“the underlying long-term profitability of the majority of beef businesses is alarmingly low and simple,
cost-effective action is urgently needed.”
The Australian Beef Industry can be effectively broken up into two groups, the Best and the Rest.
The Best are generating healthy profits that, after a reasonable wage has been paid to the owners working in the business, are able to pay interest and have funds left over to repay debt, fund expension, fund retirement, provision for succession and future downturns.
The Rest are not generating sufficient returns to be able to pay both their owners a reasonable wage and pay interest. There are no, or very limited, funds available for depbt, expansion, retirement or provisioning.
The Best comprise only 25% of the industry, but they manage close to half the herd and land area.
The Australian Beef Report is co-authored by Phil Holmes and Ian Mclean, both are experienced beef industry specialists. Together they have analysed the data, and provide you with evidence-based recommendations on how to improve your business performance. As well as the publication, you will get exclusive access to a range of resources and decision support tools for private use.
Australian Beef Report – Identifying the barriers to profitable beef production
About the Authors
PHIL HOLMES B.Sc. (Vet), B.V.Sc., M.A.C.V.Sc., F.Fin., Ph.D.
Phil is the principal of Holmes & Company, a NSW based firm providing professional advice to family and corporate owned farm businesses in all states of Australia. He started his career in sheep, but over time, has become more involved with beef and now has a good understanding of how sustainable beef production works nationally. Phil’s special interests are commercial beef, sheep and wool production, agricultural sustainability, finance and sensible wealth creation through investing. He is a hard line disciple of the ‘evidence-based’ school of thinking and strives to have that approach dominate debate on Australian agricultural issues.
Phil was one of the pioneers of agricultural benchmarking within Australia and has contributed significantly to the understanding of profitable pastoral production across Australia. Whilst the majority of his professional experience is in southern Australia, his PhD examined the sustainability of beef production in the arid rangelands. The fundamental research question was ‘Is it possible to concurrently achieve financial and environmental sustainability in the arid rangelands as a beef producer’?
IAN McLEAN Assoc. Deg. Comm., M.A.I.C.D., M.B.A
Ian is the principal of Bush AgriBusiness, a QLD based firm providing professional advice to family and corporate owned pastoral businesses in northern Australia. He was raised on a property near Mitchell (QLD) and after graduation spent time in the Northern Territory in a number of professional roles. Ian’s special interest is the overall performance of beef businesses from family-owned through to corporate scale. He is a ‘sustainability’ advocate across the board and is passionate about the preservation of rural landscapes in the pursuit of profitable grazing animal production.
Ian helped develop the current MLA BusinessEDGE course and has since delivered it to over 400 northern beef producers, in an unsubsidised environment.
The most important point about the authors is that both their businesses are primarily based on private billings to clients for professional advice; with their businesses living or dying on that. They are completely independent and are therefore free to take the available evidence and call it as they see it, without having to answer to anyone except themselves, and their clients.
The authors have undertaken this report entirely on their own initiative, and at their own risk. No government or industry body commissioned this report, or underwrote the time and expenditure associated with preparing, publishing and marketing it. This approach was chosen for two reasons, firstly they believe that there is a market for quality independent analysis and insight into the performance of the beef industry in Australia, that calls it as it is. Secondly, as an independent publication they are able to identify and address the issues, supported by evidence, in a way that may be politically unpalatable in a government or industry body publication.