WEBVTT - Halter’s $1B USD “farm operating system” 0:00:03.560 --> 0:00:07.280 Gorakoto. Welcome to Shared Lunch. I'm Garth Brain today I'm 0:00:07.320 --> 0:00:07.920 at Holter. 0:00:08.360 --> 0:00:08.520 Now. 0:00:08.560 --> 0:00:10.520 Halter is not a name that you will see on 0:00:10.600 --> 0:00:13.280 the nz X, but it is a name that's on 0:00:13.320 --> 0:00:16.880 the lips of people who follow startups, especially after its 0:00:16.880 --> 0:00:21.079 news that it cited a valuation of one billion US 0:00:21.120 --> 0:00:25.200 dollars in its latest capital rays a unicorn status the 0:00:25.280 --> 0:00:28.880 Kiwi Aqreitech. What's the deal there? Let's go find out. 0:00:29.360 --> 0:00:32.639 But first, there's always some important information you always need 0:00:32.680 --> 0:00:34.320 to keep in mind when investing. 0:00:34.560 --> 0:00:37.120 Investing involves the risk you might lose the money you 0:00:37.159 --> 0:00:40.440 start with. We recommend talking to a licensed financial advisor. 0:00:41.200 --> 0:00:45.000 We also recommend reading product disclosure documents before deciding to invest. 0:00:45.280 --> 0:00:47.680 Everything you're about to see and here is current at 0:00:47.680 --> 0:00:48.519 the time of recording. 0:00:48.800 --> 0:00:51.640 Well, I'm inside here at Halter with Andrew Fraser, who 0:00:51.760 --> 0:00:55.000 is the resident of Halter, which is just a very 0:00:55.200 --> 0:00:57.800 large and ostentatious title. We'll get into what that means, 0:00:58.520 --> 0:01:00.639 but tell me about what we see seeing here. This 0:01:00.680 --> 0:01:04.720 is the evolution of the collar that this business is 0:01:04.760 --> 0:01:05.160 based on. 0:01:05.240 --> 0:01:07.520 Right, Yeah, So we've got the kind of five of 0:01:07.520 --> 0:01:10.640 our iterations of the Holter coller. It all started with 0:01:10.920 --> 0:01:14.880 a system of lunchbox good Kiwi product of course, and 0:01:14.959 --> 0:01:18.280 essentially one controller for one cow. And you can see 0:01:18.280 --> 0:01:21.679 the evolutions through the ages. Our first true collar here, 0:01:22.120 --> 0:01:24.679 our first commercial collar there, which was on our first 0:01:25.319 --> 0:01:28.320 you know, first ten thousand cows or so, our P 0:01:28.440 --> 0:01:30.200 four collar which is the one that I'm holding here 0:01:30.240 --> 0:01:32.440 today as well, and then the next generation as well, 0:01:32.800 --> 0:01:34.880 P five just been launched in the last couple of 0:01:34.880 --> 0:01:37.399 months as well. So really the history of the Halter 0:01:37.480 --> 0:01:38.759 coller altogether. 0:01:38.760 --> 0:01:40.160 Nine years, all in one spot. 0:01:40.640 --> 0:01:42.560 Let's hear all about it up the great looking forward 0:01:42.560 --> 0:01:42.760 to it. 0:01:46.319 --> 0:01:51.800 So, Andrew Fraser, your title Halter is President, Yes, which 0:01:51.840 --> 0:01:54.240 sounds a little grandiose. Do you really tell me all 0:01:54.280 --> 0:01:55.880 about that? Is that like a real pitch to the 0:01:55.960 --> 0:01:56.640 US market. 0:01:56.840 --> 0:02:00.600 It is a fun title to say with a straight face. Yes, 0:02:00.720 --> 0:02:02.320 look at the at the heart of it. It's it's 0:02:02.400 --> 0:02:05.560 quite a common title in the US tech space in 0:02:05.600 --> 0:02:07.960 particular often what it means, which it is in this 0:02:08.040 --> 0:02:10.160 case as well as I look after the broad the 0:02:10.200 --> 0:02:14.359 broader commercial side of the business, so marketing sales, our 0:02:14.400 --> 0:02:18.840 global operations, so our Australian teams, our US teams, support 0:02:18.960 --> 0:02:22.560 success those types of things. So I run the commercial side. 0:02:22.840 --> 0:02:25.320 Craig our founder CEO, much more focused on the product 0:02:25.320 --> 0:02:26.600 and engineering side of the business. 