2026 Draft Budget
The first chart shows the draft 2026 budget with comparisons to 2025, with the budget line items as you are accustomed to seeing. The bottom chart is a summary that groups similarly focused areas. The key assumptions that went into building this plan are: • 2025 milk production finishes at +1% • 2025 carry-over will be $2.3 million
• 2026 milk production down -2% • Cash reserve target is $1 million
With those assumptions, it gives us a total 2026 budget of $44.35 million, a reduction from 2025 of ($3.15) million, or -7%. The reduction is so large because the “COVID surplus” is depleted.
As you can see, especially in the summary chart at the bottom, the majority of the $3 million reduction is coming from advertising. The next largest reduction is international, however last year’s international budget was increased by $900,000, so there is still a significant increase versus two years ago. The G&A increase includes $143,000 “on hold” for an initiative that we’ll discuss at the board meeting. The remainder of the G&A increase of $82,000 is due to cost of living adjustments, insurance and rent increases.
We will go into much more detail during the board meeting, both on revenue and budget by line item.
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