Falklands : SHOULD WE SELL OFF THE STANLEY DAIRY?
Submitted by Falkland Islands News Network (Juanita Brock) 27.02.2009 (Article Archived on 13.03.2009)
Negative publicity surrounding the funding of Stanley Dairy and the quiet departure of its former managers sparks many questions about future operations on the site.
SHOULD WE SELL OFF THE STANLEY DAIRY?
An Editorial by J. Brock (FINN)
Negative publicity surrounding the funding of Stanley Dairy and the quiet departure of its former managers sparks many questions about future operations on the site. After granting the Reynolds £650,000.00 and refusing to give more, the dairy was left in an appalling state. According to information received, FIDC would like to close the Dairy but EXCO have a different view and want it to remain open.
FINN’s own view is quite different and could offer a way forward that doesn’t include throwing huge amounts of money on the project. It begins with a single, simple idea that expands and diversifies – starting at the beginning instead of at the middle. Clearly giving managers from overseas £650,000.00 to manage an operation that was losing money is starting in the middle – a place where there are no gains – just losses.
A farmer might want to invest in a few milk producing breeds to meet family needs and sell any extra in the form of cream, skimmed milk and butter, etc. He makes a small bit of money that he otherwise would tip out on to the ground or down a drain. That money goes into savings and by the time enough is saved – and if he does his sums right – others would hear of the quality of his product and reasonable price. The Farmer takes the decision to use some money to extend the cow-shed and to purchase another appropriate milking cow. After saving an increasing amount of money the farmer is ready to spend it on a small processing room and/or more efficient milking facilities.
Starting small is a step by step process and if something isn’t making money it is easier for a farmer to take a small loss than it is for a country to take a significant loss when things go wrong. If the farmer believes in his product he will work diligently to come up with a plan to make money on it. Handing out £650,000.00 to managers kills the diligence and we have hard, painful evidence of the result.
FINN is all for Government putting distance between itself and the dairy. However, selling a loss-making concern to good people then pulling the financial rug from under them is not the solution, either.
Have you thought of giving it away to a company or a person with his or her own start-up money and a good business plan?
It’s nice to dream of running a dairy but dreams without substance can quickly become nightmares. Given the right set of circumstances someone could have a modest return on investments made. Whether or not to sell to the Military is irrelevant for a small, well run concern whose profitable market is in Stanley. The bigger projects can come later once the business has enough money to invest in market research and the necessary improvements needed to bring the business up to a different standard.
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