The College of Agriculture, Food and Rural Enterprises (CAFRE) has organised a series of meetings this month to provide some advice to dairy farmers on managing cashflow.
The meetings will hear from a panel of speakers, including an accountant, representatives from a bank and Rural Support.
The events will be held at 8.00p.m on three separate days, in different locations next week:
- Silverbirch Hotel, Omagh, Co. Tyrone on Tuesday, January 9;
- Armagh City Hotel on Wednesday, January 10;
- Bushtown Hotel, Coleraine, Co. Derry on Thursday, January 11.
The Department of Agriculture, Environment and Rural Affairs (DAERA) stated that despite recent increases in milk base price, some dairy businesses “are still not able to cover the full cost of production”.
It added that the end of January tax payment is a focus on many dairy businesses this year.
CAFRE finance advice
CAFRE financial bench marking has identified a range of production costs and profitability, depending on the efficiency of production and regardless of the system used.
CAFRE advised that cash flow budgets should include realistic estimates of the level of production, prices and timescales.
It added that cash is needed throughout the year but is not spread evenly across the months, as there are certain times when larger expenses must be paid.
The advisors stated that feed efficiency is “key” on a dairy farm, as for many businesses feed represents a significant proportion of the milk cheque.
Advisors will look at the factors affecting the impact of feeding level on financial margin.
A CAFRE advisor will also look at minimising the larger bills and the mixed merits of maximising milk output.
Rural Support has a range of services including support and mentoring for businesses in difficulty, which is a confidential service.
The support service also has dedicated resilience and succession workshops across Northern Ireland.