0:02:26.880 --> 0:02:28.760 So he's trying to make the tech work and you're 0:02:28.760 --> 0:02:29.720 trying to make it pay. 0:02:30.840 --> 0:02:34.120 Yes, great way of putting it now, he's bloody good 0:02:34.160 --> 0:02:36.120 at both sides of that, to be fair, but no, 0:02:36.160 --> 0:02:38.440 it's it's a it's a good, good team effort from 0:02:38.960 --> 0:02:39.919 us on the exec as well. 0:02:40.200 --> 0:02:42.760 And you're you joined Holter what in the last year 0:02:42.840 --> 0:02:43.399 or so? Right? 0:02:43.639 --> 0:02:48.480 Yes, joined last June, So just passed my one year anniversaryed. 0:02:47.880 --> 0:02:49.760 Halter, tell me about the T shirts? 0:02:50.040 --> 0:02:53.640 Yeah, so big tradition here is is once you pass 0:02:53.720 --> 0:02:57.480 the one year mark, you get a very beautiful Halter 0:02:57.760 --> 0:03:01.040 sweater which has got the whole sign and also your 0:03:01.120 --> 0:03:03.919 number on it. So I was I was very fortunate 0:03:03.919 --> 0:03:07.560 to be Halter one year maker number two hundred on 0:03:07.639 --> 0:03:08.520 the dot and. 0:03:08.480 --> 0:03:10.840 I guess the plan is to double that number in 0:03:10.880 --> 0:03:11.920 the next little while. 0:03:11.800 --> 0:03:15.560 Right, Yes, Yeah, we're in a big, big growth mode 0:03:15.800 --> 0:03:19.560 right now. We've been building and growing really well and 0:03:19.600 --> 0:03:22.120 I think with the Series D that enables us to 0:03:22.160 --> 0:03:25.560 continue to build more product to support our farmers, improve 0:03:25.600 --> 0:03:28.000 that build our customer side of the ORG as well 0:03:28.040 --> 0:03:30.760 to again to make sure that we are supporting and 0:03:30.840 --> 0:03:33.400 keeping our farmer and ranch and welfare at the heart 0:03:33.440 --> 0:03:36.160 of everything that we do too and really invest in 0:03:36.320 --> 0:03:38.600 both our core market of New Zealand, but then also 0:03:39.000 --> 0:03:40.839 more out in Australia in the US as well. 0:03:41.000 --> 0:03:42.760 I need to bring everybody in here and make sure 0:03:43.160 --> 0:03:45.120 they know what a Series D is and b they 0:03:45.160 --> 0:03:45.920 know exactly. 0:03:45.680 --> 0:03:49.640 What halted us. So you might have jumped up there, sorry, but. 0:03:49.680 --> 0:03:53.640 So Series D you're a company that's privately held, right, yes, 0:03:53.680 --> 0:03:56.400 and so that's a little something unusual for it, maybe 0:03:56.520 --> 0:03:59.720 for cheersis to be talking to because these no immediately 0:03:59.800 --> 0:04:03.120 envis stable opportunity for retail investors. It's all through kind 0:04:03.160 --> 0:04:05.480 of the wholesale side of things, and that's a pretty 0:04:05.480 --> 0:04:09.320 discrete market. Yeah. Yeah, but that's so you've effectively what 0:04:09.760 --> 0:04:11.760 in a series of raises. I think now you're up 0:04:11.760 --> 0:04:14.080 to about two hundred and eighty nine million dollars worth 0:04:14.120 --> 0:04:16.000 of capital that have been raised for the business. 0:04:16.240 --> 0:04:20.520 Yeah, that sounds about right. And so yeah, so the 0:04:20.520 --> 0:04:22.560 way that it's kind of worked is it as various 0:04:22.600 --> 0:04:27.080 milestones throughout the whole history, there have been these raises 0:04:27.160 --> 0:04:29.920 with investors, and I'd say especially a lot of those 0:04:30.000 --> 0:04:33.159 driven by some New Zealand investors, for example Ice House 0:04:33.200 --> 0:04:35.480 being a big driver of that. And this is our 0:04:35.720 --> 0:04:39.440 fourth of those, so ABCD and that's what we celebrated 0:04:39.640 --> 0:04:42.040 I think last week it was in terms of that 0:04:42.480 --> 0:04:45.560 new I guess influx of capital and belief in what 0:04:45.600 --> 0:04:46.400 we're doing as well. 0:04:46.720 --> 0:04:49.560 And with that, so one hundred and sixty five million 0:04:49.600 --> 0:04:52.640 New Zealand raised in that round. Yes, you don't normally 0:04:52.640 --> 0:04:53.880 go to an E round. 