StockX Limited | Disruptive technology unlocking value for farmers

StockX founders set out to transform the agriculture sector and now, two years down the track, the online stock trading platform is proving its innovation with not just one but two innovation awards.

Since launching two years ago, StockX has 2500 registered users, from every region of rural New Zealand, with every class of store stock traded. Some farmers are using StockX exclusively for all their trading, while others have ‘dipped their toe’ with small transactions. And most are somewhere in between.

The premise of StockX is to provide Kiwi farmers with an efficient, cost effective and secure way to trade livestock, on their terms. Registration is free, as is listing of stock to sell or buy. With a commission fee of 2.5 percent, only charged on successful sales, and savings on yarding and transport to sales, using StockX was “a compelling value proposition” when compared to the traditional, high cost agency and/or sale yards model, says Jason Roebuck, StockX managing director.

“StockX is proving that it can add value to a farming enterprise, allowing farmers to capture value and reallocate capital to grow, pay down debt, maybe add in an extra crop rotation or another stock line to accelerate their business.

“Really it’s about unlocking value that would otherwise be a cost.”

Transparency is a strong selling point. Farmers deal directly with other farmers, ensuring communications are clear. Buyers pay the full transaction amount into a StockX trust account, funds are cleared before stock leaves the farm and the seller is not paid until the buyer is completely happy with the quality and tallies of the livestock they have received.

“Users are telling us that they love the transparency, are enjoying the openness of dealing directly without an intermediary, and the security too.”

Next up for the start-up company, is the launch of a Prime Stock platform on the site. StockX has been working with processors on the design and build to ensure it is “fit for purpose”.

Processors will create market orders for livestock, procuring to set specifications and from preferred regions. Farmers can then offer their stock against these market orders or create their own prime listing offering their stock to a processor of their choice, up to three processors or all processors. It opens both parties up to an ability to trade direct and to achieve enhanced market opportunities.

“The platform will mean that stock can be processed to meet needs in a timely, planned manner, with certainty for all parties.”

Although not yet launched, the processor platform technology took out Launch NZ Innovation Merit Award at Fieldays this year. StockX was also a Finalist in the New Zealand Hi Tech Awards and most recently won the Innovation Award at the Beef and Lamb New Zealand Sheep Industry Awards. It has recently been nominated for the New Zealand Hi-Tech Awards.

Dan Druzianic, Moore Stephens Markhams director, chairs the board of StockX. He believes that farming is just one of many industries that will be facing disruptive technology through innovative digital platforms.

“Business owners need to be considering how their industry will be disrupted, as it will happen, it’s just a matter of timing. It’s imperative to keep abreast of developments and anticipate what the impact is likely to be, and the speed of those changes is ever-increasing,” Dan cautions.

Mark Knofflock, also a Moore Stephens Markhams director, is responsible for providing accounting advice to StockX, guiding the firm in its financial reporting. He too acknowledges that technology adoption can have significant benefits for business success, and is keen to see how StockX continues to grow.