Upon acceptance of the shareholder agreement by each of the 3 participating societies:
Australian Limousin Breeders Society
Australian Simmental Breeders Association
The Shorthorn Society of Australia
A Shared Services business will commence from 1st July 2020.
The purpose of this business is to provide finance and data administration, registrar and member services. The value points of the new operation are for risk mitigation, economies of scale, business efficiency, broader member services all placing downward pressure on current costs.
In 2019, the Simmental Australia board along with the boards from both the Limousin and Shorthorn Societies of Australia began discussions surrounding the possibilities for creating further efficiencies for breed society models.
Currently all three societies duplicate many services for their members. It was believed that creating a single business model may allow societies to provide these services with greater efficiency and effectiveness for members. Given the effects of the current drought, this process was considered important, however it was also critical that each society be able to deliver improved services to members as a result.
Simmental Australia are pleased to make the above announcement in relation to the investigation of a potential shared services business.
It is proposed to create a new entity, commencing on July 1st 2020, which will be owned by each society as shareholders and that will provide dedicated services to members.
Each society will maintain its own independence, however basic services such as accounts, registrations, inventory, DNA services and all other services will be provided by the potential new business. The new entity will not be responsible for strategic or technical services, beyond registrations, transfers, DNA submissions and inventory management.
Every effort has been made to accommodate existing personnel from each society in the new model. Whilst this is a new model for Australia, similar models have proved extremely effective elsewhere, such as New Zealand, where their Performance Beef Breeders (PBB) platform, operates very similarly.
This is an exciting step forward for the breed society model in Australia.
Work is still being progressed on the finalisation of the business and Simmental Australia will advise members more details once this is completed.
If you have any queries on concerns, please don’t hesitate to contact any Simmental Australia board members.