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Consulation backgrounder - dummy preso test
1. Beef + Lamb New Zealand
Farmer Consultation 2014
2.
3. THIS IS WHERE WE WORK
• Feed and forage
• Livestock and genetics
• Farming systems
• Land and water
• Markets and advocacy
• People and capability
• Forecasting and analysis
6. • Increased coordination
of market behaviour
• Efficient and aligned
procurement
• Sector best practice
The strategy outlines
actions under three
key themes:
7. RED MEAT PROFIT PARTNERSHIP
What is it?
RMPP is a unique partnership between farmers,
processors, banks and government
8. 88
THE RMPP INVESTMENT
$65.3m
Project split
6%
60%
31%
3%
Behaviour change Sector capability
Systems, Tools and Data Integration Production and Provenance
Systems & data
integration
Sector capability
Understanding
behaviour change
Production and
provenance story
9. B+LNZ GENETICS
B+LNZ
Genetics
Ovita
Research consortium
for past 10-years.
Developed technology
to predict genetic merit
from DNZ
SIL
NZ sheep genetic database
& evaluation system
R&D around trait value,
genetic evaluation of new
traits
B+LNZ Central Progeny Test
Research programme on 3
lowland & 2 new hill sites
For new trait evaluation &
across flock connections
Increased
investment in
beef genetics
10. PARTNERSHIPS AND LEVERAGE
• These two projects alone have allowed us
to leverage an additional $60 million from
the Crown
• Key partnerships with DairyNZ, Young
Farmers, FOMA, Primary ITO,
AgResearch, Agri-Women’s Development
Trust, Ballance Farm Environment Awards
11. R,D +E
• Research – feed and forage, livestock and
genetics in the hills
• Development – fact sheets, r&d briefs
• Extension – demonstration farms, field
days, E-diaries
12. MARKET ACCESS - TRADE POLICY
• Working with government to remove barriers to
New Zealand’s red meat exports
• About $350m paid annually in tariffs on New Zealand’s
meat exports; Japan ($93m), Korea ($61m), EU ($77m)
• B+LNZ advises government negotiators on Free Trade
Agreement priorities.
13. MARKET ACCESS - TECHNICAL
POLICY
• Biosecurity
– advising on Foot and Mouth preparedness
and TB free programme
• Animal Welfare
– supporting farmers to maintain NZ’s high
animal welfare standards
• Animal identification and tracing
• Food Safety
14. MARKET – TECHNICAL POLICY
• Advising and working with government on
Foot and Mouth preparedness
• Supporting farmers to maintain NZ’s high
animal welfare standards
• Food safety is a priority in our export
markets
15. ENVIRONMENTAL POLICY
• Water Allocation and Management
• International and national sustainability
• Climate change and Emissions Trading
• Environmental Leadership Forum
• Environmental Extension Manager
• LEP workshops in every region
16. MARKET DEVELOPMENT
What is it?
Develop a
preference for
specific NZ Meat
processors
products/brands
Develop a
preference for
NZ red meat
products
Identify the
opportunity
Market
Research
Country of
Origin
Joint
Promotion
Investment decisions are made with input from meat processors
through the Meat Promotion Group (MPG):
17. MARKET DEVELOPMENT
Country of origin promotion (examples)
In-store tasting in Germany
On TV with MOS Burger
Taiwan
Media briefing Japan
18. ECONOMIC SERVICE INFORMATION
AND ANALYSIS
• Information and analysis support decision-
making and sheep + beef policy positions
• Increasingly being reference to support
environmental policy
• Making complex data simple and providing
through the web and farmer presentations
• Sheep and beef farm survey underpins the
development of online benchmarking tools
21. RESERVES SPEND
• Red Meat Profit Partnership $3.7 million
• Leadership grants and scholarships
$425,000
• B+LNZ Genetic Engine upgrade $400,000
• B+LNZ website development and internet
tools $500,000
• MIE (awaiting business plan)
22. NEW ZEALAND MEAT BOARD
• B+LNZ Genetics $2.89 million from
interest income
• RMPP draw down of capital $1 million
23. NZMB RESERVES POLICY (CONTINGENCY
FUND) – AMENDMENTS PROPOSED
• Being prepared for an industry crisis
• Contingency fund capped at $57.5 million
• Proposed amendments to account for
FMD planning
Welcome to the Beef + Lamb New Zealand annual farmer consultation meeting. This is where we talk about our work programme and get to hear your views on where we are working on your behalf. At this time, we also consult on some New Zealand Meat Board business – and we’ll come to that shortly. It makes sense to run the two consultation processes while we have you at this meeting.
Beef + Lamb New Zealand’s vision is for a confident and profitable sheep and beef industry. Our purpose is to make informed business decisions and promote your collective interests. Underpinning this are the strategic priorities and principles that focus our activities.
You may remember us talking about our Farm, Market, People, Information programmes. They still exist as a framework. As an evolution the categories on this slide better describe where we work and are intended to make our materials and information easier to find – for instance when you are searching on the website.
Farm profit variability was the driver for commissioning the Red Meat Sector Strategy. Yes this there was some recovering in the 2011-12 year, but the variability makes it hard to plan and have the confidence to invest.
5 September 2011
RMPP is a unique partnership between four major meat companies, two banks, sheep and beef farmers through Beef + Lamb New Zealand and the Government. It’s a seven year programme which got underway this year.
