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ANNUAL OPERATING PLAN 2014 | 2015 AUSTRALIAN MEAT PROCESSOR CORPORATION LTD
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Page 1: AnnuAl OperAting plAn - Australian Meat Processor Corporation · A triennial communications (marcom) plan will be implemented to complement the above programs. these medium and long

AnnuAl OperAting plAn

2014 | 2015

A u s t r A l i A n M e A t P r o c e s s o r c o r P o r A t i o n l t d

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AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

the role of the AustrAliAn MeAt Processor corPorAtion

the Australian Meat processor Corporation (AMpC) administers statutory levies on behalf of the red meat processing industry in Australia, as detailed in the Statutory

Funding Agreement with the Australian government. the AMpC Annual Operating plan (AOp) is submitted in accordance with Clause 12 of this Funding Agreement.

AMpC has 124 members operating in 150 meat processing establishments, representing over 97 per cent of Australia’s red meat processing capacity.

AMpC’s primary objective is to maximise the long-term viability and sustainability of the red meat processing industry by providing outcomes that:

■■ improve efficiency and competitiveness

■■ enhance sustainability of the sector

■■ assist in protecting and securing market access

■■ enhance capability and innovative capacity

■■ increase overall productivity and performance.

there are three key programs within which AMpC invests – the Joint program, the Core program and the plant initiated project (pip) program.

the Joint Program is collaboratively funded between AMpC and Meat & livestock Australia (MlA) using both producer and processor levies and matching Australian government research, Development and extension (rD&e) funds.

the Joint program generates supply and value chain outcomes which support food safety, eating quality and increased market demand for meat and meat products. in collaboration with the peak industry councils and MlA, AMpC contributes to developments across the red meat industry supply chain and the establishment of targets and Kpis for joint activities.

the Core Program is the main rD&e program within the meat processing sector. it is administered and delivered by AMpC and is supported by an industry-wide consultation process. this program addresses key issues facing the entire red meat processing chain in terms of productivity, profitability, sustainability and capability.

the Plant Initiated Project (PIP) Program is a mechanism for leveraging additional private investment directly into industry rD&e programs. this program enables processors to identify and undertake rD&e projects on plant that can deliver benefits to the whole of the red meat processing sector. it enables the transition and adaptation of new technologies into operating plants under real world conditions.

indications from FY 2013-14 are that the pip program continues to be supported by a diversity of processing companies in terms of both size and species, and across a broad range of rD&e activities. this applies in particular to priority investment areas such as capability development and the adoption of emerging technologies.

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AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

The Australian Meat Processor Corporation (AMPC) is a Rural Research and Development Corporation that supports the red meat processing industry throughout Australia. AMPC’s mandate is to provide research, development and extension (RD&E) services that improve the sustainability and efficiency of the sector.

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3AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Key challenges and drivers for research, development, extension and marketing investment .. . . . . . . . . . . . . . . . . . . . . . . . 5

Co-investment and collaboration .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Consultation framework underpinning AMpC’s rD&e and marketing investments .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Key AMpC outcomes, objectives and alignment .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

outcome 1: enhancing domestic and global competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

outcome 2: Delivering to customers and consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

outcome 3: product integrity, safety and wholesomeness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

outcome 4: improving meat processing productivity, products and processes .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

outcome 5: improving sustainability .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

outcome 6: Building capability and influencing practice change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

outcome 7: Continual improvement in business practice .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

total program investments FY 2014-15 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Forecast income and expenditure FY 2014-15... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

tABle of contents

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4AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

the Annual Operating plan (AOp) outlines the basis for AMpC’s research, development and extension (rD&e) programs and marketing activities in FY 2014-15. this AOp details key outcomes, objectives to reach those outcomes and activities to be completed.

each outcome is aligned with AMpC’s Strategic Plan 2013-17, which in itself is aligned to the red meat industry’s Meat Industry Strategic Plan (MISP) 2010-15 and the Australian government’s National and Rural RD&E Priorities. A copy of AMPC’s Strategic Plan 2013-17 is available on the AMpC website, www.ampc.com.au

strategic market planning new and emerging market drivers require an ongoing assessment of investment priorities to ensure Australia maintains a strong and viable red meat processing industry.

