Decide your motives – then take action!

Continued negative trends for the global economy and their downstream effects on New Zealand and Australia’s economies and the dairy sector have highlighted the importance of farming businesses having a clear strategic vision combined with sound day to day planning, monitoring to ensure they maintain perspective. A strong link between personal objectives and business tactics driven by regular budgeting, analysis and strategic review is critical to performing in challenging times.

Re-focus not Re-cession

2009 is certainly living up to its forecast as a year of change and challenge. Recession has featured in so many forecasts it has developed a life of its own. It takes a real effort to maintain optimism with that sentiment around. Declaring the “R” word a swear might help our collective confidence.

The outlook for 2009 and beyond certainly looks challenging. For some this is simply history repeating itself (albeit with turbochargers) as the gloom and doom merchants forecast a substantial decline in economic fortunes.

While it would be foolish to ignore their warnings, it is important to keep a balanced perspective and remember lessons from previous downturns so your business is ready to capture opportunity when the trend inevitably turns upwards.

Recent signals about the prospects for Dairy are consistent with the sentiment I have picked up through local and international contact in recent months.  It confirms a fundamental change to the dynamics of international food markets and offers some of the best news for the primary sector has had some years. Its impact on asset values and sustainability needs to be carefully assessed to avoid over reaction and opportunity lost. It signals a real opportunity for consolidation and perhaps an ideal time to look off farm for new investments.

Consultation, time and difficult conversations