Financial Services
Part-time CFO Support Provided to Pork Production Operations
Production-Driven Financial Modeling
Financial models are based on key production drivers, commodity futures, rations and non-feed expenses. The models project earnings, cash flows, balance sheets, borrowing bases and financial ratios. Models are set up to be updated regularly as conditions change both inside pork production operations and in the marketplace.Budget-to-Actual Analysis
Compact spreadsheets are created to link actual monthly financial and production results into the analysis. Results are shown by production enterprise, broken down by pig flows, compared to individual revenue and expense line items and analyzed per head and by weight.Acquisitions & Other Changes to Operations
Acquisitions and other changes are set up so production and financial parameters can be adjusted in order to understand long-term economics under various production and price conditions. Sensitivity analysis is included. Ramp-up and ramp-down production models provide a full picture of capital requirements.
Lender Support
Communication with a producer’s lender provides support to loan requests and helps explain financial reporting. Loan terms and loan structures are evaluated.
Business Interruption Insurance Claims – Pork Production
Customers
Claims are set-up/analyzed for both pork producers and insurance companies.Financial Models
Models are created to compare the expected results as if the insurance event had not occurred to the actual outcomes to determine the business interruption claim amounts. Production parameters and commodity prices during the claim period are built into the models. Monthly analysis is provided along with narrative reports for each claim period.Experience
Business interruption claims under a variety of situations and conditions have been prepared for the pork production sector. These experiences are valuable in saving time, communication with parties involved, and supporting the accuracy of claims.Specialized Analysis & Consulting
Weekly Margin Estimates
Weekly margin estimates are provided to most customers based on corn, soybean meal and hog futures combined with their projected production and costs.Collaboration
Projects have been completed with other parties that provided their own special expertise such as nutritionists, marketing consultants, accountants, and attorneys.Other
Financial impacts are analyzed from competing bids to compare the expected outcomes under various contracts. A variety of tools have also been created such as inventory valuation methods and a sow housing conversion model to evaluate conversion from conventional stalls to open housing.