INTHEBLACK August 2025 - Magazine - Page 17
MY CHALLENGES
From natural disasters to AI
In the past five years, Norco has undergone
significant change. The co-operative has
delivered more profit in that period than
the prior 20 years cumulatively. This has
occurred even while dealing with the
devastating Lismore flood in 2022. We had
to rebuild our ice-cream factory — with
support from government — and it’s only
been back in operation for 18 months.
The flood is still very fresh in the memories
of Norco staff and our farmers, many of
whom had to rebuild their homes.
Flood mitigation is something that’s very
high on our risk register, but the dairy
industry itself has other difficulties. The milk
pool is declining in Queensland and northern
NSW. A lot of farmers are exiting the dairy
industry. That means that we have to access
more milk from Victoria where there is
a larger pool.
We are looking at opportunities to support
farmers at ground level. We offer a cow
financing program, and we have a whole
range of programs to encourage our farmers
to stay in the dairy industry. It is incredibly
hard work being a dairy farmer. They get
up at 4am in the morning, milking in the
morning and the afternoon, 365 days a year.
To continue supporting our farmers, and to
enable the co-operative to sustain its growth
trajectory, we need to do things differently
than we have in recent years. My role is
critical to help Norco look to the horizon.
From June to August 2025, Norco is sending
me to California for the Stanford Executive
Program, because the company understands
that the CFO role goes beyond just numbers.
The other major challenge is the
evolution of artificial intelligence (AI).
The transformational aspect of AI is being
talked about extensively. At Norco, we’re
beginning its implementation as a forecasting
tool, but the real challenges relate to cost
and culture.
The CFO matters on the AI journey
because we’re the only function that touches
every part of the business and asks the
uncomfortable questions. AI is a strategic
investment with measurable value, but it
needs to be supported with data governance,
risk and control, and it has to have people
and culture planning wrapped around it
in order to ensure success. ■
FINANCIAL RISK
AND RESILIENCE
INTHEBLACK: Financial risk and resilience: Laura Wedmaier FCPA
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