A cattle producer in the Top End of NT requested assistance from Rural Business Support (RBS) due to the temporary ban of the live cattle export trade in June 2011 which had a severe financial impact on their cattle breeding business.
The producer and his wife had been forced to apply for carry on finance from their bank to cover a one million dollar shortfall of sales revenue with significant additional costs such as agistment, freight and mustering costs.
A rural financial counsellor arranged a meeting on their cattle station to discuss their predicament and to explore the options available and the way forward.
It was agreed that they should apply for a Farm Concessional Loan to restructure half of their business debt with a federal government loan. This application was successful and $1 million of their long term debt was transferred for five years at an interest rate of around 3.5% less than what they were paying to their bank.
The RFC also conducted a financial assessment of their business using the Plan to Profit (P2P) software program which enabled them to project forward their financial position over the next five years.
This business modelling demonstrated to their bank manager that, in time, they would make a full financial recovery, based on a return to normal trading conditions once the ban was lifted.
Now in 2016, after four on-property visits from their RFC, this Top End cattle producing family are now looking to undertake additional training and are looking to join a benchmarking group to compare production and financial performances with a neighbouring business.
With an improvement in cattle prices and their own business management skills, they feel well equipped to face any challenges that they may face in the future.
RBS has been conducting quarterly visits to the Top End and Alice Springs regions of NT since 2011.