0:04:53.640 --> 0:04:57.320 Do you look never say never, And I'd say like 0:04:57.320 --> 0:04:59.600 air wall X is an interesting example. They've got a 0:04:59.680 --> 0:05:04.440 Kiwi co founder. They just closed their series if so 0:05:04.520 --> 0:05:08.240 you can still keep going. It's really up to what 0:05:08.320 --> 0:05:12.440 you need, how you're driving and you know, and and 0:05:12.560 --> 0:05:15.760 various growth metrics and things around that. But yeah, there's 0:05:15.760 --> 0:05:18.440 there's no real limit to the to the series that 0:05:18.480 --> 0:05:19.960 you get to. And I think that eli walal x 0:05:19.960 --> 0:05:23.120 one is a is a cool, cool example of Ossie 0:05:23.120 --> 0:05:26.480 and kiwikw co founders doing bloody good work at the 0:05:26.560 --> 0:05:28.000 at the global tech stage as well. 0:05:28.400 --> 0:05:31.120 So the tech behind Halter, Can you tell us a 0:05:31.160 --> 0:05:34.080 little bit about what is the problem you're trying to 0:05:34.120 --> 0:05:36.280 solve and what does it do Colter. 0:05:36.640 --> 0:05:39.680 At its heart, I'd say is an is an operating 0:05:39.720 --> 0:05:42.520 system for your farm and the primary way that we 0:05:42.560 --> 0:05:46.440 do that is through a collar for cows. It's it 0:05:46.520 --> 0:05:50.680 helps you with virtual fencing and virtual herding. So instead 0:05:50.680 --> 0:05:54.720 of seeing fences, now you're hearing fences if you're a cow. 0:05:55.200 --> 0:05:57.360 So what it means is you can draw the paddock 0:05:57.440 --> 0:05:59.240 or the area that you want your cow has kept 0:05:59.800 --> 0:06:02.760 and collar will kind of keep them in that. The 0:06:02.839 --> 0:06:05.159 virtual herding side of things is similar to that, but 0:06:05.200 --> 0:06:07.360 it actually moves your cows as well. So if you're 0:06:07.400 --> 0:06:10.080 a dairy farmer, the way that it works is you say, hey, 0:06:10.520 --> 0:06:12.920 you know, I want my cows at the dairy shehed 0:06:13.040 --> 0:06:15.640 at four thirty am to start the milking and they 0:06:15.640 --> 0:06:19.320 will be there waiting for you when you arrive. And 0:06:19.400 --> 0:06:21.200 as I said, that all happens kind of via sound 0:06:21.279 --> 0:06:24.839 and vibration. We also help you grow and graze more 0:06:24.880 --> 0:06:27.599 pasture too, So because of how you can move the 0:06:27.640 --> 0:06:30.880 cows and keep the cows and our past GAO metrics 0:06:30.880 --> 0:06:33.159 that we supply in things as well, we help you 0:06:33.200 --> 0:06:35.440 grow and graze more grass, which means that you either 0:06:35.480 --> 0:06:39.040 get more milk production, so that eating more grass, they're 0:06:39.080 --> 0:06:41.440 making more milk, or on the beef side of things, 0:06:42.200 --> 0:06:46.599 that eating more grass so they are getting fatter, which 0:06:46.600 --> 0:06:49.479 you get money from as well. Other things the colar 0:06:49.520 --> 0:06:52.520 can do is you know, heat detection, so it helps 0:06:52.520 --> 0:06:56.160 with the reproduction side of things, the health side, so 0:06:56.480 --> 0:06:58.479 we give early warning to say, hey, you might have 0:06:58.480 --> 0:07:02.040 a lame cow or a sick how and a lot 0:07:02.040 --> 0:07:04.240 of other things from there. But at the heart of 0:07:04.240 --> 0:07:06.760 it, it really is that kind of operating system for cows. 0:07:07.200 --> 0:07:09.720 I guess people probably don't understand quite how complicated and 0:07:09.720 --> 0:07:13.200 how many decisions that a farmer in their business has 0:07:13.240 --> 0:07:17.040 to make right that they're literally trying to get very 0:07:17.120 --> 0:07:20.480 very fine judgments out of the soil, the ground, the pasture, 0:07:20.800 --> 0:07:24.160 the weather