1. Harnessing Data to
Improve Cattle Farming
DARSHI NIRANJAN, JULIE VU, KIMBERLEY GAGO, MICHAEL SAMY, SELINA ONG, YASH WADHWANI
2. Product FinancialsStakeholdersIndustry
• Asia is one of the fastest growing economic regions, with a population growing close to
60% of the world’s population.
• These growing statistics are expected to increase Australia’s agrifood exports by 142%
between 2007 and 2050.
• The issue of growing demand in the face of limited supply must be addressed.
• Increased living standards promote stricter regulations on food safety standards.
• Australia has already captured 40% of China’s beef import market
• Limited access to real time health information, best practices and face high costs for
raising cattle.
8. Product FinancialsStakeholdersIndustry
• Growing access to internet services that are not being utilised to improve cattle farming
• Cattle information is difficult to collect due to the large scale of farms
• Cost of common diseases such as cattle tick: $156m, Prevention cost: $1.7m
(Advantages of real-time data)
• ANZ has access to data from each farm
• Two revenue sources - Subscription fees and interest revenue
• Broaden ANZ’s network with potential to increase market share
• Beef Central is one of our main competitors, providing live data on the cattle market
• Our platform is more personalised and informative for farmers by providing:
- Tracking of a farmer’s own cattle and health status
- Online forum for exchanging ideas and seeking help from other farmers
9. Costs:
• Initial Cost: $1,500,000
• Subsequent Costs:
$750,000 p/a
• Trackers:
- $70 each
- $42,000 loan/farm
• RFID tags per head:
- $13.22 for 125 cattle
- $7.78 for 250 cattle
- $3.43 for 1250 cattle
Product FinancialsStakeholdersIndustry
Revenue Streams:
• Subscription Fees to the
Platform ($500 per year)
• Interest Revenue from loans
to finance Trackers
• Target: 4,500 cattle farmers
• Average ongoing revenue of
approximately $2,250,000
Risks:
• Payment
- Secure systems
• Delivery
- Reliable suppliers
• Performance
- Lack of demand from
farmers
• Credit
- Defaulting on loan
repayments for trackers
11. Appendix A - Industry
● In 2014, the US produced ~10.8 million tonnes of beef (Meat & Livestock Australia, Steiner
Consulting Group US Market Report, US Cattle Industry Fast Facts)
● In 2014, Australia produced ~2.5 million tonnes of beef (Meat & Livestock Australia, Fast
Facts - Australia’s Beef Industry, 2014)
● Asia comprises a full 30% of the world's land area with 60% of the world's current population.
It also has the highest growth rate today. (World Population Review, Asia Population 2016)
● Australia’s agrifood exports expected to increase by 142% between 2007 and 2050
(Australian Government Department of Agriculture and Water Resources, Food Demand in
the Asian Century, 2015)
● In 2014-15, Australia supplied 40% of China’s import market for beef (Australian Government
Department of Foreign Affairs and Trade, China - Australia Free Trade Agreement Fact
Sheet, 2016)
12. Appendix B - Stakeholder Analysis
● “Various configurations are available to record and transmit the animal's core body
temperature, pH or internal gas pressure. An alarm may sound if the animal is acidotic or
suffering from bloat. Many cattle diseases are accompanied by a change in internal
temperature, pH and pressure. If an animal is sick, the appropriate data can be transmitted to
alert the producer's computer or even light up the ear tag on the sick animal for quick sorting
and doctoring.” (Farm Industry News, Animal Trackers 2006)
● Cattle tick costs the Australian cattle industry $156 million/year or $7,902/herd. If the cattle
tick was controlled in Australia and reduced to its lowest level, the average cattle producer
would gain $3,104/year (Meat & Livestock Australia, Priority list of endemic diseases for the
red meat industry 2015)
● A symptom of the cattle tick is a high fever, which may reduce bull fertility for up to one
breeding season and treatment costs and vet bills can be expensive (Queensland
Government, Managing Tick Fever in Cattle, 2016)
13. Appendix C - Financial Analysis
● Target: 4,500 cattle farmers.
○ 45,000 cattle farms which represents 50% of total farms (National Farmers Federation,
2009-2010)
○ 66% of farmers have internet (ABS, 2008-2009)
○ Estimating that 33% of cattle farmers have internet.
○ 33% x 45,000= 15,000 cattle farms.
○ Assumption of 30% market penetration: 30% x 15,000 = 4,500 cattle farmers.
● Initial Cost: $5,000,000
○ 6 Months to Construct the Website:
■ Website Designer Wage: $25,000 (payscale.com)
■ Agribusiness/Cattle Specialist Salary: $100,000
■ Developing the Website: $10,000 (Joomstore, 2014)
■ Real Time Weather Data Software: $1,000,000 (1500 weather stations x $600
subscription per year) (Bureau of Meteorology, 2016)
○ Cost Per Farmer ($1,500,000/ 4500) = $333.333
14. Appendix C - Financial Analysis
● Subsequent Costs: $750,000 p/a.
○ Agribusiness/Cattle Specialist Salary: $100,000
○ Website Maintenance/ IT Support: $50,000 (payscale.com)
○ Weather Data Subscriptions: $600,000 (1500 weather stations x $400 renewal fee)
○ Data Analytics Report
● Revenue:
○ Average ongoing Subscription Fee Revenue: $2,250,000
■ $500 per year ($333.33 x 1.5 markup) x 4,500 cattle farmers
● Trackers:
○ $70 per tracker
■ Small Pakista based startup company, Cowlar, has created a health tracker for
the dairy industry which measures similar symptoms, priced at $69 (Fortune
Magazine, 2016).
○ $42,000 loan from ANZ per farm
■ 45,000 cattle farms = 26.6 million cows
■ 1 cattle farm = 600 cows
■ $70 x 600 = $42,000
