Farming in the Cloud – Xerocon 2014

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Xero Farming in the Cloud presentation from Xerocon NZ 2014. Hosted by Xero NZ Sales and Product Lead Ben Richmond and featuring Xero add-on partners KPMG, Figured on Farm, LIC and Receipt Bank.
Xero is beautiful online accounting software that connects small businesses and their accountants together in the cloud.

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Farming in the Cloud – Xerocon 2014

  1. 1. Beautiful accounting software
  2. 2. Beautiful accounting software Hosted by Ben Richmond, Sales and Product Lead, Xero NZ
  3. 3. Lifting the Rural Sector together
  4. 4. Farming stream
  5. 5. The need Better collaboration Better tools Real-time AccuracyRun a farm as a business
  6. 6. What we are launching Single ledger for the rural sector EDI platform
 for rural Farming add-on software Rural Bank Feeds Livestock reconciliation
  7. 7. CoA, unprocessed stock transactions Stock reconciliation journal Livestock count Livestock schedule Bank fees AP invoices Rural invoices GST returns Financial statements Xero and Farming together Farming
  8. 8. Add-ons Here now PlanningBuilding
  9. 9. • Innovation partnership launch • Direct feed • Further platform integration PGG Wrightson announcement
  10. 10. Key Rural Feeds In ProgressLive
  11. 11. Ian Proudfoot! Global Agribusiness Leader February 2014! kpmg.com/nz THE BIG PICTURE
 CAPTURING NEW ZEALAND’S PRIMARY OPPORTUNITY" " XeroCon Auckland! 20 February 2014
  12. 12. THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING Production
 systems Natural" environment Economic 
 and political environment Market" developments
  13. 13. Population – growth and change: Percentage of Population Residing in Urban Areas Source: United Nations Department of Economic and Social Affairs Population Division; Percentage of Population Residing in Urban Areas (1950 to 2050); October 2012 ECONOMIC AND POLITICAL ENVIRONMENT
  14. 14. Source: OECD data reported by KPMG Australia in publication “Expanding Horizons: Agribusiness in Australia 2011/12” Population – growth and change: Asia Pacific" ECONOMIC AND POLITICAL ENVIRONMENT
  15. 15. Source: OECD iLibrary Government focus and intervention: Producer support payments as a % of gross farm receipts ECONOMIC AND POLITICAL ENVIRONMENT
  16. 16. Source: Trucost 2012 for KPMG Report “Expected the Unexpected: Building business value in a changing world.” 6 No consensus and sustainability NATURAL ENVIRONMENT
  17. 17. Source: ANZ Insight: Greener Pastures: The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ – October 2012 Global water scarcity: Million per capita NATURAL ENVIRONMENT
  18. 18. MARKET DEVELOPMENTS Demand for non-food agricultural products: Source: UN Food and Agriculture Organisation: FAO Working Paper “Mapping Supply and Demand for Animal Sourced Foods Note that poultry increase for India amounts to 577% per capita Growth in per capita demand for livestock proteins between 2000 and 2030 (%increase in kg/person)
  19. 19. Genetics - human, animal and plant Above Source: Federated Farmers / Rabobank Farm Employee Remuneration Survey 2012, Total Package Value for selected farm roles comparison to average salary and wages for graduate qualified employees of $1,049 per week per Statistics NZ June 2012 NZ Income Survey. Farm employee remuneration in comparison to average graduate salary in 
 New Zealand PRODUCTION SYSTEMS
  20. 20. !21 Water storage ! and irrigation Transportation! and supply chain Fast communications Education 
 and social! infrastructure Infrastructure limitations PRODUCTION SYSTEMS
  21. 21. Source: KPMG International – Agricultural and Food Value Chain Report [July 2013] Banking COMPLEXITY Effluent Management HR Systems Co-operative" information Extension / Pest
 identificationCrop prices TRANSACTIONAL INFORMATIONAL LOCAL / CUSTOMISEDNATIONAL Weather Accelerating technology revolution: Type of IT interventions in agriculture PRODUCTION SYSTEMS Financial Reporting News feeds Production
 systems
  22. 22. THE KEY RISKS FACING NZ FARMING BUSINESSES.... COMMODITY PRICE 
 VOLATILITY BREACH OF CONSUMER TRUST SUPPLY CHAIN FAILURES FX / INTEREST RATE MOVEMENTS WEATHER EVENTS AND SHOCKS BIOSECURITY INCURSION REVOCATION 
 OF LICENSE 
 TO FARM COMPETITOR ACTIVITIES
  23. 23. !24 ...NEED SYSTEMATIC RESPONSES Governance Tools Capacity Analyse and report
  24. 24. © 2013 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative. Ian Proudfoot! Global Agribusiness Leader! KPMG Auckland, New Zealand! +64 9 367 5882! +64 21 656 815! iproudfoot@kpmg.co.nz! www.fieldnotes.co.nz THANK YOU