AMpC undertakes a collaborative approach to strategic planning to ensure that market insights and signals drive innovation. For further details on AMpC’s collaborative approach and consultation process, refer to pages 6 and 7.

to ensure rD&e priorities are correctly identified and result in beneficial outcomes for industry, AMpC will substantially expand its strategic market planning activities in FY 2014-15. this investment will involve the development of a strategic Market Plan to 2025 and a series of Program technology roadmaps to enable achievement of goals identified in this long term plan.

in addition, AMpC will develop and implement triennial Program strategic Plans for each of its newly established core programs which include:

■■ technology and processing

■■ implementation, extension and education

■■ environment and Sustainability

■■ Food Safety, product integrity and Meat Science

■■ industry improvement and economic Analysis.

A triennial communications (marcom) plan will be implemented to complement the above programs.

these medium and long term strategic plans will align with the AMPC Strategic Plan 2013-17, the Meat Industry Strategic Plan (MISP) and the National and Rural RD&E priorities and will provide a robust framework for future AOp portfolio development.

continuous operational improvementin the FY 2013-14, AMpC introduced a new Core program management process to improve portfolio development and delivery. this process involves deeper engagement with a broader array of stakeholders and includes processing industry members, research providers, government agencies and industry councils.

A major component of this improvement initiative is the transitioning of Core rD&e contract and project management from MlA to AMpC. this has resulted in improved operational delivery and enables AMpC to provide industry members with a clearer line of sight on investment priorities and performance.

in FY 2014-15, AMpC will continue to improve business performance by reengineering its workflow processes through the adoption of an integrated enterprise resource planning (erp) framework. new workflow process and associated tools will improve contract and project management, financial management and client relationship management (CrM). project management processes will include gated milestones to take account of both technical and commercial viability at key decision points in the development cycle.

AMpC will continue to review and align investments with the key focus areas of industry stakeholders. it is noted that in 2014, MlA will review its Strategic plan and subsequently re-model its AOp for the 2015-16 financial year. AMpC as a co-investor, will make the necessary adjustments at that point. it is also noted that in the FY 2014-15 the Meat Industry Strategic Plan will be revised as MiSp 4, which may require further refinement and alignment of AMpC’s strategic plans.

introduction

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5AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

the Australian red meat processing industry is well positioned to grow into the future. in particular, the positive outlook in export demand for red meat products underpins a viable and

sustainable industry. Strong market growth will deliver economic returns to processors, the Australian economy and the community as a whole.

in a globally competitive market however, Australian meat processing businesses face significant challenges. these include a relatively high cost of production, market access constraints, industry and

human resource capability gaps and growing environmental issues. Of particular significance is the need to continuously develop differentiated products and services that provide value to customers and a competitive advantage for processors.

in order to achieve these outputs, efforts will continue towards the introduction of products, processes and technologies that improve industry competitiveness and customer value.

Key chAllenges And drivers for reseArch, develoPMent, extension And MArKeting investMent

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6AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

AMpC is committed to working with its stakeholders to achieve an efficient application of levy funds through its rD&e and marketing activities. this is enhanced by leveraging AMpC’s

investments through co-investment and collaboration.

AMpC engages with the Australian government, its processor membership base, MlA and other bodies in the red meat industry. these collaborations ensure that processor levy funds are appropriately and effectively invested to deliver maximum impact.

O n e c o m p o n e n t o f A M p C ’s e x p e n d i t u re i n v o l v e s co-investment with MlA into Joint program activities. this partnership enhances service provision to the industry and the entire supply chain, whilst avoiding the duplication of capability and resources.

AMpC works closely with the Australian Meat industry Council (AMiC), the peak industry council and advisory body for the red meat processing industry. this relationship ensures that needs and issues identified by AMiC’s processing members are considered in research, development and extension activities.

AMpC has an ongoing partnership with the Meat industry training and Advisory Council (MintrAC). MintrAC enhances the scope of AMpC’s extension capabilities. extension activities are critical to the effective uptake of rD&e investments within the industry, and AMpC and MintrAC have a strong track record of ensuring outcomes from AMpC projects are utilised by processors.

