Dynamic Business Planning in Wakool
Dynamic Business Planning in Wakool
Building our Future -
LLCI018-015
The issue
The water reform process has added more volatility and risk to the many other drivers that are impacting farm businesses. The structural changes have led to negative socio-economic outcomes. Through community engagement processes, WMLIG determined that businesses needed information to manage increased risk, realise opportunities and make more informed and flexible planning decisions.
The solution
An event was created in response to increased business challenges and sixty seven people attended an event in Wakool themed Dynamic Business Planning. Two guest speakers attended; Robert Hermann – Livestock & Wool Market Analyst at Mercado and Phillip Townsend – Senior Economist for the Murray Darling Basin Authority.
The impact
Combing the skills and experience of the two presenters gave people the tools to formulate flexible planning strategies that make the most of water price variability and market trends. Robert Hermann reported that there was likely to be a continued boom in livestock profitability – especially in terms of sheep. Sheep meat consumption would increase, coupled by a reduced global supply. There are no wool stockpiles globally, meaning that the market will be actively trading for this resource. The challenge for the sheep industry is the decline in stock numbers due to more farmland being dedicated to cropping.
Philip Townsend followed with figures on the socio-economic impacts of the Murray Darling Basin Plan implementation, and changes to the water market. The data showed that there would be more variability in the water market and that irrigation businesses will have to build in more adaptable systems.
(Community profile evaluations indicated Wakool was particularly impacted during this time with the wealth category falling from wealth decile 5 to decile 2, leading to diminished capacity for adaption and change in response to their circumstances.)
Key facts
- Since 2001, the Wakool Community Profile data indicates a;
- Population decrease of 45.6%
- Workforce reduction of 53.7%
- Government services reduction of 35.1%