Clay52
Member
- Location
- Outer Space
Not having a cash buffer in an industry like dairy that has up and down price cycles is just bad business.If you have a heap of money saving investments and cant pay your bills in a downturn you'll need to pay your debts before the heap grows in a good time, by which time the next downturn arrives.As for blame its always someone else's fault.
Most money saving investments have reasonably long pay off times. Most wont be overall cash flow positive in the time the next down turn is expected.
So while in the long run something is a good investment. In the short term it can hurt you getting through low milk prices.
Or could just go with what most dairy farmers do. Price goes up. New tractor, new car, new motorbike, new bailer. Price drops. “Who do can we blame for me not having money to pay my bills, it must be the big farmers fault”
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