L.ADP.2509 - Feasibility Study of Livestock Advisor Cooperative Model

Summary

This study utilised desktop analysis to identify gaps in service delivery for red meat producers, identified support and information needs of advisors through a survey and focus groups, and proposed a model which builds upon existing successful advisor networking groups, for consideration by MLA and advisors working within the red meat sector.

A relatively high degree of market penetration (circa 30% of the identified national advisor population) is required to ensure viability for a multi-region tiered membership model offering enhanced service provision and collaboration opportunities, built on a common base of networking events and professional development. Regional networking organisations involving a smaller pool of participants with greater voluntary input offer a feasible alternative to a commercial tiered membership model, in certain regions with distinct operating and industry environments.

The interest from advisors in developing and maintaining a network of peers was resounding, and the opportunity for increased networking, industry level mentoring and peer-to-peer learning needs further attention. It is strongly recommended that MLA, potentially working with other RDC’s, continues to explore options to expand the existing Livestock Advisor Network, drive engagement with participants in capacity building programs, and support opportunities for advisor-driven forums for professional development and networking.

Objectives

The overall objectives for the project were to:
1.    determine if a livestock advisor cooperative (or similar) model would be feasible for the red meat industry
2.    identify the scale of a potential market for this model 
3.    provide recommendations for the resources, investment and governance approach required
4.    quantify the scale of income generation that could be achieved with the preferred model.

Key findings

Approximately 20% of livestock producers nationally have been identified as having no access, or only limited access, to locally-based advisory services. Several barriers to the entry of new advisors or expansion of livestock advisor businesses were identified, most significantly concerns around establishing a viable client base and managing additional staff. 

Livestock advisors working in multiple contexts are eager to overcome professional isolation and share knowledge, experiences and technical resources with others. The main motivations to join a cooperative were confirmed as being able to access new networks, resources, and potential clients. The major concerns related to cost: benefit, time commitment and cultural fit.

Examination of existing successful models as well as the survey and focus group responses identified that a potential collaborative organisation for advisors needs to be independent, member-driven, reputable and based on trust. 
A relatively high degree of market penetration (circa 30% of the identified national advisor population) is required to ensure viability for a multi-region tiered membership model offering enhanced service provision and collaboration opportunities, built on a common base of networking events and professional development. To generate positive earnings, a tiered membership model needs to rapidly introduce a wider range of services to attract significant numbers of advisors and producers to the highest fee categories.

Regional networking groups drawing upon a smaller pool of participants represent a feasible alternative to a commercial tiered membership model. A regional organisation is likely to have a heavier reliance on volunteer (unpaid) commitment, and to be more restricted in terms of the scale and scope of events and services offered. There is potential application for the regional group approach in regions with distinct operating and industry environments.

Benefits to industry

Given the relatively small pool of established practitioners, the impact of advisor business failures or career changes away from advisory work can be significant for the red meat sector. Both the advisor and their client are likely to benefit from improved networks, upskilling and access to resources.

If this approach can be developed and implemented on a wider scale, it could enable new entrants to upskill and gain both confidence and technical proficiency with guidance from more experienced professionals.

Further it could offer established advisors or those nearing retirement to change the balance of their workload and potentially prolong their involvement. In each case, the skills base available to the red meat sector is likely to be enhanced.

MLA action

It is strongly recommended that MLA, potentially working with other RDC’s, continues to explore options to expand the existing Livestock Advisor Network, drive engagement with participants in capacity building programs, and support opportunities for advisor-driven forums for professional development and networking.

Future research

In terms of an advisor co-operative, there are two potential strategies which are likely to be applicable in different regions: 

1.    Expansion of the regional group networking approach in regions with small numbers of advisors/specific industry needs, as above (such as Western Australia, or north/west Queensland and the NT).
2.    Development of a multi-region tiered membership model offering enhanced service provision and collaboration opportunities, built on a common base of networking events and professional development.  

Further detailed consultation with advisors is recommended to explore the potential of these strategies, extending beyond the testing of the concept to provide clear details about the resources and member commitment which would realistically be required to develop either of these models successfully. 

Subject to receiving sufficient expressions of interest, the tiered membership model could initially be developed as a staged pilot/prototype within a region where capacity exists to support a meaningful number of events as well as potential service expansion. Based on the desktop analysis as well as survey and focus group findings, potentially suitable regions for prototype development would include:

1.    Central/Southern Qld and Fitzroy Basin
2.    Central West/Tablelands/Northern NSW
3.    Riverina/Murray regions NSW plus northern Victoria.

However, the first and most important priority for establishment of a pilot project would be the level of interest and support from potential advisors within a region. 

Overall, the interest from advisors in developing and maintaining a network of peers was resounding, and the opportunity for increased networking, industry level mentoring and peer to peer learning needs further attention.