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Integrity of information essential in current market

April CEO Report

Mark MortonTo mitigate the risks associated with a volatile market, producers need robust and reliable processes to provide confidence to buyers.

Prices fluctuate and markets are demanding animals that fit ever increasing selection criteria. Buyers expect each animal they purchase will have the genetic capacity to meet their market expectations.

Buyers need more than just evidence for an animal’s genetic makeup. They want to have confidence in the animals you produce and the veracity of the information provided.

Our customers have said it best. In this month’s newsletter, Luci Rafferty told us that “integrity of data has become critical in the beef industry”. This was echoed last month by Chantal Winter when she said:

“If you’re not collecting data and tracking your animals, I can’t see how you can get ahead … Because of the fine margins, you’ve got to be choosing those animals that perform otherwise the risk is just too high.”

As prices come under pressure, feedlots and other buyers face increased risks when taking on animals on longer-fed programs.

If they are going to make that commitment, buyers need to have confidence that the animals they purchase will meet their expectations and provide a return on their investment.

There seems to be an expectation amongst producers that if you tick all the boxes, you will attract market confidence. Buyer behaviour supports the statement that unless confidence is created, sellers may struggle to place their product.

Our customers have a desire to accelerate their livestock business. Being adaptable to the market has always played a role in Australian agriculture but the implications and the risk involved is more significant now.

Our customers appreciate that risk is changing and evolving and that there is an emergence of volatility we haven’t seen previously. One of the requirements to manage volatility is intelligence. Through DNA and genomics, that intelligence is becoming available.

Our customers want to meet market expectation and they want to manage both risk and volatility. Both the Winters and the Raffertys have told us that the information they record in our platform provides confidence to buyers and rewards to producers.

Practical Systems isn’t a magical solution. It can’t create animals you don’t have or record information for you. However, it does simplify the process of recording, storing, reporting, and analysing information about individual animals or business processes to provide both producers and buyers with the intelligence they need to manage risk and volatility.