AMpC will continue to develop strategic partnerships and alliances with other organisations that have complimentary capabilities and service delivery assets. these organisations include universities, government agencies, rDCs, research institutes, CSirO, CrCs and other industry providers, both in Australia and internationally.

there are numerous existing collaborations at the project, program and organisational level that extend across state, national and international boundaries. For further information regarding partnerships between AMpC and other organisations, please refer to the AMpC website, www.ampc.com.au

co-investMent And collABorAtion

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7AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

there are a range of consultation mechanisms that provide AMpC with inputs towards the identification of rD&e and marketing priorities and program development.

to develop rD&e and marketing programs, AMpC firstly engages with its membership base through an annual survey to help determine priority areas for consideration.

the company then facilitates industry consultative committees, known as Program Advisory committees (PAcs), which provide more specific strategic and technical input regarding priorities for investment within the five key programs:

■■ technology and processing

■■ implementation, extension and education

■■ environment and Sustainability

■■ Food Safety, product integrity and Meat Science

■■ industry improvement and economic Analysis.

representatives from industry, AMiC, MlA and MintrAC participate in this consultation process to ensure that the needs of industry and the Australian community are addressed.

AMpC engages with the Australian government to ensure effective alignment and delivery of industry and government priorities and the integration of rD&e activities for the benefit of industry and the broader community.

the company partners with research provider organisations to consider the latest science and scientific methodologies when determining priorities for investment. in the FY 2014-15, AMpC will expand its international provider base with the objective of adapting world leading technologies to Australian conditions.

consultAtion frAMeworK underPinning AMPc’s rd&e And MArKeting investMents

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AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 20158

the table below provides a high level summary of AMpC outcomes for FY 2014-15 and their associated deliverables. the objectives required to meet those outcomes are described in the sections following together with key project activities.

OutCOme DelIverable

1. enhancing domestic and global competitiveness

ensuring that markets remain efficient, accessible and attractive for investment.

2. Delivering to customers and consumers Continuing the development, delivery and reinforcement of key messages that encourage consumer and end user support for beef, lamb and goat products.

3. product integrity, safety and wholesomeness establishing Australia as a leader in the supply of safe and wholesome red meat products through systems and programs that manage food safety. Disruption to trade from key animal disease threats, animal welfare issues and traceability is minimised due to improved practices and measures.

4. improving meat processing productivity, products and processes

increasing industry productivity and net value by developing technologies and new products, building the capability of processors to manage change and encouraging the adoption of new and improved technologies and practices.

5. improving sustainability Addressing sustainability issues including natural resources management and utilisation, climate change and overall business continuity.

6. Building capability and influencing practice change

enhancing industry and research capability and building critical mass to ensure industry remains sustainable, profitable and productive.

7. Continual improvement in business practices Demonstrating continual business improvement, improving corporate management, strategic planning and risk management.

the alignment of outcomes in this Annual Operating plan with the Australian government’s National and Rural RDE Priorities is shown in the following table:

NatIONal reSearCH PrIOrItIeS

rural r&D PrIOrItIeS OutCOmeS

Promoting and maintaining good health through strengthening Australia’s social and economic fabric and preventive healthcare (healthy food production).

Productivity and adding value improve the productivity and profitability of existing industries and support the development of viable new industries.

1,2 and 4

Supply chain and markets Better understand and respond to domestic and international market and consumer requirements and improve the flow of such information through the whole supply chain, including to consumers.

1,2 and 4

an environmentally sustainable australia

Natural resource management Support effective management of Australia’s natural resources to ensure primary industries are both economically and environmentally sustainable.

3 and 5

Climate variability and climate change Build resilience to climate variability and adapt to and mitigate the effects of climate change.

3 and 5

Safeguarding australia biosecurity protect Australia’s community, primary industries and environment from biosecurity threats.

1

SuPPOrtING tHe rural reSearCH aND DevelOPmeNt PrIOrItIeS

Frontier technologies for building and transforming australian industries

Innovation skills improve the skills to undertake research and apply its findings.

2,3,5,6 and 7

technology promote the development of new and existing technologies.