conditions, the condition of whatever mobile herd that 0:07:24.200 --> 0:07:29.520 they're running. All of that is pretty tricky. So I mean, 0:07:29.520 --> 0:07:30.480 how do they do it without this? 0:07:31.280 --> 0:07:34.960 Yeah? Oh, look, I'd say as a starting point, I 0:07:35.000 --> 0:07:40.400 think farmers are remarkable folks and the care that they 0:07:40.680 --> 0:07:43.760 universally have for their land and for their animals is 0:07:45.080 --> 0:07:48.600 amazing to see. And maybe if I slightly diverge and 0:07:48.600 --> 0:07:50.440 then I promise I'll come back and answer the question like, 0:07:51.280 --> 0:07:54.120 I didn't grow up on a farm, but my cousin, 0:07:54.600 --> 0:07:56.920 he's my best mate. He's a dairy farmer, and so 0:07:57.200 --> 0:07:59.720 kind of put myself through university milking with him in 0:07:59.760 --> 0:08:02.600 the in the Uni holidays, and even in my first job. 0:08:03.640 --> 0:08:05.280 You know, if I had a pretty tough week, I'd 0:08:05.320 --> 0:08:07.240 go down and milk with him, and that was kind 0:08:07.240 --> 0:08:09.720 of my happy place. And so I'd been able to 0:08:09.720 --> 0:08:13.800 see firsthand how hard farmers are working and how much 0:08:13.840 --> 0:08:16.880 they are they are thinking about this right so right now, 0:08:16.880 --> 0:08:19.440 they might have a big whiteboard and their cowshed measuring 0:08:19.480 --> 0:08:22.480 their round length, or that going out with a plate 0:08:22.520 --> 0:08:25.680 meter which measures their grass growth after every feed and 0:08:25.680 --> 0:08:28.920 before every feed to kind of understand these things. Or 0:08:28.960 --> 0:08:31.880 they're spending hours a day with reels and standards, so 0:08:32.800 --> 0:08:37.520 you know, like pigtails and electric wire to put up 0:08:37.520 --> 0:08:39.760 around their farm to kind of get the optimal amount 0:08:39.840 --> 0:08:42.360 of grass and each break for each mob of cows. 0:08:42.840 --> 0:08:47.480 So incredibly laborious, and you know, I like to think 0:08:47.480 --> 0:08:51.920 that no one goes into into farming to follow cows 0:08:52.200 --> 0:08:55.959 behind on a four by four or to put up reels. 0:08:56.200 --> 0:08:58.679 They go there to get the most out of their 0:08:58.679 --> 0:09:01.640 grass or to you know, get the most milk production, 0:09:01.840 --> 0:09:05.400 or to spend more time with their animals and their land. 0:09:06.320 --> 0:09:09.720 And so we really enable that in a much quicker, 0:09:10.520 --> 0:09:14.520 more accurate way via our app, which is kind of 0:09:14.520 --> 0:09:15.880 part of that whole system as well. 0:09:16.280 --> 0:09:19.199 And I guess so it's not just a device, but 0:09:19.240 --> 0:09:22.720 then obviously it's a series of subscriptions and data that 0:09:22.760 --> 0:09:25.360 sit behind it that are possibly where some of the 0:09:25.440 --> 0:09:26.520 values coming from here. 0:09:26.720 --> 0:09:30.160 Yeah, and for them spot on and I'd say that 0:09:30.280 --> 0:09:33.800 the yeah, it's the reason they call it an operating 0:09:33.840 --> 0:09:37.319 system is it really is a hardware plus software solution 0:09:37.640 --> 0:09:41.800 for the farmer. And so the app it's been it's 0:09:41.840 --> 0:09:44.280 been built to be as easy to use for farmers 0:09:44.280 --> 0:09:48.160 as possible. We've got one of my favorite farmers, Pete Morgan, 0:09:48.240 --> 0:09:51.400 his ninety i think ninety three year old mum sits 0:09:51.440 --> 0:09:53.720 there at home and kind of is using the app 0:09:53.720 --> 0:09:55.400 and having a look at it where all the cows are. 0:09:55.840 --> 0:09:57.400 The flip side of it is we've got a lot 0:09:57.440 --> 0:10:01.240 of farms. There's a guy ross Minson and Canterbury. His 0:10:01.360 --> 0:10:04.800 daughter's at boarding school and she's calling him every night 0:10:04.800 --> 0:10:07.000 to