Big picture decisions: efficiency vs.\u00a0throughput
\nIn large part, this choice depends on the state of the market. In\u00a0bad times, the focus should be on efficiency in three main areas:
\n1. Managing cash flow through controlling costs, reducing
\ncapital spending, renegotiating rental or expense
\nagreements or reducing cash dividend removal.
\n2. Extending or renegotiating loan terms.
\n3. Liquidating a portion of inventory to pay down debt.<\/p>\n
When you\u2019re making money, it\u2019s best to maximize throughput and weights to reap as much profit as possible. In this scenario, market weights and sow inventory increase, as do diets with the inclusion of nutrients or ingredients to enhance growth rate. These changes should be made even at the cost of efficiency and price increases in order to maximize revenue. In leaner times, efficiency is king, as low efficiency animals are removed, market weights are lowered and diet costs are reduced to obtain the lowest feed cost per unit of gain.<\/p>\n