2,3 and 4

Key AMPc outcoMes, oBjectives And AlignMent

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AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 20159

enhAncing doMestic And gloBAl coMPetitiveness

Strategies for unlocking market potential by addressing market access barriers is of major importance to the red meat industry’s sustainability and profitability. the viability of the

industry is dependent on ensuring global markets remain accessible, efficient and attractive.

Currently, the Joint program with MlA provides funding for the development of market access capabilities. this includes monitoring trade developments in overseas and domestic markets, undertaking market access research, developing industry-wide positions to support submissions to government and lobbying for market access improvements. Significant efforts have been directed towards improving access to global meat markets and responding to unexpected issues as they arise.

in FY 2014-15, the company will invest significant resources in an AMpC program to address technical barriers to trade in two key growth markets. it is estimated that technical barriers cost the industry in excess of $1 billion annually.

the World trade Organization (WtO) Doha round continues to offer prospects for trade reform, despite ongoing delays. it is critical that real improvements in market access are forthcoming from this round. in partnership with government, industry needs to pursue a broad range of initiatives to address the various barriers used to restrict trade. these include not only arguments to lower economic barriers to trade, but also work on animal disease, animal welfare and food safety standards. to guarantee access, it is important to ensure current regulatory standards are met in addition to anticipating developments in new standards.

Despite recent successes, there remains an ongoing need to support government bilateral FtA negotiations to deliver favourable outcomes. this includes actions to ensure tariff barriers and other trade restrictions are reduced, that commitments on customs procedures and investment are managed and that formal consultation processes deliver dialogue between industry, government and trade officials.

this outcome focusses on the following key objectives:

■■ Address trade and technical market access barriers that are aligned with industry and government strategies.

■■ Apply sound, scientific solutions to mitigate and remove trade barriers and enhance opportunities into existing markets

■■ Build capability in key technical and trade disciplines to support ongoing response to market access, trade negotiations, technical and regulatory issues as they arise

■■ Maximise market access options for red meat processors through effective trade reform activities

■■ respond to domestic and international market expectations by effectively demonstrating and ‘describing the system’ under which red meat is processed (and produced).

INveStmeNt SummarY ObJeCtIveS aND aCtIvItIeS FY 2014-15

1.0 ObJeCtIveS aCtIvItIeS buDGet

1.1 address trade and technical market access barriers that are aligned with industry and government strategies

• identification of market access targets and strategies and their resolution in the short, medium and long term

• project platforms to address key technical market access barriers resulting in agreed protocols

• proactive and reactive collaboration with industry sectors, bodies, governments and trading partners, to manage, communicate and prepare for current and potential trade barriers

• Monitoring and responding to WtO developments and providing representation to government

• research to support trade reform advocacy in WtO and FtA negotiations including in market and supply chain research.

$3,770,000

OutcOme 1

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10AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

1.0 ObJeCtIveS aCtIvItIeS buDGet

1.2 apply sound, scientific solutions to mitigate and remove trade barriers and enhance opportunities into existing markets

• r&D into key trade technical issues with investments into effective response capabilities that can address barriers as they arise.

$675,367

1.3 build capability in key technical and trade disciplines to support ongoing response to market access, trade negotiations, technical and regulatory issues as they arise

• professional development programs to coordinate and manage new and emerging issues for market access

• undertake equivalence mapping of mandated training with Australia’s major trading partners.

$23,250

1.4 maximise market access options for red meat processors through effective trade reform activities

• implementation of the AMpC Market Access trade Director program

• Monitoring development in overseas markets, developing networks of industry and government contacts in Australia and overseas, and providing, in cooperation with industry stakeholders, a response capability when issues arise

• Coalition building in key overseas markets and industry missions.

$250,000

1.5 respond to domestic and international market expectations by effectively demonstrating and ‘describing the system’ under which red meat is processed (and produced)

• Support for reactive industry delegations to quickly respond to market access issues

• Communication tools to describe the system underpinning domestic and export products are further developed

• inputs to key communications with trading partners and customers.

$130,000

tOtal amPC CONtrIbutION $4,848,617

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY mla (reFleCteD IN mla aOP)

• Action plans for key technical market access barriers are developed and endorsed by peak councils.

