Business Mentoring for the Australian Meat and Livestock Sector

Summary

The project’s purpose was to address the key findings of MLA’s Northern Beef Situation Analysis 2013, Southern Beef Situation Analysis and Prime Lamb Situation Analysis 2013. Both analyses identified industry profitability challenges related to business skills, financial management, climate risk and on-farm business management (defined as eight economic sustainability criteria).

It was concluded that producers, as well as their advisers, would benefit from professional development in business management (as opposed to production) skill development. The Agri-Business Development Institute (ABDI) customised and tailored its agribusiness management (professional development) programs to support increased adoption of better business management practices. These programs use the ABDI 12 Pillars of Business Best Practice as a framework to support adoption of improved profitability, sustainability and risk management (and mitigation) and include 1:1 coaching/mentoring.

Objectives

The objectives of the project were to develop and deliver a suite of business management programs (specifically the 12-month ABDI CEO Mentoring Program and a Lender Ready Program), plus communicate elements of business best practice, to support adoption by producers (and advisers) of more professional business management practices.

Key findings

The project demonstrated success in participants improving their knowledge of, attitude towards, level of skills and aspirations/intentions to change their overall business management practices to address the eight economic sustainability criteria. Data reveals specific practice change in terms of varied changes to 12 defined areas of business management and overall profitability. Tracking enterprise profitability data was excluded from the project scope. Livestock numbers directly influenced through program participants were estimated as 251,270 head of cattle and 66,000 head of sheep.

Benefits to industry

Change in mindset of program participants has resulted in a majority expanding their businesses in terms of increased numbers of livestock, hectares of land, improved meat quality, higher value customers, improved profitability and involvement elsewhere in the value chain, while addressing the eight economic sustainability criteria.

Project data reveals changes made by participants are aligned with future industry direction (Red Meat 2030 and MLA Strategic Plan 2025) and a changing marketplace.

MLA action

These business programs could support continued industry adjustment to the modern day environment.

Future research

The business management programs could support continued industry adjustment and be expanded by:
• research in three key areas of climate variability, social licence to operate and sustainability – to reflect expanded lender risk assessments
• applying findings to update the program suite
• expanded Australia wide program delivery through accredited deliverers
• development of an MLA Business Hub (one-stop shop) to support SME business owners access professional development support.