be like, what's happening with this cow or why 0:10:07.080 --> 0:10:09.040 is this cor to break? And I just I love 0:10:09.080 --> 0:10:12.280 it and it really is that kind of enabler for 0:10:12.320 --> 0:10:14.920 all generations of farmers to be able to kind of 0:10:15.000 --> 0:10:17.959 get a view of their farm really quickly and then 0:10:17.960 --> 0:10:22.760 make really strong decisions around productivity and sustainability really easily 0:10:22.760 --> 0:10:23.319 as well. 0:10:23.160 --> 0:10:25.839 Because it's probably not replacing actually being on the land, 0:10:25.880 --> 0:10:28.120 walking around taking a look at the conditions yourself. 0:10:28.200 --> 0:10:32.800 Yeah. Absolutely, And i'd say, you know, great farmers are 0:10:32.840 --> 0:10:35.880 on the farm more with Halter, right, So they are 0:10:36.040 --> 0:10:39.080 when they're coaching their their farm, their farm managers or 0:10:39.080 --> 0:10:42.600 farm workers, they are instead of having to rush to 0:10:42.679 --> 0:10:45.120 do everything, and it's all very much like do this, 0:10:45.240 --> 0:10:47.559 then do that, then do that. You can actually step 0:10:47.600 --> 0:10:49.920 back and I think you can actually take back control 0:10:49.960 --> 0:10:53.160 of farming as well. So the love and life they're 0:10:53.160 --> 0:10:55.800 getting back on farm, we've heard from a number of 0:10:55.880 --> 0:10:58.800 farmers that it's brought that kind of joy back back 0:10:58.840 --> 0:11:01.880 to farming for them. Another thing that I'd say we've 0:11:01.880 --> 0:11:05.400 seen here in farming in New Zealand in general is 0:11:05.559 --> 0:11:07.680 a shift of young people away from farming as a 0:11:07.720 --> 0:11:12.040 career because it is it's tough hours, right, it's early starts. 0:11:12.480 --> 0:11:17.240 It's hard work, and I think this is really we're 0:11:17.240 --> 0:11:20.640 seeing much more and more younger people come into this. 0:11:21.120 --> 0:11:23.319 We hear a lot of stories about, you know, leaving 0:11:23.320 --> 0:11:26.440 a farm and wanting to work on other whole to farms, 0:11:26.520 --> 0:11:28.520 you know, So it's kind of it's a retention tool 0:11:28.559 --> 0:11:31.800 in the industry as well. And that's all because, as 0:11:31.800 --> 0:11:34.319 I say, it takes those jobs that aren't value adding 0:11:34.400 --> 0:11:38.600 jobs away and it replaces it with a great toolkit 0:11:38.880 --> 0:11:40.760 that brings you closer to the land and closer to 0:11:40.800 --> 0:11:41.400 your animals. 0:11:41.480 --> 0:11:43.880 I'm thinking about that example you gave before about the 0:11:44.880 --> 0:11:49.200 young woman talking to a dad. I imagine that for 0:11:49.240 --> 0:11:51.800 a lot of farmers, that's great to hear. A lot 0:11:51.880 --> 0:11:54.000 of them are probably watching their kids saying I'm not 0:11:54.120 --> 0:11:58.320 interested remotely in taking on millions tens of millions of 0:11:58.360 --> 0:11:59.960 dollars worth of debt to try and run this place. 0:12:00.240 --> 0:12:02.600 And I don't know, maybe I'm just not that familiar 0:12:02.679 --> 0:12:04.400 with all of the stuff that you're doing on farm. 0:12:05.360 --> 0:12:07.960 So the app is a way to what try and 0:12:08.000 --> 0:12:10.440 give them another doorway into that spot on. 0:12:11.679 --> 0:12:15.360 Yeah, And I think that's look I'm I reckon, I'm 0:12:15.360 --> 0:12:19.600 the luckiest person at Halter. I'm on the road at 0:12:19.679 --> 0:12:22.200 least every second week right now, every week with our 0:12:22.240 --> 0:12:26.880 teams on farm and just listening to our farmers and 0:12:26.920 --> 0:12:29.200 their stories. And you know, for some it's like what 0:12:29.240 --> 0:12:31.120 brought them into Halter. For some, it's what keeps them 0:12:31.120 --> 0:12:33.880 at Halter. For others, it's you know, potential new business 0:12:33.920 --> 0:12:36.080 to say what Halter could mean for them. And I 0:12:36.160 --> 0:12:38.240 do think that that succession piece is a big one 0:12:38.320 --> 0:12:40.960 for a lot of farmers, you know, in terms of 0:12:41.280 --> 0:12:44.200 bringing that next generation on, giving them the tools and 0:12:44.200 --> 0:12:47.560 the excitement about what it looks like. For some, it's 0:12:47.760 --> 0:12:50.199 you know, extending farming. I was with a lovely couple 0:12:50.240 --> 0:12:52.679 down in the Bay of Plenty recently who were in 0:12:52.720 --> 0:12:56.160 their sixties, and they were like, we love farming, but 0:12:56.200 --> 0:12:58.199 we know that, you know, like when I've got to 0:12:58.240 --> 0:12:59.760 I've got to get up on a step ladder to 0:12:59.760 --> 0:13:03.400 do my like the reproduction side of business, and I 0:13:03.440 --> 0:13:05.839 don't like doing it at this age, and so like 0:13:06.000 --> 0:13:08.240 this will keep us in farming for another five years. 0:13:08.559 --> 0:13:11.280 And I just, you know, it's pretty special being able 0:13:11.320 --> 0:13:15.160 to get out and hear those stories for an industry 0:13:15.200 --> 0:13:17.480 that's so important as a key where you're to New 0:13:17.600 --> 0:13:20.640 Zealand pretty special to kind of hear how alter can 0:13:20.720 --> 0:13:22.680 kind of make that improvement from people's life. 0:13:22.840 --> 0:13:25.480 What sort of penetration have you got then into New 0:13:25.559 --> 0:13:27.840 Zealand obviously it's the main market, it's the home market. 0:13:27.880 --> 0:13:28.600 Where are you at? 0:13:28.880 --> 0:13:33.160 Look, what I'd say is we're just getting started in 0:13:33.240 --> 0:13:36.480 certain in certain communities, in certain kind of places, we've 0:13:36.520 --> 0:13:39.240 got you know, one in every three farms, for example. 0:13:39.360 --> 0:13:42.560 In others it's a lot earlier, a lot earlier stage, 0:13:42.800 --> 0:13:44.600 and we're really seeing it. It is that kind of 0:13:44.640 --> 0:13:50.040 community growth almost is what we're seeing. So farmers trust 0:13:50.320 --> 0:13:52.880 and believe in other farmers, and so what you start 0:13:52.880 --> 0:13:54.840 to see is, you know, you get a few hold 0:13:54.840 --> 0:13:57.559 of farms, then the next or ahbor kind of comes over, 0:13:57.640 --> 0:13:59.719 has a bit of a look and sees what the 0:13:59.720 --> 0:14:02.200 store warriors and gets a bit excited, and then you 0:14:02.320 --> 0:14:04.200 kind of get that farm and then that farm, and 0:14:04.240 --> 0:14:09.040 so there's this big almost network effect there of farms 0:14:09.360 --> 0:14:12.920 seeing the products, seeing the impact, seeing you know, the 0:14:13.000 --> 0:14:14.959 mum and dad on the netball courts on the Saturday, 0:14:15.000 --> 0:14:17.640 whereas previously you'd only ever have one parent and now 0:14:17.679 --> 0:14:20.000 they can both get off farm or going to Fiji 0:14:20.040 --> 0:14:22.000 for a week for their first holiday and years because 0:14:22.040 --> 0:14:24.680 they can still monitor, so they've still got that trust. 0:14:24.720 --> 0:14:27.840 But then you know their farm manager can kind of 0:14:27.920 --> 0:14:31.000 or farm workers can do the work, and that's our 0:14:31.040 --> 0:14:34.600 biggest thing. So what we'd see is in areas where 0:14:34.640 --> 0:14:37.560 we've got that minimum penetration where we start to see that, 0:14:37.760 --> 0:14:39.960 that's where you really get that network effect and get 0:14:39.960 --> 0:14:41.880 that really rapid growth that we've been seeing. 0:14:42.040 --> 0:14:44.160 Would you expect to see the same sort of thing 0:14:44.280 --> 0:14:47.760 in the US, though much bigger market, very very different situation, 0:14:47.880 --> 0:14:50.800 different farming systems, different culture. How is it going to 0:14:50.880 --> 0:14:53.240 go there? It's going really well so far. 0:14:54.400 --> 0:14:58.800 At the heart of it, it's a universal truth. I 0:14:58.800 --> 0:15:01.600 think that farmers and ranches over there, we use the 0:15:01.680 --> 0:15:05.080 term ranchers farmers are a very different thing over there. 