• Submissions prepared by MlA on economic market access barriers are endorsed by peak councils.

• Demonstrable progress is made on implementing the indonesia, China and eu market access and engagement strategies.

• trade perception of the safety of Australian red meat held at or above current levels in key markets.

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY amPC

• implementation of the Market Access trade Director position and program.

• effective consultation, under the auspices of the MOu, with partner organisations to develop strategic objectives and activities for the Joint program.

• progress on key technical barriers to trade issues in targeted countries consistent with deliverables from the AMpC Market Access program.

OutCOMe 1 enhAnCing DOMeStiC AnD glOBAl COMpetitiveneSS

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AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 201511

delivering to custoMers And consuMers

the global demand for Australian meat products is expected to increase by 150% to 2050. however, achieving these growth rates will require the red meat processing industry

to specifically segment, target and position it’s offering for a diverse customer base.

Consumer and societal expectations regarding industry and corporate accountability are increasing as values and norms evolve. this is all the more complex due to changing demographics both in Australia and internationally.

to maximise value delivery to customers and consumers and to maintain and increase the demand for red meat and red meat products, Australia’s processing sector will need to focus on product development, differentiation by target segment and the substantiation of product quality.

in anticipation of this focus, research will be conducted to underpin objective measures of eating quality. Accurate evaluations of quality traits will enhance the marketing of Australian meat products. Building on the platform of eating quality will be new research on genetics, genomics and functional foods, shelf life, packaging and new value added meat products.

this outcome focuses on the following key objectives:

■■ understanding what consumers and customers want in relation to red meat products and how these expectations can be met

■■ Demonstrating the importance of red meat in the diet

■■ Delivering wholesome and consistent eating quality

■■ enhancing and communicating the value proposition of the red meat category to the customer, consumer and community.

OutcOme 2

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12AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

INveStmeNt SummarY ObJeCtIveS aND aCtIvItIeS FY 2014-15

2.0 ObJeCtIveS aCtIvItIeS buDGet

2.1 understanding what consumers and customers want in relation to red meat products and how these expectations would be met

• in the domestic and export markets, examine the drivers of consumer demand

• Measure the effectiveness of marketing and promotional activities

• identify and provide information to address customer and community information needs

• Work closely with peak industry councils and government, and seek opportunities with like-minded organisations to identify priority industry issues and commission research to support these issues

• Support industry’s effective engagement with the community.

$113,000

2.2 Demonstrating the importance of red meat in the diet

• review and enhance the methodology for capturing consumer and customer buying behaviours

• Develop targeted strategies by market, cut, product and supply chain that specifically address the drivers of demand

• examine the effects of specific product attributes on consumer acceptability and product quality within market and by product

• Continue investment and communication of evidence on the benefit of healthy beef and lamb diets for meeting nutrient requirements and preventing obesity and chronic disease at key life stages

• Contribute to the red meat industry publications that provide information on the role of red meat in the diet

• Deliver nutrition and health messages to the community and key stakeholders through advertising, direct mail, publications, conferences, seminars, online and events.

$790,000

2.3 Delivering wholesome and consistent eating quality

• Develop and enhance the application of interventions for eating quality, nutrition, consistency and productivity

• Develop and improve meat measurement tools and online measures of quality

• enhance understanding of the variables and influences contributing to eating quality

• investigate issues including shelf life, microbiology, muscle attributes and cooking methods towards improving quality

• investigate pre-slaughter practices that impact on eating quality while also achieving nutritional content and productivity objectives

• Develop new technologies including probes that contribute to optimal eating quality, nutrition and consistency of product

• Continually examine and establish sound, scientific solutions for product attributes that are determined to impact negatively on the customer and consumer

• Collaborate with industry organisations to maximise consistent eating quality standards that demonstrate and minimise risks to meeting customer expectations

• encourage and support capability development in meat quality and meat science through relevant leadership, phD, Masters and honours programs.

