Draft 30 July 2011 SIR SIDNEY KIDMAN
Draft 30 July 2011 SIR SIDNEY KIDMAN: AUSTRALIA’S CATLE KING AS PIONEER OF ADAPTATION TO CLIMATIC UNCERTAINTY Leo Dobes1 Abstract There is little direct evidence about the business model used by the legendary cattle king, Sir Sidney Kidman. Kidman‟s properties were generally contiguous, forming chains that straddled stock routes and watercourses in the most arid zone of central Australia, were invariably stocked at less than full capacity; providing access to the main capital city markets via railways, as well as a wealth of information on competing cattle movements. This combination of features effectively afforded strategic flexibility in the form of so-called „real options‟, especially during severe drought events. Alternative explanations such as the vertical integration of Kidman‟s operations, and spatial diversification of land holdings, offer only partial insights at best. Faced with a highly variable and unpredictable climate, combined with erosion and the spread of rabbits, Kidman provides a highly pertinent example of successful human adaptation to exogenous shocks such as climate change by avoiding expensive deterministic responses. Key words: climate change, adaptation, real options, drought, rangelands Introduction Sir Sidney Kidman (1857-1935) was a controversial figure. Born in modest circumstances in Adelaide, he eventually came to control, both directly and indirectly, a vast pastoral empire that stretched north-south across the rangelands of central and northern Australia, with further holdings in the Kimberley region of Western Australia. Feted in England as a fabulously wealthy Cattle King, he also attracted criticism in Australia for trying to recruit London omnibus drivers as stockmen. During World War I, he made a name for himself nationally by donating fighter planes and other equipment to the armed forces.
[Show full text]