Use of business analysis in beef businesses to direct management practice change for climate adaptation outcomes
Kiri C. Broad A D , Roger J. Sneath B and Timothy M. J. Emery CA Queensland Department of Agriculture and Fisheries, Longreach, Qld 4730, Australia.
B Queensland Department of Agriculture and Fisheries, Toowoomba, Qld 4350, Australia.
C Queensland Department of Agriculture and Fisheries, Roma, Qld 4455, Australia.
D Corresponding author. Email: kiri.broad@daf.qld.gov.au
The Rangeland Journal 38(3) 273-282 https://doi.org/10.1071/RJ15103
Submitted: 24 September 2015 Accepted: 29 February 2016 Published: 13 June 2016
Abstract
Beef businesses in northern Australia are facing increased pressure to be productive and profitable with challenges such as climate variability and poor financial performance over the past decade. Declining terms of trade, limited recent gains in on-farm productivity, low profit margins under current management systems and current climatic conditions will leave little capacity for businesses to absorb climate change-induced losses. In order to generate a whole-of-business focus towards management change, the Climate Clever Beef project in the Maranoa-Balonne region of Queensland trialled the use of business analysis with beef producers to improve financial literacy, provide a greater understanding of current business performance and initiate changes to current management practices. Demonstration properties were engaged and a systematic approach was used to assess current business performance, evaluate impacts of management changes on the business and to trial practices and promote successful outcomes to the wider industry. Focus was concentrated on improving financial literacy skills, understanding the business’ key performance indicators and modifying practices to improve both business productivity and profitability. To best achieve the desired outcomes, several extension models were employed: the ‘group facilitation/empowerment model’, the ‘individual consultant/mentor model’ and the ‘technology development model’. Providing producers with a whole-of-business approach and using business analysis in conjunction with on-farm trials and various extension methods proved to be a successful way to encourage producers in the region to adopt new practices into their business, in the areas of greatest impact. The areas targeted for development within businesses generally led to improvements in animal performance and grazing land management further improving the prospects for climate resilience.
Additional keywords: climate change, extension, productivity, profitability, whole-of-business.
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