$1,017,642

OutCOMe 2 Delivering tO CuStOMerS AnD COnSuMerS

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13AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

2.0 ObJeCtIveS aCtIvItIeS buDGet

2.4 enhancing and communicating the value proposition of the red meat category to the customer, consumer and community

• Strengthen Australian consumers’ emotional bond with beef, create desire and educate consumers to cook a range of seasonal beef meals/cuts

• Marketing to maintain lamb as a routine purchase by building national pride and encouraging consumers to purchase a wider range of cuts through promotional campaigns

• Contribute to whole-of-industry marketing campaigns that address the drivers of demand e.g. enjoyment, nutrition, convenience, integrity, ethical and social accountability and value for money

• position Australia’s red meat as safe, consistent, versatile, wholesome, and nutritious via trade and consumer educational activities

• undertake research to determine and increase the innovative capacity of personnel employed within the red meat processing industry

• Focus on lamb promotional efforts for consumer-specific community occasions throughout the year

• expand via investment with MlA, the red meat meal repertoire by building consumer confidence in preparation of a wider range of cuts and desire, using seasonal meal-based promotions

• invest via MlA in work with retailers and food service operators to raise standards of red meat presentation, quality, merchandising and promotion.

$1,268,000

tOtal amPC CONtrIbutION $3,188,642

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY mla (reFleCteD IN mla aOP)

• Maintain beef’s value share at 36% or higher of all fresh meat.

• improvement in key beef attributes measured by consumer tracking – ‘is the most superior meat’ at 36% or above and ‘my favourite meat’ at 19% or above.

• grow lamb market share of fresh meat at retail to more than 13.5%.

• improvement in key lamb attributes as measured by consumer tracking – ‘top of mind awareness’ to 16% or above and is loved by Australians’ to 72% or above.

• Strong retailer support for MlA programs as evidenced by more than 55% of retail butchers rating their sales impact ‘good/very good/excellent’.

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY amPC

• effective consultation, under the auspices of the MOu, with partner organisations to develop strategic objectives and activities for Joint programs.

OutCOMe 2 Delivering tO CuStOMerS AnD COnSuMerS

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AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 201514

Product integrity, sAfety And wholesoMeness

As global competition increases and trade barriers continue to proliferate, it is important for Australia to clearly differentiate itself on product integrity, safety and wholesomeness. Whilst

it is recognised that food safety is non-negotiable, the importance of being able to validate, demonstrate, communicate and manage responses to food safety issues is critical. it is important that the food safety system in operation can deliver an appropriate level of protection, and that the level of protection is continually reviewed against public health data and consumer expectations.

linked to food safety is the overall product integrity framework by which Australian meat processing products are produced. this framework includes traceability, management of biosecurity and disease threats, animal health and welfare measures, and overall meat processing quality standards. provision of a response capability to manage unforeseen food safety and integrity issues is also a necessity. therefore, the red meat processing industry will continue to invest in building capability and capacity in microbiology, epidemiology, veterinary and meat science disciplines.

From a research perspective, there is an ongoing need for investment in scientifically valid assessment tools for food safety, diagnostics and verification systems that communicate outcomes to the customer, end user, regulators and the community.

equivalent analysis methodologies that underpin Australian standards are important to demonstrate product integrity standards to end users. Consistent messaging relating to the science and systems applied in industry towards assuring product integrity and quality outcomes is the key to building sustainable relationships with trading partners and governments.

rD&e investments under this program will enable the achievement of high standards of animal welfare, livestock handling, stunning and slaughter practices, as well as animal health, residue management and the protection of industry from biosecurity incursions. Other key research areas include emergency management, disease surveillance and traceability systems.

this outcome focusses on the following key objectives:

■■ research and development to ensure food safety systems and practices are the hallmark of Australian product

■■ Maintaining and enhancing efficient product integrity standards and quality assurance systems

■■ Maintaining and enhancing a world class traceability system

■■ Biosecurity, residue management and animal health standards are underpinned by sound science

■■ Demonstrating high standards of animal welfare.

INveStmeNt SummarY ObJeCtIveS aND aCtIvItIeS FY 2014-15

3.0 ObJeCtIveS aCtIvItIeS buDGet

3.1 research and development to ensure food safety systems and practices are the hallmark of australian product

• Ongoing research that underpins the systems supporting product integrity and food safety

• Develop recognisable and scientifically valid performance indicators for integrity that are benchmarked and communicated

• Ongoing investments to the whole of supply chain product integrity systems and processes

• understand and enhance diagnostics for adulterants

• new technologies that further improve current food safety and product integrity systems to maintain Australia’s leading position in knowledge and practice change.

