Benefits

Indigenous landholder groups in Western Australia want to see the benefits that flow from running efficient, sustainable businesses. The Aboriginal Business Development project provides extension support for landholder groups to build their management capacity, increase business profitability and improve environmental management practices, which helps raise people’s standard of living and promote the preservation of cultural heritage.

The Aboriginal Business Development approachThe Aboriginal Business Development project uses a bespoke and innovative approach to work with Indigenous landholders. This is characterised by:

• Targeted engagement that is only at the request of the Indigenous land owners• Developing trusted relationships that are underpinned by respect for each group’s particular

circumstances• Focusing on local delivery, using regional facilitators supported by a centralised project

management team• Uniting communities with shared goals that promote business profitability and sustainability• Emphasising and supporting ongoing corporate governance processes• Developing innovative training solutions that are focused on the business needs of a particular

group• Where specific issues need to be addressed, highly skilled consultants are used to overcome

obstacles of isolation, and to deliver training and other services in a local context.

Challenging issuesMany Indigenous landholders face unique challenges. These challenges are not typically encountered by mainstream land management businesses. This creates a more complex and challenging business environment, which requires careful management. The table below provides examples of how land management issues differ between mainstream and Indigenous land management businesses.

Criteria Mainstream Indigenous

Land ownership Owned outright Purchased by Government

Restrictions on use FewGovernment designed ‘deeds of purchase’ for the property stating its use and future purpose.

Access to finance Normal

Difficult Titles owned by Government and encumbrances on properties Approvals involve multi agencies are complex and bureaucratic

Reasons for business Economic returnMultiple - social, cultural, heritage, environmentalMeet Native Title requirements

Condition of land and infrastruture Looks for best quality Quality is not the primary reason for purchase

by Government

Decision making structures Autonomous

Government often has power to vetoComplex decisions due to communally owned assets

Skills Base Standard Transient community, low skills base

Income distributionReturn to shareholders & or wages

Largely welfare dependant

Sustainable agriculture - why it differs for indigenous communities

The Aboriginal Business Development project is a client-focused service. It is only engaged on the invitation of indigenous landholders who commit to improving the profitability and sustainability of their properties.

Aboriginal Business Development – Delivering tangible changeThe Aboriginal Business Development project has a common sense approach to creating tangible change. Built on a foundation of robust relationships, properties and businesses are gradually rebuilt with a clear focus on sustainability and profitability. This results in significant and beneficial life changes for people and their communities. Improved profitability and the opportunity for gainful employment have a positive economic impact in the local community. This flows through to the wider regional and state economy as a whole.

As business knowledge develops and groups become more familiar with mainstream financial and marketing systems, Indigenous land management enterprises are able to operate confidently in the mainstream business environment, and engage the wider community. In addition, the social, economic and environmental gains are substantial and deliver positive intergenerational change for community groups.

Targeted and client focused

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Aboriginal Business Development Economic Development process

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Governance• Providing up front or ongoing governance

training and facilitationPlanning• Preparing business and strategic plans with

Indigenous held properties• Assists with developing property

management plans• Assists with developing alternative land use

options• Builds land management capacity through

planning

• Assists with planning infrastructure/capitalprojects e.g. buildings, office support, fencing,equipment, water points, purchase of stock, etc

• Assists with property specific grant fundingapplications

Training• Identifying training needs• Co-ordinating required training with people and

• Liaising with training providers e.g. TAFEKey roles• Providing access to Governance training

• Developing KPIs (Key Performance Indicators)

• Advising on commercial arrangements• Assisting with Board and AGM procedures• Advises on financial performance of farming

Baseline assessment and measuring change

Scoping session with existing groups (owning agricultural land)• Membership list?• Financials debts/loans?• Share farming/cash flow?• Who purchased - when?• Title search• ORIC?state compliance• Deeds of purchase

Formation of a new group (planning to obtain agricultural land)

• Vision• Rulebook• Constitution• Membership• Board• Registration

Property AssessmentEnvironmental Management Plan (EMP)/Ecologically Sustainable Rangeland Management (ESRM)

Business Planning (3-5 years) • Skills analysis/audit• Property vision• Property and work plans

Funding Applications• Natural resource Management (NRM) diversification • Infrasturtcure grants• Securing current commercial cxontracts • Share Farming

YEAR 1: Implementation of Business Plan & any grants received• Board Management • AGM & Review • 12 month Engagement Plan

YEAR 3: Review & Monitoring• Board Management • AGM & Review • 12 month Engagement Plan

YEAR 2: Review & Monitoring• Board Management • AGM & Review • 12 month Engagement Plan

Governance & Training

Governance & Training

Governance & Training

Governance & Training

Governance & Training

Governance & Training

Governance & Training

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Provides agricultural and pastoral mentorin g and adviceIdentifies funding streams for busines s developmentProvides independent advice on commercial farming arrangements, new or existingRe-negotiation of Indigenous held pastoral leases post 2015

Legal

Project activities

Aboriginal Business Development activities are tailored suit the needs of the particular community. Key components of these activities include:

S u c c e s s Sustainable economic outcomes

The Western Australia Aboriginal beef herd turn-off has increased to over 17,000 head per annum from 1,500 when the Aboriginal Business Development project began. Most properties have reached their potential carrying capacity whilst others have exceeded it. Support from the Aboriginal Business Development project has led to stock being more effectively managed and counted. In response to this, there has been a sharp decline in animal welfare incidents from high risk offenders to almost nonexistent. Significant investments infrastructure have occurred and Aboriginal employment has increased

Station viability before and after DAFWA involvementproperties

(Community and business)

for business development

business

Since its launch in 1996, the Aboriginal Business Development project has received a number of awards and recognitions for its innovative social economic and community development program:

• 2003 State-West Business Achievement Awards

• 2004 Churchill Fellow Aboriginal Business Development Officer Kim Carter, Indigenous Agricultural Development

• West Australia Premiers Award for ‘Excellence in Public Sector Management’

• 2007 Australian Prime Ministers Award for ‘Excellence in Public Sector Management’

• 2008 Office of Multicultural Affairs, Award for ‘Services to the Community’

• 2008 visit to activities in the Kimberley by WA State Minister for Agriculture and Federal Minister for Agriculture, Fisheries and Forestry.

• 2010 West Australia Premier’s Award ‘Excellence in Public Sector Management’

• 2010 Great Southern Development Commission’s Medal for “Excellence in NRM” awarded to Kelly Flugge of Aboriginal Business Development, Southern Region

• 2010 Hosting a visit from ten South Australian Aboriginal people to see how the project operates

• 2010 Senior staff represent Western Australia on the National Working Group for Indigenous Participation in NRM and Primary Industries

• 2011 Australian Economic Development (Indigenous) Award

• 2012 Hosting five International Research Fellows from Africa to provide input to their study tour researching adaptation of farm businesses to manage financial, environmental and social consequences of drought

Award-winning projects