Farming in the Cloud – Xerocon 2014
-
date post
21-Oct-2014 -
Category
Technology
-
view
310 -
download
2
description
Transcript of Farming in the Cloud – Xerocon 2014
![Page 1: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/1.jpg)
Beautiful accounting software
Beautiful accounting software
Hosted by Ben Richmond Sales and Product Lead Xero NZ
Lifting the Rural Sector together
Farming stream
The need
Better collaboration
Better tools
Real-time AccuracyRun a farm as a business
What we are launching
Single ledger for the rural sector
EDI platformfor rural
Farming add-on software
Rural Bank Feeds
Livestock reconciliation
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
Add-ons
Here now PlanningBuilding
bull Innovation partnership launch
bull Direct feed
bull Further platform integration
PGG Wrightson announcement
Key Rural Feeds
In ProgressLive
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 2: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/2.jpg)
Beautiful accounting software
Hosted by Ben Richmond Sales and Product Lead Xero NZ
Lifting the Rural Sector together
Farming stream
The need
Better collaboration
Better tools
Real-time AccuracyRun a farm as a business
What we are launching
Single ledger for the rural sector
EDI platformfor rural
Farming add-on software
Rural Bank Feeds
Livestock reconciliation
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
Add-ons
Here now PlanningBuilding
bull Innovation partnership launch
bull Direct feed
bull Further platform integration
PGG Wrightson announcement
Key Rural Feeds
In ProgressLive
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 3: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/3.jpg)
Lifting the Rural Sector together
Farming stream
The need
Better collaboration
Better tools
Real-time AccuracyRun a farm as a business
What we are launching
Single ledger for the rural sector
EDI platformfor rural
Farming add-on software
Rural Bank Feeds
Livestock reconciliation
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
Add-ons
Here now PlanningBuilding
bull Innovation partnership launch
bull Direct feed
bull Further platform integration
PGG Wrightson announcement
Key Rural Feeds
In ProgressLive
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 4: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/4.jpg)
Farming stream
The need
Better collaboration
Better tools
Real-time AccuracyRun a farm as a business
What we are launching
Single ledger for the rural sector
EDI platformfor rural
Farming add-on software
Rural Bank Feeds
Livestock reconciliation
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
Add-ons
Here now PlanningBuilding
bull Innovation partnership launch
bull Direct feed
bull Further platform integration
PGG Wrightson announcement
Key Rural Feeds
In ProgressLive
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 5: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/5.jpg)
The need
Better collaboration
Better tools
Real-time AccuracyRun a farm as a business
What we are launching
Single ledger for the rural sector
EDI platformfor rural
Farming add-on software
Rural Bank Feeds
Livestock reconciliation
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
Add-ons
Here now PlanningBuilding
bull Innovation partnership launch
bull Direct feed
bull Further platform integration
PGG Wrightson announcement
Key Rural Feeds
In ProgressLive
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 6: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/6.jpg)
What we are launching
Single ledger for the rural sector
EDI platformfor rural
Farming add-on software
Rural Bank Feeds
Livestock reconciliation
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
Add-ons
Here now PlanningBuilding
bull Innovation partnership launch
bull Direct feed
bull Further platform integration
PGG Wrightson announcement
Key Rural Feeds
In ProgressLive
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 7: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/7.jpg)
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
Add-ons
Here now PlanningBuilding
bull Innovation partnership launch
bull Direct feed
bull Further platform integration
PGG Wrightson announcement
Key Rural Feeds
In ProgressLive
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 8: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/8.jpg)
Add-ons
Here now PlanningBuilding
bull Innovation partnership launch
bull Direct feed
bull Further platform integration
PGG Wrightson announcement
Key Rural Feeds
In ProgressLive
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 9: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/9.jpg)
bull Innovation partnership launch
bull Direct feed
bull Further platform integration
PGG Wrightson announcement
Key Rural Feeds
In ProgressLive
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 10: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/10.jpg)
Key Rural Feeds
In ProgressLive
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 11: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/11.jpg)
Ian ProudfootGlobal Agribusiness Leader
February 2014kpmgcomnz
THE BIG PICTURECAPTURING NEW ZEALANDrsquoS PRIMARY OPPORTUNITYXeroCon Auckland20 February 2014
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 12: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/12.jpg)
THE GLOBAL AGRI-FOOD SYSTEM IS CHANGING
Production systems
Naturalenvironment
Economic and political environment
Marketdevelopments
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 13: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/13.jpg)
Population ndash 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
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 14: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/14.jpg)
Source OECD data reported by KPMG Australia in publication ldquoExpanding Horizons Agribusiness in Australia 201112rdquo
Population ndash growth and change Asia PacificECONOMIC AND POLITICAL ENVIRONMENT
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 15: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/15.jpg)
Source OECD iLibrary
Government focus and intervention Producer support payments as a of gross farm receipts
ECONOMIC AND POLITICAL ENVIRONMENT
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 16: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/16.jpg)
Source Trucost 2012 for KPMG Report ldquoExpected the Unexpected Building business value in a changing worldrdquo
6
No consensus and sustainabilityNATURAL ENVIRONMENT
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 17: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/17.jpg)
Source ANZ Insight Greener Pastures The Global Soft Commodity Opportunity for Australia and New Zealand - A Report from Port Jackson Partners Commissioned by ANZ ndash October 2012
Global water scarcity Million per capitaNATURAL ENVIRONMENT
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 18: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/18.jpg)
MARKET DEVELOPMENTSDemand for non-food agricultural products