$438,422

OutcOme 3

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15AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

3.0 ObJeCtIveS aCtIvItIeS buDGet

3.2 maintain and enhance efficient product integrity standards and quality assurance systems

• Contribute to the development of new food safety systems and processes

• Continue the support of AusMeat Standards Division

• Support the Secretariat Services for SAFeMeAt and contribute to the development of effective industry integrity and food safety issues

• respond to customer and market expectations on the wholesomeness of red meat products

• uptake of product integrity standards is supported through rigorous quality assurance practices, extension, training and capability development

• Contribute to supply chain related projects that target and underpin the integrity of Australian red meat and livestock quality assurance programs

• Continue to support training and extension systems covering livestock management within the supply chain.

$1,666,375

3.3 maintain and enhance world class traceability systems

• ensure that nliS ltd has the capability to deliver database and support services to enable industry to meet the national traceability standards.

$644,000

3.4 biosecurity, residue management and animal health standards are underpinned by sound science

• Continue disease surveillance and monitoring programs that support industry and government biosecurity.

$372,158

3.5 High standards of animal welfare are demonstrated

• implement and support industry’s animal welfare standards

• Continue research investigations into refining animal welfare measures and practices in livestock handling, stunning and slaughter

• investigate livestock (animal) measures that correlate to meat quality measures to enhance the integration of animal welfare as a quality characteristic

• Develop communication materials on animal welfare activities in meat processing for consumers, trading partners and governments.

$233,500

tOtal amPC CONtrIbutION $3,354,455

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY mla (reFleCteD IN mla aOP)

• Satisfaction rating of MlA’s food safety activities by industry (processors and AMiC) rated at more than 85%.

• nliS database refresh project continuing with all user and third party software interfaces complete.

• industry-wide roll out of the central web-based electronic national vendor Declaration database completed by June 2015.

• gap analysis of through chain assurance programs completed by September 2014.

• Future funding model for SAFeMeAt programs endorsed by industry by April 2015.

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY amPC:

• effective consultation, under the auspices of the MOu, with partner organisations to develop strategic objectives and activities for joint programs with MlA.

• Study on community and consumer attitudes is conducted and reported.

• Development of extension and training materials for biosecurity, traceability, animal health, product integrity, food safety and animal welfare.

• Develop a program technology roadmap to 2025.

OutCOMe 3 prODuCt integritY, SAFetY AnD WhOleSOMeneSS

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AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 201516

iMProving MeAt Processing Productivity, Products And Processes

productivity growth and the ability to rapidly respond with new products as market needs change are key elements in maintaining industry competitiveness.

Australian meat processors operate complex businesses in an environment characterised by highly variable inputs and market conditions. new and emerging challenges include labour and skill shortages, the high cost of production, broader international competition, climate change and increased regulatory burdens. in the face of these challenges it is essential that research and development delivers new tools, products, processes and manufacturing technologies that support efficient processing and improved value capture.

new products must be aligned with both domestic and international customer needs. Australian processing businesses are well placed to identify those needs and to develop appropriate responses if they are supported by innovation programs that provide the required platform technologies.

this outcome focusses on the following key objectives:

■■ increasing the productivity of red meat processors to compete globally through new technologies and manufacturing practices

■■ novel and efficient technologies and processes for whole carcase measurement and monitoring

■■ new meat products

■■ examining opportunities to value add to meat and meat products

■■ enhancing the adoption and commercialisation of new technologies and innovations.

INveStmeNt SummarY ObJeCtIveS aND aCtIvItIeS FY 2014-15

4.0 ObJeCtIveS aCtIvItIeS buDGet

4.1 Increasing the productivity of red meat processors to compete globally through new technologies and manufacturing practices

• Develop new technologies and manufacturing processes including manual assist technologies, collaborative robots, automation of spinal cord removal, and pick and place systems

• Continue to invest in slaughter, boning and cutting activities, as well as advancements in product packaging

• Developing cost effective improvements and alternatives to bandsaw use

• investigate efficient processing practices that deliver labour and/or worker safety outcomes

• Develop cost effective automation and robotics solutions

• Develop and integrate vision and sensing systems.

