“Don’t let a good crisis go to waste,” is an overused, but sometimes appropriate quote. Crises can reveal vulnerabilities in business that were otherwise hidden. These authors look at reinforcing those cracks before the next challenge emerges. The context is dairy. The value extends beyond a dairy setting.
They share 15 lessons from their observations of the last few months:
- All segments of the food chain are critically important.
- Just-in-time supply has a fault line.
- Margin is cushion.
- Risk management should be routine.
- Business models need to be evaluated regularly.
- Fear drives prices down.
- Beware of the wolves.
- Repair of confidence is as critical as repair of the system.
- More meals are being eaten at home.
- Consumers are going back to the basics: wholesome, safe, and comfortable.
- Employees are essential workers every day.
- Communication has changed on-farm.
- There are fewer on-farm consults.
- Future investments will reduce person-to-person contact.
- Mental health cannot be taken for granted.
Source: Hoard’s Dairyman, August 10, 2020. Link.
INSIGHTS: Note that most of the discussion is people-, process- and principle-centric.