Reconciling herd data to understand business performance

The demand for beef producers to collect, maintain and find the right data is ever-expanding. It’s s needed to make informed decisions, satisfy the accountant and bank manager, and in future, likely to meet environmental reporting requirements.

HerdFlow, a livestock inventory management system – recently launched by Bush Agribusiness and co-funded by the MLA Donor Company – is designed to conquer the challenge of recording and reconciling herd data.

“One of the biggest challenges for producers is maintaining records which enable business understanding and maintain our ability to continue in this industry,” Bush Agribusiness consultant Harry Evans said.

What is reconciled herd data?

Reconciling your herd data goes beyond knowing what’s in the paddock. Instead, it’s about tracking livestock purchases, sales, births and deaths over time to understand overall herd and business performance.

Harry said having that deeper understanding is crucial to making improved and informed decisions around your business.

“Having a standardised way of calculating animal units helps find and address productivity levers,” Harry said.

With the right data on hand, producers can compare performance year-on-year to make decisions or measure the impact of decisions, whether through metrics like kilograms of beef produced, reproductive rate, or sale weight.

“Most producers have their finger on the pulse and know what’s in the paddock or their latest pregnancy testing result, but there is an industry gap in providing a reconciled inventory.”

Harry said that reconciled herd data is the only way to understand which direction your business is going.

“Reconciling provides a critical piece of information − ‘inventory change’. Without it, you cannot calculate productivity, gross profit, or operating profit,” he said.

“This is the information your accountant is looking for, but it hasn’t always been adjusted to reflect what is happening on the ground.

What is HerdFlow?

HerdFlow is a livestock inventory management system built to provide high-level and useful metrics of your herd, using a standardised methodology to enable an understanding of herd performance.

“There is ambiguity in our industry, with a lack of clear livestock classifications which restricts the ability to produce a reconciled herd,” Harry said.

Bush Agribusiness developed the Australian Herd Classification Guidelines to clearly define herd makeup through age, sex and reproductive status, allowing for consistency in reporting.

HerdFlow focuses on high-level metrics including kilograms produced, animal units run, reproduction and gross profit rather than recording individual paddocks, animals or their health and treatments.

“These metrics have several applications, such as carrying capacity assessments, property valuations, business and enterprise analysis, and setting forage budgets.”

The data is also used to estimate herd emissions, which is being increasingly requested throughout the supply chain.

“Productivity and profitability can’t be calculated if the numbers on the books don’t reflect what is happening on the ground,” Harry said.