Agribusiness: Technology builds resilience - and profitability

Mark Heer, ASB General Manager Rural.

Managing another era of volatility is a big challenge for our dairy industry, and one that requires a high degree of resilience.

One way farmers can build resilience into their business is to have strong partnerships. First it is important for any business to engage early with their bank and accountant around cashflow, taxation planning and working capital facilities.

Often, it's less about money-based solutions, which are short-term, and more about planning and understanding how systems, risk management, governance and financial reporting contribute to a more resilient and ultimately profitable enterprise.

Technology is also helping farmers adapt to change with new farm management and planning tools - crucial when times get tough.

An innovative new partnership is New Zealand company Figured offering a cloud-based livestock management and forecasting tool, designed specifically for farmers.

Working in tandem with Xero, Figured tracks a range of data from livestock movements to milk prices, income and expenses, producing one set of real-time information for the whole farming team - the farmer, accountant, bank and farm consultant.

Figured is a prime example of an innovative partnership, and ASB is proud to be a partner in this collaboration tool that gives farmers greater confidence in forecasting and timely decision-making.

With the right partnerships, volatility can become an opportunity and a chance to make positive and sustainable changes.

Tough times certainly force businesses to refocus, and farmers are no exception.

For farmers across the country, dairy price volatility is forcing clarity around purpose, strategy and business model.

With the right partnerships, volatility can become an opportunity and a chance to make positive and sustainable changes to rural business models and strategies.

New Zealand farmers have a strong track-record of showing determination. Those who continue to adapt and strengthen their platforms will be strongly positioned to capture value from the long-term growth story on New Zealand's front doorstep.

Mark Heer is ASB General Manager Rural.