The Farmers Club Newsletter

The “Club Notes” for Tuesday, the 5th of March, 2024.

By Dwain Duxson

What are Machinery cells?

We interviewed former Bulla Burra collaborative Farmer John Gladigau at our FarmTender2024 event last Friday, who gave us an insight into how their business ticked and some of the principles they used. One that pricked my ears was how they thought of Machinery in what they called cells. I think they broke it up into 2000ha Machinery cells where they would need a certain capacity Header, Chaser Bin, Truck and all the other Gear required to finish Harvest in 5 or 6 weeks. Similar with Cropping, say at 45ft Airseeder Bar, a Tractor to pull it, etc etc. To warrant another Machinery cell, they would have to get another 2000ha to Crop, which they did through acquisitions and leases. I don't think I have heard of this kind of formula before, but it makes perfect sense when we have so much money tied up. Machinery. I guess a related model would be labour units to DSEs in Livestock operation, which I have heard about before. Have you ever thought about Machinery in cells before? Reply to [email protected]

Kia is getting a Ute

Some of you would have seen the new "Kia is getting a Ute" doing the rounds on social media. They have gathered together some of the biggest names in Australia Sport to do the ad and tease us as to what the brand name of the new Ute is going to be. Rather than me explain it, you can watch it here. I think I might have hired a Kia as a hire car once, but other than that, I have never had much to do with the brand. I have noticed, though, how they have positioned themselves in the market to become a brand that people are now associated with. Getting a Ute is an extension of that. And marketing like this, where you make an interesting ad and combine it with a little bit of a tease aspect (with the brand name), is very clever in my book. Well done to them, and it will be interesting to see what the end product is like. My tip for the name is the KIA Buddy. What's your tip? Reply to [email protected]

Surveys can be powerful

Farmers are fighting alot of headwinds with the anti-Farming fraternity alive and kicking. But we have everyday and local issues to deal with, like overblown rate bills, poor mobile phone service, less than ideal roads, insurance costs, Machinery costs, and the list goes on. We have partnered up with a new organisation called Ag Surveys, where we distribute these surveys so they can gather data that goes to the root cause and take the information to the companies or organisations who can then make changes on what people's opinions are. If someone wasn't happy with one of the aspects of your business, wouldn't you want to know? See below some interesting stats and comments (1st pic) that were gleaned from the Mobile phone survey, which is still open. They also have a short, sharp one on Field Days, which you can contribute to here. Reply to [email protected].a

Your replies

Below are snippets from some of the replies you sent in. All quotes will remain nameless. See a few current ones below:

• “So the corporate giants are using their suppliers who are small business owners as their working capital facilities. I am so glad that my Farming operation only sells to legitimate buyers. As the saying goes, “Deal with people who know what it’s like to have no money, that way you always get paid”. - In reply to Mike’s “big two” Supermarket analysis in last Friday’s Farm Tender Daily. You can read it here.

• “I’m impressed with Mike’s data on Supermarkets. It would have been good for 4 corners to have shown this info during there program on the big two”. - More on Mike’s Supermarket story. 

• “Thanks for a great event yesterday”. - An attendee at FarmTender2024 who sent this through on Saturday.

• “I found your short article most simple and enlightening. Much of Coles and Woolies’ assets are not theirs eg distribution centres, storage on wheels, eg Trucks where goods are in transit from distribution centers, to retail outlets in towns and cities. So thank you very much for sharing your thoughts and analysis with us readers” - Another Supermarket reply.

• “I would have thought such terms of trade would have been regarded as totally unacceptable in any market today. (Proceeds from cattle sales currently deposited within 7 days of sale). Suppliers must suffer an awful ongoing impost in attempting to balance such sluggish income against monthly outgoing costs. It begs the question as to why this is permitted to continue”. - More on the Supermarkets.

• “I am really looking forward to next year’s conference! I really like the Q&A type of format”. - Another happy attendee at FarmTender2024.

• “To me it’s a bit like a Mitsubishi Ute. If you can’t afford a good workhorse, buy that”. - One Farmer making a passing comment.

• “Hi Dwain, I did see the post you put up about Coles and Woolies payment terms. That was really interesting. I have a commerce degree and do understand this stuff. Businesses like Coles and Woolies preserve a lot of cash by using someone else’s (farmers). They also make or lose money by inventory turnover. The working capital cycle is a combination of inventory turnover days, delaying creditors, and speeding up debtors. I doubt that Coles and Woolies are waiting for 60 days from people who owe them money”…… - More on the Supermarket story.

End of message.

Dwain Duxson
0427 011 900

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