Rural and agribusiness
Agriculture embodies a number of different sectors, all of which are at different cycles.
The sustained dry periods across Australia has impacted on the supply of many commodities in the last three years and as a result, many agribusiness industries have seen price rejuvenation. Whilst this has been positive for agricultural producers, lower output capacity as a result of this sustained dry period has offset any upward price trends and consequently gross farm returns.
Volatility and low market control, coupled with rising input costs and farm debt and declining asset values has made agribusiness a challenging industry.
For producers, controlling costs, finding methods to increase output in the face of limited resources and value adding will continue to be key for profitable agriculture enterprises in the medium term.
Australia’s capacity to produce clean and healthy product, and our proximity to the growing middle class of Asia continues to be helpful.
Agricultural producers cannot focus solely on the opportunities in Asia, as other global markets currently take a large proportion of our agricultural products. Failing to supply these markets adequately will invite increased competition from other countries, resulting in a loss of market share, which will be hard to regain.
Ferrier Hodgson’s rural and agribusiness team, led by Will Colwell, consists of experienced professionals with extensive hands-on experience in operational and financial management of large cattle and cropping enterprises, as well as processing and marketing across Australia. We also have long-standing experience in working closely with the wine industry, advising growers, producers and financiers.
Our experience includes some of Australia’s largest and most complex agribusiness restructures and transactions.
Our approach focuses on quality advice, commonsense and optimal outcomes for our clients.
- Operational and production reviews which can cover grazing and herd management, risk mitigation strategies, cost-benefit analysis of further investment and recommendations to maximize the marketing mix;
- Restructuring, financial advisory and transactional services including due diligence, restructuring options and recommendations, financial modelling and workout proposals; and
- Formal insolvency engagements.
At Ferrier Hodgson, we don’t just provide advice - we also have the ability to implement our recommendations.