Jul 28, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Cost Control’s Strategic Role

January 8, 2009
By: Sara Schafer, Farm Journal Media Business and Crops Editor
 
 

Linda Smith, Top Producer Executive Editor
 
A reader asked us why market advisers always emphasize you know your cost of production when the market doesn't care and may not offer you that much.
 
Here's a response from one adviser…
 
"One of the most profound things I ever heard about the importance of knowing cost of production for competitive reasons was said by the marketing manager for a huge farming operation with nearly $10 million in annual sales,” says Dan Manternach of Doane Agricultural Services.

"He said: ‘We got this big by focusing on one strategic objective. To make sure that among our competition in farming, we were always the last one to start losing money in a down market and the first one to start making money when prices turned higher. It's all about cost of production in the long run in farming. That's why we know our costs to the penny and how we've ended up buying out competitors who didn't.”

 

 
You can e-mail Linda Smith at lsmith@farmjournal.com.
 

See Comments

RELATED TOPICS: News, MoneyWise

 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

 
 
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions