Concerns Mount for Agricultural Business Research Institute Amid Financial Struggles

Concerns are escalating regarding the future of the Agricultural Business Research Institute (ABRI) located in Armidale, following reports of significant financial challenges and a wave of staff departures.

In a notable turn of events, Chief Executive Officer and Acting Managing Director Christian Duff, who only assumed his role in February after transitioning from Angus Australia, has stepped down.

Several operations staff have been retrenched or opted to leave the organization, with rumors suggesting that departures—either recent or impending—could total up to seven or eight. The previous Managing Director, Anita Kauffmann, had already concluded her tenure.

As the custodian of BreedPlan, ABRI describes itself on its official website as “a leading provider of innovative agtech products, software services, and technology solutions on a global scale.” The organization is owned under a controlled entity arrangement by the University of New England (UNE).

Beef Central reached out for a phone interview with ABRI Chair Angela Schuster, but received a written response that echoed earlier statements regarding the ongoing restructuring efforts.

ABRI’s statement confirmed that Mr. Duff’s resignation followed a review of the commitment required for the role, particularly during this transformative phase for the organization.

The institute refrained from providing specific details about losses estimated between $700,000 and $800,000 annually or whether existing reserves had diminished.

Financial Rescue and Support

Amidst circulating rumors at a recent Cattle Australia event in Dalby, Mick Crowley, Managing Director of Meat & Livestock Australia, clarified to Beef Central that while MLA supports BreedPlan, no financial rescue package for ABRI is currently in play.

However, ABRI’s statement mentioned that UNE had extended a $5 million loan facility to support its new strategic plan, as disclosed in the upcoming 2024 annual report.

ABRI’s most significant revenue source comes from BreedPlan activities. Concerns have been raised that recent operational changes by major customer breeds, such as Angus and Wagyu, which now handle some functions internally, may have adversely affected this revenue stream. Additionally, there has been a noted decline in revenue from international customers.

Software Issues and Service Performance

Beef Central also inquired about reports of software failures affecting Brahman BreedPlan users and other breeds earlier this year, which might be connected to maintenance and upgrade issues stemming from ABRI’s financial situation. ABRI acknowledged a temporary outage in 2024 and stated that resources have been allocated to enhance their IT infrastructure.

ABRI’s Commitment to Improvement

During last week’s BreedPlan 40th anniversary celebration in Armidale, questions about the financial state of ABRI were reportedly not addressed. Nonetheless, the institute has made the following commitments:

ABRI is at the forefront of livestock breeding technology, providing data-driven solutions to enhance productivity, sustainability, and profitability in the agricultural sector.

Our offerings, including the BreedPlan Genetic Evaluation and various AgTech products, deliver a diverse and resilient revenue base.

ABRI is driven to improve genetic gains, aligning with market demands.

Strategic Transformation Initiatives

In August 2024, ABRI initiated a major strategic transformation to become a more commercially focused entity, closely aligned with customer needs.

We are focusing on enhancing communication and service delivery while re-evaluating our organizational structure to better meet our strategic ambitions.

This transformation has resulted in staff re-deployments and new appointments aimed at strengthening capability for a sustainable future.

Upcoming Leadership Changes

ABRI is finalizing the recruitment of a new Managing Director, with high-caliber candidates applying from both Australia and abroad, showing the organization’s respected position in the industry.

Financial Overview

As a controlled entity of UNE, ABRI’s financial statements are reviewed in UNE’s annual reports. The 2024 report disclosed the $5 million loan support from UNE to further develop its strategic initiatives.

Ongoing efforts are being implemented to right-size the organization’s cost base and grow revenue for long-term financial sustainability.

ABRI maintains a firm grasp on its financial position and has initiated a series of changes over the past 14 months to ensure its longevity.