost from rent to accountants and values fees anything not Essential for the benefit of the customer how ever small has to be questioned
We have always done it this way or we have always used this supplier Is not a good answer if lower cost can be achieved from some one else
Break every job down to each simple operation and exclude the unnecessary however unpalatable that may be
Manufacturers have been doing this for a while

 

[fastfish]

As I have said before all variable costs are fixed and fixed are variable seed and chem prices won't come back very quick to many reps driving exp land rovers on exp drip to be paid for but electric water phone accountant deals to be done

 

[colhonk]

One cost we could cut is the Accs bull, but farmers will not stick together and all leave it. Every year I ask for a breakdown of where all the money goes and how does it get me more for my produce. All I get back is `thank you for renewing`.