Ensure profit with Productivity & Profitability series business management webinar

Get on top of your business management with this webinar on risk assessment, inflation and depressed commodity prices.

Agrista Australia is hosting a webinar as part of MLA’s Productivity & Profitability series.

To be held on 13 December 2023, the webinar aims to deliver practical business advice on driving margin during times of low commodity prices.

Agrista’s Director John Francis has weighed in on what the webinar will cover, here’s what he had to say.

“Coming out of 2022’s very buoyant livestock prices and good seasonal conditions, we observed that many producers had lost focus on business management,” John said.

“During good years, it’s quite easy to take your eye off cost control. However, when things then decline in both business and seasonal environments, you’re going to be left with a business that has a high-cost structure but doesn’t deliver any margin.”

Why it’s important

According to John, many producers will have seen a 60-70% reduction in prices during 2023.

“Based on the extent to which commodity prices have fallen, a business that was generating $1million worth of operating profit in 2021 will now be only generating $100,000,” he said.

“For producers who have debt, the impact doesn’t stop at operating profits.

“In the last year, interest rates have more than doubled and those interest costs are deducted from that initial operating profit, further reducing business cash availability.”

“Now, as we move into the new year, it’s a great time to complete an annual assessment of your business to understand where the opportunities for improvement are.”

“This webinar aims to support producers in improving their productive system so that it delivers a low cost of production irrespective of commodity prices.”

What it will cover

John’s webinar will focus on:

• business risk assessment and management
• rising interest rates
• falling livestock prices
• important drivers of success in commodity production.

“As a producer, you have very little discretion on changing prices and interest rates. However, what you do have discretion over is your cost of production,” John said.

“Knowing your operating expenses, production levels and interest costs, and understanding their impact on cash flow is essential to staying focused during tough economic times.”

While John’s webinar will hold a lot of emphasis on understanding the economic climate and your spending, it will also allow for skill building in:

• understanding economic and seasonal risks when making investment decisions
• driving low-cost production
• smart investing to generate higher profitability.

Find out more about MLA’s Productivity & Profitability series and register for Agrista’s webinar here.