The banker wants to review your business, what has happened to it and why since you last met, Vincent told reporters during a pork checkoff-sponsored teleconference. Producers should also have business plans and be prepared to discuss them along with contingency plans. Vincent also said producers should not hesitate in using outside resources if they are experiencing some difficulty in their operations or are contemplating a significant change. Producers should keep in mind that records are best used for management and decision making first. Review of an operation's performance over time, such as a four to five year period, is important regardless of the current cash hog market, according to Vincent.
Lenders use trend analysis to review a request for new or existing credit.
Trend analysis focuses on certain production factors, such as sow productivity, throughput as it relates to facilities, mortality, feed conversion, and carcass performance. Financial trend analysis typically includes such things as profitability, return on assets, return on equity, leverage, liquidity which is typically defined as working capital and trends in cash flow performance. Subscribers to the DTN service who have terminals capable of receiving audio may access the program and ask questions of their own. Pork producers will also be offered helpful information on working capital and risk management through a one-day meeting to be held in four locations this December. The National Pork Producers Council and participating state pork producer associations are coordinating the checkoff-funded sessions.