  25. 25. Today
  26. 26. Future
  27. 27. How-it-works
  28. 28. Adoption(of(New(Technology(on(( New(Zealand(Dairy(Farms( Prepared-for:-Xerocon-- " Prepared(by:(David(Chin,(Lead(Key(Accounts(Manager( (
  29. 29. LIC Key Accounts Diagnostics Farm(AutomationGenetics Farm(Software( Herd(Recording
  30. 30. 100%(NZ(owned(Farmer(Owned(CoLoperative $193m(revenue( 4m(inseminations( +11m(milk(samples(processed( 7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 
 4.7-million-cows-(2yrs-and-older)(( ( ( 300K+(DNA(parentage(tests LIC Key Accounts
  31. 31. 11%(spend(on(R&D( 19(terra(bytes(of(genomic(data( 556(cows(&(bulls(fully(sequenced( 134m(Herd(Test(results
 32-million-cows-on-database( 15(PhDs(crunching(the(numbers
 in-an-R&D-science-department-of-45--- LIC Key Accounts We(process(some(BIG(DATA(…
  32. 32. We select Bull Dams from the National Herd … NationalHerd(cowsperBW$) 0 4,500 9,000 13,500 18,000 Breeding Worth ($) -60 -30 0 30 60 90 120 150 180 210 240 270 300 Bull Dams (potential) National Herd We(select(Bull(Dams(from(the(national(herd LIC Key Accounts What(we(do(in(a(nut(shell(…
  33. 33. … and mate them to Elite Sires … EliteSires(perBW$) 0 4 7 11 14 NationalHerd(cowsperBW$) 0 4,500 9,000 13,500 18,000 Breeding Worth ($) -60 -30 0 30 60 90 120 150 180 210 240 270 300 Bull Dams (potential) National Herd Elite Sires Mate(them(to(elite(sires LIC Key Accounts
  34. 34. … to produce Bull Calves from which the Progeny Test (SPS) team will be selected. NationalHerd(cowsperBW$) 0 4,500 9,000 13,500 18,000 Breeding Worth ($) -60 -30 0 30 60 90 120 150 180 210 240 270 300 National Herd Bull Calves A·B· BW based on parent average To(produce(bull(calves(which(we(( put(through(a(progeny(test(program( LIC Key Accounts
  35. 35. Four years later, once the SPS bulls become Proven Bulls … NationalHerd(cowsperBW$) 0 4,500 9,000 13,500 18,000 Breeding Worth ($) -60 -30 0 30 60 90 120 150 180 210 240 270 300 National Herd (four years earlier) Bull Calves Proven Bulls A·B· Four(years(later,(we(test(the$ daughters$of(these(bulls LIC Key Accounts
  36. 36. … we market the best as PREMIER SIRES (to be mated over the National Herd). NationalHerd(cowsperBW$) 0 4,500 9,000 13,500 18,000 Breeding Worth ($) -60 -30 0 30 60 90 120 150 180 210 240 270 300 Proven Bulls PREMIER SIRES National Herd (four years earlier) And(select(the(next(generation(of(elite(sires( (to-be-used-over-the-national-herd) LIC Key Accounts
  37. 37. …(and(it(is(all(worth(it Genetic(gain(contributes($312m(per(year(to(the(dairy(industry( Improving(the(national(herd(reproductive(performance($34m(per(year( Providing(tests(and(software(to(make(better(culling(decisions(is(worth($40m(per(year( " Compound-interest-is-the-greatest- mathematical-discovery-of-all-time.- Albert-Einstein-(1879-O-1955)- " Genetic(gain,(like(compound(interest,( is(cumulative(and(permanent. LIC Key Accounts
  38. 38. Farmers(and(Technology Farmers(aren’t(getting(younger( " " " Our(Experience( Launched-our-first-smart-phone-application-in-July-2013- 2,618-users-(26%)-with-over-205,500-events " Adoption(of(new(technologies(is(surprisingly(high( •Relevant- •Substitutes-for-something-they-already-do- •Solves-a-practical-problem- •They-can-quantify-the-value- •Easy-to-use- " LIC Key Accounts
  39. 39. There(is(a(lot(to(think(about(…. LIC Key Accounts
  40. 40. Farmers(and(Technology LIC Key Accounts
  41. 41. Farmers(and(Technology(–(drivers(… Compliance( " ( Electronic(Identification( ( ( NAIT- " ( Environmental( ( ( Nutrient-management- - - Proof-of-fertiliser-placement- - - Water-use- " ( Animal(welfare( ( - Inductions- - - Health-treatments LIC Key Accounts
  42. 42. Farmers(and(Advisors How(do(I(make(sense(of(all(of(this?( Daily(per(cow Weekly( Monthly Yearly milk-yields- somatic-cell-counts- milk-fat-yield- air-temperature- soil-moisture- liveweight Grass-growth- Feed-utilised- Feed-wasted- Effluent-spread- Water-used-for-irrigation- Fertiliser-applied Soil-Analysis- An(average(400(cow(dairy(farm(can(collect(over(1(million(data(points(each(year!!!!( LIC Key Accounts
  43. 43. Farmers(and(Advisors Do-you-really-know-the-marginal-cost- of-increasing-production?- " Do-you-really-know-which-cows-are- more-efficient-at-increasing-your- production?- " When-was-the-last-time-you-challenged- and-examined-orthodox-thinking?- LIC Key Accounts How(do(I(make(sense(of(all(of(this?(
  44. 44. The(future(…. BioLphysical(Data( " " " " " " " " " " " " On(farm(measuring(devices Financial(Data( " " " " " Accountants- " Banks- Optimised(business( decisions( LIC Key Accounts
  45. 45. Beautiful accounting software

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