0:15:05.320 --> 0:15:07.520 Farmers and ranches care for their land, care for their 0:15:07.560 --> 0:15:09.880 animals as a starting point, and so at the heart 0:15:09.960 --> 0:15:14.760 we still see that. I have been in many conversations 0:15:14.840 --> 0:15:17.800 with US ranches on the ground over there and they 0:15:17.800 --> 0:15:21.440 actually go very similarly to a New Zealand farmer just 0:15:21.480 --> 0:15:24.120 from a few years ago. So the kind of the 0:15:24.200 --> 0:15:27.440 understanding of the product is still in its infancy it's 0:15:27.480 --> 0:15:30.000 not like here where we're at field days a few 0:15:30.000 --> 0:15:32.560 weeks ago. Every farmer that came into the tent knew 0:15:32.560 --> 0:15:35.040 what halter was, knew a little bit about it, knew 0:15:35.080 --> 0:15:37.160 what kind of value it could provide. We're not at 0:15:37.160 --> 0:15:40.200 that stage yet in the US. There's still that educational piece, 0:15:40.760 --> 0:15:44.320 educational phase to it. The other thing about the US 0:15:44.680 --> 0:15:47.240 which I found interesting is we're pretty much selling to 0:15:47.320 --> 0:15:52.080 beef farms only. Something like ninety five percent of US 0:15:52.200 --> 0:15:55.680 dairy is not pasture based. So we're a pasture based company. 0:15:55.800 --> 0:15:58.720 We help cows on grass. Ninety five percent of cows 0:15:58.760 --> 0:16:01.040 in the dairy industry in the USA are not on grass. 0:16:01.080 --> 0:16:03.960 They're in barns or feed lots, and so that's not 0:16:04.000 --> 0:16:07.040 really our target market over there. It's really those those 0:16:07.080 --> 0:16:10.600 classical cows on the range. That's who we're dealing with, 0:16:10.640 --> 0:16:12.920 that kind of the cattle side of things. There so 0:16:12.960 --> 0:16:15.360 a few differences there, but on the whole we're actually 0:16:15.360 --> 0:16:17.840 seeing that you know, a conversation in the US is 0:16:17.880 --> 0:16:20.120 not so dissimilar to a conversation in New Zealand. 0:16:20.200 --> 0:16:22.120 But there'd be a lot of feed lot feeding out 0:16:22.200 --> 0:16:24.160 for those beef cattle as well, right so I wonder, 0:16:24.240 --> 0:16:26.880 I mean, how big is the market there, given that 0:16:26.920 --> 0:16:29.400 pasture doesn't have the same kind of role in the US, 0:16:29.600 --> 0:16:32.200 how big is that total addressable market. 0:16:32.480 --> 0:16:34.560 It's a big one, so i'd say for the US 0:16:34.600 --> 0:16:36.680 it's kind of that one and a half two billion 0:16:36.720 --> 0:16:40.920 dollars of total addressable market, so maybe one and a 0:16:40.960 --> 0:16:44.600 half double New Zealand. That's why we are at a 0:16:44.840 --> 0:16:49.480 very privileged good position here in New Zealand with our 0:16:49.560 --> 0:16:53.160 brilliant pasture based farmers and you know on the dairy 0:16:53.200 --> 0:16:55.320 side and the beef side of things that you know, 0:16:55.360 --> 0:16:58.120 we are a startup that was able to build our 0:16:58.160 --> 0:17:02.480 product in a really really big, advanced market. Like i'd say, 0:17:02.720 --> 0:17:05.480 New Zealand farmers are the best farmers in the world 0:17:06.040 --> 0:17:08.399 in many respects and when it comes to pasture based farming, 0:17:08.680 --> 0:17:10.959 and it's a really really big market. So we were 0:17:11.000 --> 0:17:13.240 lucky we could grow here, we could test our product 0:17:13.240 --> 0:17:16.159 here and it's not puny or irrelevant compared to the 0:17:16.160 --> 0:17:19.320 rest of the world. So New Zealand core market. But yeah, 0:17:19.440 --> 