Proven strategies for Agribusiness success.
Australian agribusinesses are used to dealing with unique challenges. From unpredictable weather to volatile markets, the agribusiness community in Australia has weathered it all.
Now, with inflation adding pressure, it's time to explore strategies that will help you not only survive but thrive. In this article, we'll discuss practical strategies tailored for Aussie farmers, empowering you to build resilience against inflationary pressures.
The agribusiness sector has been doing well, benefiting from higher commodity prices and a low-tax environment. Unfortunately, the end of the instant asset write-off brings a higher tax burden while equipment costs rise. Rising interest rates have also led to sharp increases in debt repayments for land and equipment purchases. All of which makes it harder to grow your agribusiness and impacts succession planning.
Let’s look at the biggest challenges in agribusiness – and what you can do about it:
Nurturing Our Greatest Asset: Skilled Labour
Labour shortages hit everyone hard, especially in regions with mining booms and soaring wages.
To attract and retain top talent:
- Go the extra mile by offering bonuses, extended leave, and valuable training opportunities.
- Be flexible with working arrangements.
Investing in technology for efficiency
Technology has always been a great way to do more work with fewer people.
Here's what you can do:
- Use digital tools to streamline operations.
- Automate repetitive tasks to free up time for important responsibilities.
Financial Smarts for Long-Term Prosperity
Understanding your finances is crucial for making informed decisions.
Consider these tips:
- Keep track of your cash flow.
- Leverage the increase in the instant asset write-off threshold to $20,0000 from 1 July 2023 until 30 June 2024.
- Set appropriate prices for your goods and services, considering supply changes and increased costs.
Sustainable Farming for a Bright Future
Looking after the land we rely on to ensure future success is only common sense.
Take these steps:
- Adopt renewable energy and sustainable farming practices.
- Explore ways to offset emissions through sustainable projects like carbon farming.
- Look into green loans or financing options for sustainability initiatives.
Implementing a Pricing Strategy
Setting prices during inflation is challenging but necessary. Remember that customers expect price increases during inflation. By setting fair prices, you can keep your business running and maintain customer loyalty.
Strike the right balance by:
- Developing a pricing strategy aligned with market conditions and customer expectations.
- Communicate price changes transparently, highlighting the value provided and challenges faced.
Aussie farmers have a proud legacy of resilience and adaptability. With tailored strategies, you thrive amidst inflation. By attracting skilled labour, harnessing technology, managing finances wisely, practicing sustainability and implementing strategic pricing, you can secure the future of your agribusiness while nurturing our land and communities.
FOR MORE INFORMATION
To find out more get in touch with your local RSM office today.