The dairy industry, much like any other industry, has gone through a lot of tough times, especially in the last few years. A lot of small to mid-sized operations have gone “belly up,” but not without a fight.

With the way the industry is going, there are still a few small operations that doggedly refuse to give up as they believe they can ride out the storm. The question is, how many storms before it’s time to call it quits? According to Farm Journal’s MILK, there are three factors one should consider before deciding to stay in the game or move on to other ventures.

Cash Flow

A limited cash flow is usually the first sign of distress, according to Matt Lange, a dairy consultant with Compeer Financial. Know how much monetary ability you have by checking your checkbook balance. You should have enough for your operating loan, for payables, and for any necessary large-sum expenses. You might just be in a crunch, but if this happens regularly, it may be time to sell out.

Production Costs

Sam Miller, an Ag lender with BMO Harris Bank, says that a systemic problem with cash flow might mean that you have to look at your production costs. This can be reduced significantly, which may solve your monetary woes. Know which expenses are fixed and which ones can be reduced.

Depleted Balance Sheet

What does your balance sheet look like today compared to how it looked like a few years ago? Now ask yourself how your 2018 balance sheet will look like. If circumstances look dire, now might be a good time to consider a graceful exit.

It’s been a heck of a roller coaster ride in the dairy business. So are you going to stay or sell out? I’d really like to know what you think. Leave me a message if you’ve decided to look for a salaried position in the dairy industry. Here’s a link to the original article, by the way.

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Rick Pascual recruits in dairy nutrition for feed companies and their suppliers across the USA. He joined Continental Search in January 2015 and has successfully filled a number of searches for nutritionists, sales, and sales management for leading companies.

After completing coursework and a grueling exam, Rick became a Certified Personnel Consultant (CPC) in November 2015,.as well as a Professional Recruiting Consultant (PRC) by AIRS in April 2016. Visit his LinkedIn profile for more information and to stay updated with news about recent dairy trends.

Send Rick your resume at Call him at (302) 544-9288.