Building a better working world for Australian agribusiness and farming Tony Johnson ABARES Outlook 2015 national conference 3 March 2015
Page 2 Building a better working world for Australian agribusiness and farming
EY: Building a better working world
Building a better working world for Australian agribusiness and farming Tony Johnson ABARES Outlook 2015 national conference 3 March 2015
About EY
Exceptional client service across our four service lines
Assurance Tax Advisory Transaction Advisory Services
► We are passionate about creating a vibrant future for the people and business involved in the production and sale of food and fibre.
► Our approach combines innovative thinking and an understanding of issues. ► We draw on our global capability, vast resources and our diverse network of clients
Page 4 Building a better working world for Australian agribusiness and farming
Page 5 Building a better working world for Australian agribusiness and farming Page 5 Building a better working world for Australian agribusiness and farming
Key themes
► Addressing debt levels ► Key things that governments can do ► Insights
Page 6 Building a better working world for Australian agribusiness and farming
Opening up investment channels
Co-operatives Large private companies
ASX listed companies
Investment Banks
Commercial Banks
Super funds
Equity funds
Private equity
Debt funds
Investment Banks
Commercial advisory and capital raising
Proposal to enable increased investment to smaller/mid-sized farming operators…
Invest
or Ma
rket
Individual Farmers
Well established investment channel
Page 7 Building a better working world for Australian agribusiness and farming
Addressing the rural debt problem
Bank
Bank
Bank
Bank
Bank Farmers stay on the land
Government Authority provides oversight
Investor Funded SPV Owns and Manages the Loan Portfolio
$
$
Proposal to raise liquidity to enable stressed farming loans to be restructured…
Loans provided on commercial terms
Restructure of loan
Page 8 Building a better working world for Australian agribusiness and farming
The importance of Government
► Regulatory activity ► Trade agreements ► Investment in science ► Infrastructure ► Biosecurity
Governments have a critical role in enabling success of individuals and businesses
Page 9 Building a better working world for Australian agribusiness and farming
Business insights
of companies are more confident in their plans to increase workforce numbers. 52% of companies expect to increase their deal
pipeline in the next 12 month.
69%
Page 10 Building a better working world for Australian agribusiness and farming
Business Insights
Focus on Growth Cautious about slowing growth of emerging markets
Targeting new markets
Page 11 Building a better working world for Australian agribusiness and farming
Australian agribusiness insights
Major opportunities identified
Challenges
Demand from new and emerging foreign markets
Taking advantage of FTAs
Increased product differentiation
Supply chain optimisation
Increasing international competition
Rising input costs, including cost of land
National infrastructure network
Page 12 Building a better working world for Australian agribusiness and farming
Insights into our major competitive advantages
Quality
52%
Australian brand Quarantine measures
60% 60%
Page 13 Building a better working world for Australian agribusiness and farming
Business insights on policy
Upgrades to national infrastructure
Policy changes to promote agribusiness growth
Building of relationships Free trade Increased government funding
48% 48%
64%
54%
EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organisation, please visit ey.com.
Improving business performance while managing risk is an increasingly complex business challenge. Whether your focus is on broad business transformation or, more specifically, on achieving growth or optimising or protecting your business, having the right advisors on your side can make all the difference. Our 30,000 advisory professionals form one of the broadest global advisory networks of any professional organisation, delivering seasoned multidisciplinary teams that work with our clients to deliver a powerful and exceptional client service. We use proven, integrated methodologies to help you solve your most challenging business problems, deliver a strong performance in complex market conditions and build sustainable stakeholder confidence for the longer term. We understand that you need services that are adapted to your industry issues, so we bring our broad sector experience and deep subject matter knowledge to bear in a proactive and objective way. Above all, we are committed to measuring the gains and identifying where your strategy and change initiatives are delivering the value your business needs.
© 2015 Ernst & Young Australia All Rights Reserved.
S1527545 ED None
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
ey.com