0:17:23.280 US beef it is big. What I would say is, yes, 0:17:23.320 --> 0:17:26.359 there can be some like feedlock finishing. I'm getting really 0:17:26.359 --> 0:17:28.920 into the farming minutia, so bear with me. You can 0:17:28.920 --> 0:17:31.679 get some feedlot finishing, so a cow might live, you know, 0:17:31.800 --> 0:17:34.680 ninety five percent of their life on grass and then 0:17:34.720 --> 0:17:37.119 finish at a feed lot. But we're still working with 0:17:37.200 --> 0:17:40.240 it during that majority of life, you know, out on 0:17:40.280 --> 0:17:45.520 the ranges, out on the prairies, really extensive beef farms. 0:17:45.240 --> 0:17:47.400 That's really the core of what we're doing over there 0:17:47.400 --> 0:17:47.960 in the US. 0:17:48.119 --> 0:17:50.560 Does the technology perform the same on the ground there 0:17:50.560 --> 0:17:51.200 that it would here. 0:17:51.800 --> 0:17:55.200 Yeah, it's the same collar, so we use the same 0:17:55.280 --> 0:17:58.640 collar on a cow, regardless of it's New Zealand, Australia, 0:17:58.640 --> 0:18:01.880 the US beef tear. It's all the same. So at 0:18:01.880 --> 0:18:04.160 the heart of it, the hardware is the same, software 0:18:04.240 --> 0:18:07.359 largely the same. You know, they use different language for 0:18:07.400 --> 0:18:11.040 certain things farmers, ranches, paddocks, pastures, all of those things. 0:18:11.080 --> 0:18:13.080 So there's a few little tweaks there, but for the 0:18:13.119 --> 0:18:17.040 most part, it's all the exact same piece. I'd say 0:18:17.040 --> 0:18:19.280 the big difference is there, like us on a ranch 0:18:19.320 --> 0:18:23.480 in Wyoming recently, which was one hundred thousand hectares. Now, 0:18:23.720 --> 0:18:26.960 you know, a typical dairy farm in the Wykado is 0:18:27.359 --> 0:18:31.920 maybe a hundred hectares, so you know, a thousandfold difference 0:18:32.760 --> 0:18:35.600 in size, but on the whole, the product's still doing 0:18:35.640 --> 0:18:38.720 the same thing. We're still supporting pasture based animals. You 0:18:38.800 --> 0:18:40.760 might go at a slightly different manner, but at the 0:18:40.800 --> 0:18:43.040 heart it's quite nice that it's all that same piece. 0:18:43.119 --> 0:18:44.919 There are other countries in the world where pasture is 0:18:44.920 --> 0:18:47.800 a big deal, like Ireland is one example, big dairy industry, 0:18:47.960 --> 0:18:50.680 very similar to New Zealand. Where's that on the list? 0:18:51.560 --> 0:18:54.320 Yeah, oh, there are some fantastic other markets that I 0:18:54.320 --> 0:18:57.520 think we'll get to one day. I know it's a 0:18:57.520 --> 0:18:59.439 bit of a cheesy answer, but you know there's a 0:18:59.440 --> 0:19:01.600 lot of cows in New Zealand, Australia, in the US, 0:19:02.520 --> 0:19:07.280 and so that's very much our priority right now is 0:19:06.680 --> 0:19:10.480 is is doing a really really good job in those 0:19:10.560 --> 0:19:14.080 three markets, and then yes, other markets will come, but yeah, 0:19:14.119 --> 0:19:16.680 we've we've we've still got a lot of a long 0:19:16.720 --> 0:19:18.439 way to go in those three markets to make it 0:19:18.560 --> 0:19:20.800 really good for our for our farmers and for our customers. 0:19:20.840 --> 0:19:22.719 So yeah, I'm just trying to understand a little bit 0:19:22.800 --> 0:19:26.159 as well, like most people, what it means as a 0:19:26.200 --> 0:19:30.760 company that's a startup to reach a point where you 0:19:30.800 --> 0:19:33.320 can say you're you're worth a billion dollars. That's kind 0:19:33.359 --> 0:19:36.600 of a big moment for a startup. Right Unicorn status, 0:19:36.640 --> 0:19:40.280 I think is what we call it. Yeah, how do 0:19:40.320 --> 0:19:43.480 you put some confidence around that number? 0:19:44.000 --> 0:19:48.879 Yeah, I would say there's there's probably the The internal 0:19:48.920 --> 0:19:53.919