Fresh off the release of his 2023 Australian Beef Report, Ian McLean sits down to talk about what distinguishes the top cattle grazing businesses and the specific KPIs they concentrate on to achieve exceptional results.
The founder of Toowoomba-based Bush Agribusiness, Mr McLean advises various agricultural businesses from family-owned farms to pastoral companies.
Emphasising the importance of KPIs in managing agricultural enterprises, in this fascinating chat he shares valuable insights on how KPIs can drive productivity, accountability, and profitability in the farming business.
"It's a cliché, but it's true: you can't manage what you don't measure," Mr McLean says. He stresses the significance of having robust data and systems in place to track key aspects of agricultural operations. While data collection is common, McLean points out that many farmers fail to collate and utilise the information effectively. "Just having simple systems to collect important data is a big part of it," he adds.
He talks about the importance of good management saying "the skill and attitude of the manager have a big impact on business performance." Skilled managers are hungry for information, possess critical thinking skills, and have a "good bullshit detector," allowing them to focus on what's truly important, he says.
He breaks down the key KPIs for a successful business including;
Herd productivity, and the importance of understanding kilos produced and using software or benchmarking to track progress over time.
Expenditure management and the importance of focusing on targeted expenditure that generates a clear return on investment.
Operating scale, where he suggests producers assess whether scale is a constraint and, if so, explore strategies such as leasing or joint ventures to overcome it.
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