$65.3 million – comes from farmers, industry and the Government. There are two major projects – one to build sector capability and the other to get sector information and data sets linked so they are more useful.
Beef + Lamb New Zealand Genetics was formed this year. It brings together our genetics investments, plus leveraged funding from the Government. Beef + lamb New Zealand will contribute $2.9 million a year towards a total annual investment of $8.8 million a year for the next five years. The money will be invested primarily in three areas 1. upgrading the software that runs the SIL genetic engine so it’s capable of dealing with increased flows of data. 2. Research into new genetic traits relevant to sheep and beef profitability (eg longevity of ewes and cows, product quality and efficiency), particularly on hill country. 3. Increasing farmer adoption of genetic selection tools and services across the sector.
Both the RMPP and B+LNZ Genetics projects are being conducted collaboratively with government, and as such it has allowed us to leverage an additional $60 million . This is extra money, alongside our investment, to significantly boost what’s possible.
We work with DairyNZ in a number of research projects on pasture, forage and the environment, again alongside the Government. We’re in school programmes with Young Farmers and DairyNZ promoting agriculture as a career choice and developing pathways into the sector. Our work with the Agri-Women’s Development Trust is about developing women leaders in agriculture. There are numerous awards with other primary sector groups promoting excellence – the Ballance Farm Environment Awards, the Ahuwhenua Trophy for excellence in Maori farming. We partner with DairyNZ and Deer Industry New Zealand DINZ as shareholders of Ospri the new vehicle created with the merging of Animal Health Board TB Free and NAIT, We fund undergraduate and learning courses in agriculture through the Primary ITO and we have numerous partnerships with research organisations like AgResearch, Lincoln, Massey.
Much of the behind the farmgate activity can be summed up as Research, Development and Extension. You have already seen this theme coming through as we focus on the hills as more sheep and beef production is being carried out there. Turning that research finding into tools is the development aspect and extension is getting that information to farmers so they can adopt it in their farming systems.
Some market research highlights and insights include:
Lamb rates the highest of all animal proteins in terms of having an excellent taste
New Zealand enjoys high awareness overall and has a reputation for producing quality food in a clean environment
Lamb is considered expensive and so it is reserved as a great or for special occasions
Relative to other animal proteins, lamb is seen as relatively difficult to prepare and is not readily available where all consumers shop.
The health benefits of grass-fed Beef are recognised by consumers, particularly in terms of leanness, vitamins and minerals
Conversely, grain-fed is associated with health issues – particularly risks around chemicals and cholesterol/saturated fats
Perceptions of grass-fed Beef are overwhelmingly positive relative to grain-fed. However, the majority of consumers have not knowingly tried grass-fed Beef
There are a number of important issues that consumers consider when purchasing - particularly health and safety
The levy remains unchanged – 60 cents for sheepmeat and $4.40 for beef.
Here’s the spend broken down into programme areas. $3 million less in market development that has been redirected to Environment and Environment Extension activities (to be confirmed).
Money for these projects is from B+LNZ reserves - money in the bank – not levy income for the year. Farmers voted in 2012 to commit to the Red Meat Profit Partnership and the $3.7million in the 2014-15 year will be the second draw-down for that project with $ 1.3 million paid in 2014.
The $425,00 is from the Meat Education Fund and this funds scholarships and leadership grants.
$500,000 has been earmarked to further develop the range of interactive tools we have on the website and the $400,000 is to upgrade the genetic engine that runs the B+LNZ Genetics performance and evaluation tool. There will be an application from MIE once their business plan is complete.
Farmers voted this year to support the bringing together of our genetics investments which enabled us to leverage government money – more about that later. As the Red Meat Profit Partnership gets underway we will need to draw down $1 million from the New Zealand Meat Board.
B+LNZ has been working on a package of interrelated issues to improve sector readiness for an industry crisis, e.g. FMD
One aspect has been to examine how activities to support the management of risk and achieve sector recovery can be resourced
The Contingency Fund (capped at $57.5 million) managed by the NZMB is a vital asset for resourcing risk/recovery activities
Amendments to the Contingency Fund are needed to update it for recent developments including the development of the B+LNZ Response Plan for FMD
Proposed amendments include the updating of terms, referencing of new resources (including a Crisis Management Strategy), and clarifying the nature and scope of anticipated activities
NZMB in consultation with B+LNZ considers the proposed amendments necessary and seeks feedback from farmers
More information available on the NZMB website: www.nzmeatboard.org
Refer to the NZMB website for more information including the Reserves Policy (Contingency Fund) provisions marked up with the proposed changes. I have a number of hard copies available with me if you’d like to take one away today.
AgResearch Future Footprint – B+LNZ supports the strategic intent of better aligning research resources, but we do have questions about AgResearch’s ability to retain capability. We are asking for more detail to be assured there will be no disruption to our research investments.
Wool Levy – B+LNZ has supported the Independent Wool Group as it has canvassed farmer appetite for a wool levy. We encourage farmers to have their say when the wool referendum is run later this year so that there is a clear direction on returning to the wool levy, or not. Once farmers have made their decision, and if it’s successful, then is the time to talk about how it could be administered and in the interests of efficiencies B+LNZ could possibly support the Independent Wool Group – but let’s wait and see what the outcome of the vote is.
MIE – through the B+LNZ remit process, farmers voted for B+LNZ to give MIE support and we are currently supporting them to develop a business plan which will be presented to the board for consideration.