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As we settle into 2023, agribusiness leaders must continue to focus on business resilience and growth opportunities.
Whilst many of the measures implemented to combat the challenges of COVID-19 are now embedded, agribusinesses must plan for success in a period where advancing technologies and growing economic uncertainty have converged to create a landscape that is both unpredictable and ripe for disruption.
This will require agribusinesses to maintain their innate attributes of flexibility and nimbleness combined with customer centricity whilst maximising the use of business data, workforce efficiency, and availability of cash boost funding.
MAXIMISE THE USE OF BUSINESS DATA
Agribusinesses collect a wealth of data; unfortunately, this is often housed in non-integrated systems and applications. Converging this data to create a “single source of truth” will unlock value in how you assess your business and its future by seeing the impacts of decisions and being alerted to “red flags” in real-time.
Consider embedding data analytics in your strategic planning and day-to-day operations and empowering people within different areas of your business to become “data champions” to help better use available data and inform future strategy.
FOCUS ON WORKFORCE EFFICIENCY
Agribusiness continues to be more significantly impacted than others by the current skills shortage. Whilst increases in immigration are on the way, more immediately business managers must find innovative ways to attract and engage with employees or navigate how to get by with fewer employees.
Seek to understand your business’s point of difference and why customers choose you – is it price, product, or level of service? This will enable you to double down and dedicate available resources to those activities that really matter.
Of course, automation and artificial intelligence can manage many routine tasks, freeing up staff to focus on higher-value areas. With the rapid growth in AgTech solutions, leaders must maintain a keen focus on innovation and emerging technology solutions.
CONSIDER CASH BOOST FUNDING
Access to capital remains a key challenge for many agribusinesses. Against the backdrop of increasing interest rates and broader economic volatility, leaders will need to carefully balance the funding of operational and capital expenditure cash flow needs through borrowings and alternative cash boost measures. A broad range of government incentives are available to provide valuable cash injections and other benefits.
Many Australian agribusinesses are innovative, and Research and Development (R&D) Tax incentives are available to any business that invests $20,000 or more in eligible R&D activities.
Current “temporary full expensing” measures, available until 30 June 2023, may allow agribusiness owners to claim a deduction for the full cost of eligible assets.
In addition to tax incentives, there are a host of government grants which are designed to boost innovation and investment; from regional tourism, clean energy, job creation to food security, and food and beverage manufacturing.
Agribusinesses should ensure government incentives are high on the agenda when meeting with their advisors.
For more information
To find out more on how you can prepare your agribusiness for 2023, reach out to your local RSM office today.
