Osborne Interim Management is pleased to welcome Joel Benjamin
(BA, MBA) to the organization as a Principal.
Joel is a senior human resources leader who brings deep expertise in executive compensation and total
rewards planning, design and implementation. Experienced at developing total rewards programs that align
and support the organization’s business and people strategies, addressing the changing realities in the
marketplace. Joel brings a strong understanding and consideration for the financial impacts, tax implications,
proxy reporting requirements and cost management strategies that an organization faces when developing
programs. He is a trusted advisor who works effectively from senior executive through to the field-levels and
takes great pride in developing and mentoring other HR professionals. He brings with him an outstanding
reputation for working with discretion and professionalism.
Someone recently asked me about the state of agriculture.
It’s in good shape relative to others in Alberta, although most
consumers pay little attention, and take it for granted.
Before expanding, I want to point out that farmers, one of the
first links in the agri-business value chain, in Alberta and
across Western Canada are currently seeding their crops.
Osborne Interim Management (OIMTM) wishes them and all
the businesses that support them, good weather and
conditions for planting and the many tasks to follow, which
bring us and our families the healthy food we eat.
If we narrow agri-business’s definition to “food production”,
demand in the agri-business sector is solid, with a growing
population and diets demanding more protein. Unfortunately
the 30% of production, which gets wasted, is part of the
equation. Agri-business goes beyond food production though,
and the bio-fuel sector is having challenges with the low price
of oil, which impacts biofuel’s price.
These are exciting times in agri-business and the pace of change continues to accelerate and create
opportunities. Competition is healthy at all links of the value chain with consolidation a continuing trend. M&A
activity has increased amongst the Life Science players with DOW and Dupont merging, and ChemChina
beating out Monsanto for Syngenta.
How crops are marketed is evolving since the CWB lost its single desk position. Farmers now have marketing
opportunities not previously available. Technology has connected them with others along the value chain, and
they’re able to make personal and business relationships not previously possible. Who thought a generation
ago a farmer could be selling direct to brewers in another country, or running their owner micro malt
operation, or even taking their malt barley right to their end consumer via a micro brewing operation.
Many growers have complimentary businesses in addition to their farming operation, and are constantly
looking for new business development opportunities. A family processing operation I called on in 1983 is now
a global player in their sector.
Companies participating in Alberta’s agri-business sector appreciate its relative stability, compared to the
energy sector.
As opposed to the loss of almost 20,000 jobs in the Alberta energy sector in 2016, demand for
farm labour is strong. Although the fluctuation in the price of oil and the Canadian dollar impact both the
energy and agri-business sectors, consider some additional “moving parts” those in the food production
sector must monitor.
- Inputs prices for chemistry have generally flattened, while fertilizer prices have developed new patterns.
- Growers employ a range of models to manage equipment costs.
- Farm sizes continue to optimize as farmland prices increase.
- Weather is a constant factor. In 2013, the creek I live on was part of a major flood incident. Today, the
same creek is dry, and there’s a complete fire ban across Alberta, as fires in Northern Alberta continue to
burn. In recent weeks markets have reacted to flooding in Argentina and drought persisting in Brazil.
- Companies have been created to offer new risk management tools, and agri-business managers are
employing different models to manage margins.
- On the consumer front, Earl’s decision to employ a marketing tactic effectively cutting out Alberta beef
producers is one of the more recent examples of the impact changes in consumer preference can have,
often based on perceptions. A plethora of new and ambiguous language including “sustainable, ethical,
and humane” is replacing established guidelines based more on reality and science. Fortunately, after
significant backlash, Earl’s wants to “fix it and make it right”.
- Policies continue to change with governments and examples include the CWB (grain marketing), UPOV
(intellectual property rights for breeders), AB Farm Worker WCB, and ALMA (AB Livestock and Meat
Agency) being eliminated in Alberta. How ag research is funded will also change.
- Technology advances, although international markets can make its adoption difficult. China appears to be
warming to GM which many felt they used as a trade barrier, while expert opinions vary on whether
growers should use quinclorac herbicide on their canola, and much smaller niche products like Ontario’s
ginseng producers are learning a hard lesson from dealing with the same nation on a non-GM front.
Those in agri-business have much to be optimistic about, and it’s still a “people’s business”, where
relationships can have significant impact. Participants should not hesitate to try new approaches if they do
their due diligence, assess and manage costs and risks. Trialing concepts using interim or fractional
management services such as those offered by OIM, is a great option. Our broad team of industry-proven
experts works together to help businesses, whatever their challenge or opportunity is.
Norm Dreger (click to see Norm’s profile)
Principal
Osborne Interim Management is pleased to welcome Norm Dreger (B.Sc,Ag, PAg, MBA) to the organization as a Principal.
Norm has over 30 years of experience in the agri-business sector. His numerous and wide-ranging positions have included both technical and commercial roles. He has applied his collaborative management style to senior level assignments in Canada, North America, Europe and globally. He’s as comfortable in a multi-national’s boardroom debating strategy as he is leading field staff through successful implementation. Norm is equally adept at engaging with producers and connects with people, asking the right questions to uncover the real issues. He creatively identifies the optimal solutions and effectively supports the associated change management challenges.