Source UN Food and Agriculture Organisation FAO Working Paper ldquoMapping 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 kgperson)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 19: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/19.jpg)
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 $1049 per week per Statistics NZ June 2012 NZ Income Survey
Farm employee remuneration in comparison to average graduate salary in New Zealand
PRODUCTION SYSTEMS
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 20: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/20.jpg)
21
Water storage and irrigation
Transportationand supply
chain
Fast communications
Education and social
infrastructure
Infrastructure limitationsPRODUCTION SYSTEMS
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 21: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/21.jpg)
Source KPMG International ndash Agricultural and Food Value Chain Report [July 2013]
Banking
COMPLEXITY
Effluent Management
HR Systems
Co-operativeinformation
Extension PestidentificationCrop prices
TRANSACTIONAL
INFORMATIONAL
LOCAL CUSTOMISEDNATIONAL
Weather
Accelerating technology revolution Type of IT interventions in agriculturePRODUCTION SYSTEMS
Financial Reporting
News feeds
Production systems
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 22: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/22.jpg)
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
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 23: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/23.jpg)
24
NEED SYSTEMATIC RESPONSES
Governance
Tools
CapacityAnalyse and report
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 24: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/24.jpg)
copy 2013 KPMG a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International Cooperative
Ian ProudfootGlobal Agribusiness LeaderKPMG Auckland New Zealand+64 9 367 5882+64 21 656 815iproudfootkpmgconzwwwfieldnotesconz
THANK YOU
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 25: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/25.jpg)
Today
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 26: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/26.jpg)
Future
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 27: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/27.jpg)
How-it-works
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 28: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/28.jpg)
Adoption(of(New(Technology(on((New(Zealand(Dairy(Farms(Prepared-for-Xerocon--Prepared(by(David(Chin(Lead(Key(Accounts(Manager((
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 29: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/29.jpg)
LIC Key Accounts
Diagnostics
Farm(AutomationGenetics
Farm(Software(Herd(Recording
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 30: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/30.jpg)
100(NZ(owned(Farmer(Owned(CoLoperative
$193m(revenue(
4m(inseminations(
+11m(milk(samples(processed(
7m(animals(on(software(product(((((((((((((((((((((((((((((((((((((((((((( 47-million-cows-(2yrs-and-older)( ( ( (
300K+(DNA(parentage(tests
LIC Key Accounts
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 31: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/31.jpg)
11(spend(on(RampD(
19(terra(bytes(of(genomic(data(
556(cows(amp(bulls(fully(sequenced(
134m(Herd(Test(results 32-million-cows-on-database(
15(PhDs(crunching(the(numbersin-an-RampD-science-department-of-45---
LIC Key Accounts
We(process(some(BIG(DATA(hellip
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 32: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/32.jpg)
We select Bull Dams from the National Herd hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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(hellip
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 33: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/33.jpg)
hellip and mate them to Elite Sires hellip
Elite
Sire
s (p
er B
W $
)
0
4
7
11
14
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 34: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/34.jpg)
hellip to produce Bull Calves from which the Progeny Test (SPS) team will be selected
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 35: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/35.jpg)
Four years later once the SPS bulls become Proven Bulls hellip
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
Breeding Worth ($)-60 -30 0 30 60 90 120 150 180 210 240 270 300
National Herd (four years earlier) Bull Calves
Proven Bulls
AB
Four(years(later(we(test(the$daughters$of(these(bulls
LIC Key Accounts
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 36: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/36.jpg)
hellip we market the best as PREMIER SIRES (to be mated over the National Herd)
Nat
iona
l Her
d (c
ows
per B
W $
)
0
4500
9000
13500
18000
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
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 37: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/37.jpg)
hellip(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
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 38: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/38.jpg)
Farmers(and(Technology
Farmers(arenrsquot(getting(younger(
Our(Experience(Launched-our-first-smart-phone-application-in-July-2013-
2618-users-(26)-with-over-205500-events
Adoption(of(new(technologies(is(surprisingly(high(bullRelevant-
bullSubstitutes-for-something-they-already-do-
bullSolves-a-practical-problem-
bullThey-can-quantify-the-value-
bullEasy-to-use-
LIC Key Accounts
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 39: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/39.jpg)
There(is(a(lot(to(think(about(hellip
LIC Key Accounts
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 40: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/40.jpg)
Farmers(and(Technology
LIC Key Accounts
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 41: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/41.jpg)
Farmers(and(Technology(ndash(drivers(hellip
Compliance(( Electronic(Identification(( ( NAIT-
( Environmental(( ( Nutrient-management-
- - Proof-of-fertiliser-placement-
- - Water-use-
( Animal(welfare(( - Inductions-
- - Health-treatments
LIC Key Accounts
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 42: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/42.jpg)
Farmers(and(AdvisorsHow(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
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 43: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/43.jpg)
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(
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 44: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/44.jpg)
The(future(hellip
BioLphysical(Data(On(farm(measuring(devices
Financial(Data(
Accountants-
Banks-
Optimised(business(decisions(
LIC Key Accounts
Beautiful accounting software
![Page 45: Farming in the Cloud – Xerocon 2014](https://reader038.fdocuments.us/reader038/viewer/2022110301/5446f616afaf9f69178b47fe/html5/thumbnails/45.jpg)
Beautiful accounting software