Producers face bumpy road to recovery

Primary producers to prepare for the bumpy road to recovery – leading agricultural banker

While the improving global economy is expected to have a positive impact on most agricultural sectors, primary producers will need to manage their operations in a potentially volatile marketplace, according to Rabobank‘s group executive country banking Neil Dobbin.

Speaking at the opening of applications for this year‘s Rabobank Executive Development Program, Mr Dobbin said while the global economy is in recovery, it is expected to be a bumpy road, which will bring with it a period of commodity price volatility.

A key focus for this year‘s Rabobank Executive Development Program (EDP) will be to equip producers with a range of commercial management tools to help them cope with the increasingly unpredictable nature of agriculture.

Leading producers understand, more than most, that they need to implement strategies to drive their business forward in this complex and competitive environment, Mr Dobbin said.

Now in its 11th year, the Rabobank Executive Development Program brings together leading farmers from across New Zealand and Australia and from a range of agricultural sectors to develop and enhance their business management skills.

Going forward, this commodity price volatility is expected to lead to opportunities and challenges for agriculture in New Zealand and Australia. When it comes to taking advantage of these opportunities, it is important that producers are up-to-date with all the current practices, whether it be for markets, finances, business strategy or human resources, Mr Dobbin said.

EDP manager Skye Ward says that this year, more than ever, the program is focused on ensuring that attendees are exposed to the very latest in business management theories—as they apply to agriculture—that can assist them with taking their business to the next level.

The producers that attend the EDP are at the forefront of their industries and already have extensive management experience, so we have to ensure that the program exposes them to new information and innovative skills that most people would not have access to, she says.

With the EDP likened to a mini MBA but focussed directly at agricultural producers, it is ideal for men and women who want to enhance their farm business performance, but are unable to devote months on end to study.

The program runs across two intensive week-long residential modules held approximately ten months apart and introduces participants to the latest practices in business management, leadership, strategy, finance, human resources, value chain management and marketing, and how these can be directly applied to their farm businesses.

Central Otago dairy producers Grant and Gaynor Scott, credit their exposure to the program for giving them the confidence to back themselves‘ in their business decisions.

Grant graduated from the EDP in 2006 before encouraging Gaynor to also attend the program. Gaynor says that while she is only halfway through – due to graduate this year – attending has really put them on the same page.

When Grant finished the program he came back very invigorated and enthused for the future of our business, now that I am doing the EDP as well we have a shared understanding of what it will take to ensure our business is ready to meet future challenges and to continue to grow, she says.

Grant agrees and says that the chance to study alongside some of the top New Zealand and Australian producers is a very unique position to be in.

For me it was probably the first opportunity I‘ve had to compare myself to other agricultural producers. On farm, you are usually so busy doing what needs to be done that it is hard to find a benchmarking opportunity as good as this one, he says.

More than anything I believe it has given both Gaynor and me a bit of reassurance that we are on the right track and that the decisions we have been making have been on target. It also forced us to look at where our sector sits on a global scale and how that might change in the future.

Gaynor says that while she would encourage couples to attend the EDP, she believes they gained more from attending separately.

I believe that if I‘d attended with Grant I wouldn‘t have got as much out of the program as I did, also you mix with the entire group and are not able to bounce off your partner, which I think helps you to grow both personally and professionally, she says.

One of the areas that I found gave me a lot of insight was identifying the Myers-Briggs personality traits, it really gave me an understanding of the different personalities that I deal with in our business and how by understanding them I can more effectively communicate with them, she says.

Mr Dobbin says Gaynor and Grant Scott are a great example of producers who have used the EDP to look take an overall view of how their business compares and where they sit on a national and international scale. Media Release March 1, 2010 3

Just taking that little bit of time out of the day-to-day running of the business to look at the bigger picture and the direction you would like to take, can have a huge impact on producers, sometimes in ways they did not expect, he says.

The face of agriculture is rapidly changing and attending the Executive Development Program is one way to ensure that you remain in front of that change, and able to take advantage of the effect it might have on your business.

Applications for Rabobank‘s 2010 Executive Development Program are open until 28 May 2010 and only 36 applicants will be accepted from across a range of commodities and geographical locations in Australia and New Zealand. The first module runs from 22-27 August in Sydney, with the second module taking place in July of next year.

ENDS

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