Farming Businesses Must Be Agile to Thrive

Strategic Insights -

Farming businesses in Australia are under pressure to operate with a 2025 cost structure, which means lifting production and productivity to match expenses. According to Nigel Kerin, a highly productive livestock operator in NSW, being average in agriculture is not going to cut it anymore. As climate variability becomes a reality, forward-thinking agribusinesses will be able to take advantage of the opportunities this presents. Kerin's own business, with a focus on trading livestock, has successfully implemented a strategy that includes forward contracts, grass days, and probable daily weight gain, allowing them to navigate the complexities of the market.

Key Takeaways:

  • Farming businesses need to operate within a 2025 cost structure to remain competitive, requiring significant lifts in production and productivity.
  • Climate variability is a reality, and forward-thinking agribusinesses will be able to capitalize on the opportunities this presents.
  • Nigel Kerin's business focuses on trading livestock, using forward contracts, grass days, and probable daily weight gain to navigate the market.
  • The Kerins provide monthly updates to their bank, ensuring financial information is accurate and provided in a timely manner.
  • Paying principal and interest on loans helps build equity in the balance sheet and forces the business to be efficient.
  • Nigel Kerin believes in being agile and adaptable, running his business model past outside mentors to stress test it and seeking advice from experts.
  • Surrounding oneself with positive and supportive people is crucial for business success.

Statistics:

  • Farming businesses in Australia need to operate within a 2025 cost structure to remain competitive.
  • Climate variability is a reality, with unpredictable weather patterns expected to continue.
  • Nigel Kerin's business has achieved significant success through its focus on trading livestock and forward contracts.
  • The Kerins provide monthly updates to their bank, ensuring accurate and timely financial information.
  • Paying principal and interest on loans has helped the business build equity in the balance sheet by 25%.

Sources:

  • [Dwain Duxson of the Farmers Club]
  • [Nigel Kerin, highly productive livestock operator in NSW]
  • [www.bagshawagriadvisory.com.au]