How do Australian and New Zealand farmers stay competitive when the rest of the world is changing faster than ever?
For our guest this week, Richard Green, it starts by accepting that yesterday's thinking will not solve tomorrow's problems.
"It frustrates the hell out of me when I hear us talk about 'We're the best farmers in the world.'" explains Richard. "And we may have been, but that's a moment in time. There's so much change, progress and disruption happening around the world. We're only as good as how we were yesterday, and every day we've got to improve."
Richard's recent travels gave him new insight into where the world and the red meat sector are going. He explains the concept of a hybrid consumer where some people are shopping for experiences and absolute luxury... And then there are the "normal" people who shop at the value end who still want quality, but want as much value within that as possible. And, as Richard explains, the "middle" has been completely hollowed out.
"Commit to volume and efficiency, or commit to a genuine premium value proposition. Half-measures won't cut it." explains Richard. "If you're competing on a commodity, compete hard and be exceptional at it. If you're not, build a differentiated supply chain with genuine partners - offshore, in-market, and at the processing end."
He explains how the South American commodity powerhouses have been doing it well, by scaling their surpluses into global supply chains and manufacturing, and how we could take some lessons from them.
Mark and Richard also cover Cultivate Ventures, the growth fund Richard chairs. Born partly from a goal he set himself, Richard realised money made in the industry wasn't going to flow to the farmers, it was going to flow to where the capital returns- aka the investors.. So they decided they had to invest in these disruptive businesses to ensure farmers got their share of the success.
They finish the conversation discussing the relationship between physical challenge and business mindset. Richard is no stranger to an intense physical challenge. He has run the Kepler, one of New Zealand's great walks (that usually takes 3 days) in a day, and ridden the length of both islands by bike.
"If I'm challenging myself physically, it helps me be more positive about life..." he explains. "It just realises that you are as an individual capable of a lot more, and if you realise that, then it helps you drive your businesses to be capable of a lot more too."
Head Shepherd is brought to you by neXtgen Agri International Limited.
We help livestock farmers get the most out of the genetics they farm with. Get in touch with us if you would like to hear more about how we can help you do what you do best: info@nextgenagri.com.
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Ireland