A new financial management program being delivered to Limestone Coast livestock producers is showing them how to be more profitable.
A report commissioned by the Limestone Coast Red Meat Cluster showed the long-term average return on assets for livestock producers in the region was just 1.7 per cent a year. But a small percentage of managers were achieving significantly better business performance.
The four one-day workshops, being delivered by Pro Advice, teach participants about key profit drivers and how increasing turnover, reducing costs and improving gross margins can lift returns.
The inaugural ‘Building a Better Red Meat Business By Your Design’ course has more than 20 participants.
LCRMC coordinator Ann Aldersey said the report using ABARES data showed “getting better was the first step rather than getting bigger”. Every step up in management brought a 2-3pc ROA, equating to more than expanded production.
“The key message is the way you structure your business has a great impact on how profitable it is,” she said. “This will look different for every business but it is designing the one right for you.”
She said the course had been well received with participants also sharing their business knowledge.
“It is always a good time to improve your skills but it is a good time with livestock prices strong to realise these gains,” she said.
LCRMC chair Peter Stock said the red meat industry was the second highest economic contributor to the region behind forestry, so even a small increase in profitability could make the region more prosperous.
“There are 64,000 people in our region and 3694 people are fully employed producing red meat without considering the secondary industries which feed off it,” he said.
Mr Stock thanked the Naracoorte Lucindale Council for hosting the cluster for the past two years and said its focus going forward would be facilitating increased industry influence, delivering on research projects and improving the skills of red meat producers.
A second course will be held later in the year for mixed cropping and livestock enterprises in the region.
- Details: limestonecoastred meat.com.au