Xero Farming in the Cloud presentation from Xerocon NZ 2014. Hosted by Xero NZ Sales and Product Lead Ben Richmond and featuring Xero add-on partners KPMG, Figured on Farm, LIC and Receipt Bank.
Xero is beautiful online accounting software that connects small businesses and their accountants together in the cloud.
12. Ian Proudfoot!
Global Agribusiness Leader
February 2014!
kpmg.com/nz
THE BIG PICTURE
CAPTURING NEW ZEALAND’S
PRIMARY OPPORTUNITY"
"
XeroCon Auckland!
20 February 2014
13. THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production
systems
Natural"
environment
Economic
and political
environment
Market"
developments
14. Population – growth and change: Percentage of Population Residing in Urban
Areas
Source: United Nations Department of Economic and Social Affairs Population Division; Percentage of Population Residing in Urban Areas (1950 to 2050); October 2012
ECONOMIC AND POLITICAL ENVIRONMENT
15. Source: OECD data reported by KPMG Australia in publication “Expanding Horizons: Agribusiness in Australia 2011/12”
Population – growth and change: Asia Pacific"
ECONOMIC AND POLITICAL ENVIRONMENT
16. Source: OECD iLibrary
Government focus and intervention: Producer support payments as a
% of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
17. Source: Trucost 2012 for KPMG Report “Expected the Unexpected: Building business value in a changing world.”
6
No consensus and sustainability
NATURAL ENVIRONMENT
18. Source: ANZ Insight: Greener Pastures: The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ – October 2012
Global water scarcity: Million per capita
NATURAL ENVIRONMENT
19. MARKET DEVELOPMENTS
Demand for non-food agricultural products:
Source: UN Food and Agriculture Organisation: FAO Working Paper “Mapping Supply and Demand for Animal Sourced Foods
Note that poultry increase for India amounts to 577% per capita
Growth in per capita demand for livestock proteins between 2000 and 2030 (%increase in kg/person)
20. Genetics - human, animal and plant
Above Source: Federated Farmers / Rabobank Farm Employee Remuneration Survey 2012, Total Package Value for selected farm roles comparison to average salary and wages for
graduate qualified employees of $1,049 per week per Statistics NZ June 2012 NZ Income Survey.
Farm employee
remuneration in
comparison to
average graduate
salary in
New Zealand
PRODUCTION SYSTEMS
21. !21
Water storage !
and irrigation
Transportation!
and supply
chain
Fast
communications
Education
and social!
infrastructure
Infrastructure limitations
PRODUCTION SYSTEMS
22. Source: KPMG International – Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operative"
information
Extension / Pest
identificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL / CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution: Type of IT interventions in agriculture
PRODUCTION SYSTEMS
Financial Reporting
News feeds
Production
systems
23. THE KEY RISKS FACING NZ FARMING BUSINESSES....
COMMODITY PRICE
VOLATILITY
BREACH OF
CONSUMER TRUST
SUPPLY CHAIN
FAILURES
FX / INTEREST
RATE MOVEMENTS
WEATHER EVENTS
AND SHOCKS
BIOSECURITY
INCURSION
REVOCATION
OF LICENSE
TO FARM
COMPETITOR
ACTIVITIES
43. … to produce Bull Calves from which the
Progeny Test (SPS) team will be selected.
NationalHerd(cowsperBW$)
0
4,500
9,000
13,500
18,000
Breeding Worth ($)
-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd
Bull Calves
A·B·
BW based on parent
average
To(produce(bull(calves(which(we((
put(through(a(progeny(test(program(
LIC Key Accounts
44. Four years later, once the SPS bulls become Proven Bulls …
NationalHerd(cowsperBW$)
0
4,500
9,000
13,500
18,000
Breeding Worth ($)
-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd
(four years earlier) Bull Calves
Proven Bulls
A·B·
Four(years(later,(we(test(the$
daughters$of(these(bulls
LIC Key Accounts
45. … we market the best as PREMIER SIRES
(to be mated over the National Herd).
NationalHerd(cowsperBW$)
0
4,500
9,000
13,500
18,000
Breeding Worth ($)
-60 -30 0 30 60 90 120 150 180 210 240 270 300
Proven Bulls
PREMIER SIRES
National Herd
(four years earlier)
And(select(the(next(generation(of(elite(sires(
(to-be-used-over-the-national-herd)
LIC Key Accounts