$2,451,040

OutcOme 4

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17AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

4.0 ObJeCtIveS aCtIvItIeS buDGet

4.2 Novel and efficient technologies and processes for whole carcase measurement and monitoring

• investigate and develop new platform technologies

• research new technologies and systems that maximise the utilisation of meat and meat products, including meat specifications and sensing for automation

• technologies to be considered include:

– review and strategic development of objective carcass management (OCM)

– trialling of x-ray OCM bone fat and muscle

– beef and lamb OCM, including value based marketing, food safety, eating quality and automation (pick and pack)

– quantifying the benefits of developing a Ct marbling solution

• Benchmarking key tasks and strategic developments to maximise real time data collection and integration with technological advancements.

$559,568

4.3 New meat products • identify and evaluate new and emerging product trends

• Develop new technologies to improve the range of co-product applications

• Deliver industry capability programs that aid in the adoption and development of new products

• Develop technologies and processes that expand consumer and food service demand for low-value cuts and by-products

• Develop products and protocols for high connective tissue cuts.

$386,000

4.4 examining opportunities to value add to meat and meat products

• investigate new technologies to enhance existing technologies and new product development including:

– mechanical ovine french racking

– x-ray lamb frenching

– automated preparation of french dressed ribs

• evaluate new products and technology opportunities.

$274,938

4.5 enhancing the adoption and commercialisation of new technologies and innovations in industry

• Collaborate with other sectors and international partners in the development of new technologies

• implement training and extension activities for the adoption of new innovation and technological advances.

$194,920

tOtal amPC CONtrIbutION $3,866,466

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY mla (reFleCteD IN mla aOP)

these measures relate only to MDC activities to which AMpC invests in part through the pip program:

• realise net benefits of $1.0 million per annum from processing technologies developed under the MDC.

• total aggregated net benefit of MDC-funded technologies installed both in 2014-15 and previous years reach $8 million per annum.

• Five MDC funded commercial innovations have achieved at least 80% of their annual adoption strategy targets, including associated cost benefit analysis.

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY amPC:

• Communicate new technologies and product developments to the industry.

• undertake at least one review that validates options for new technologies and cost/benefit, and/or evaluates the need for future technological solutions specific to a particular priority area.

• investigate improvements to vision and sensing and objective carcase measurement (OCM) technology.

• Develop a program technology roadmap to 2025.

OutCOMe 4 iMprOving MeAt prOCeSSing prODuCtivitY, prODuCtS AnD prOCeSSeS

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AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 201518

iMProving sustAinABility

industry sustainability relates to a broad array of economic, social and environmental factors and includes issues as diverse as infrastructure and capability.

the red meat processing industry is Australia’s largest food manufacturer and food exporter. it generates annually $16.2 billion in gDp, $7.6 billion in household income, $5.8 billion in exports and 148,000 jobs when flow-on effects are included.

there are a number of sustainability challenges facing the Australian red meat industry today. Amongst those are international competition and the cost of production, volatile markets and trading conditions, declining resources and capability, changing customer and trading partner requirements and climate variability. it is a complex environment.

these challenges place increasing pressure on the industry to remain viable and sustainable over the long term. research and development interventions are needed to address these issues through a ‘triple bottom line’ focus that considers an integrated approach to all relevant environmental, social and economic factors.

Key r&D activities relating to improved sustainability include benchmarking resource utilisation, the development of tools, processes and technologies that improve resource use efficiency, and value recovery from waste management. investment in rD&e to improve environmental sustainability will enable red meat processing businesses to proactively participate in the low carbon economy.

this outcome focusses on the following key objectives:

■■ investigating, understanding, communicating and responding to changes and influences in the red meat processing industry

■■ improving wastewater management, nutrient capture and value adding technologies, practices and procedures

■■ improving industry knowledge and capability to achieve sustainable resource management and adapt to climate change

■■ improving energy efficiency

■■ efficiency in natural resource utilisation

■■ Business sustainability and continuity is enhanced.

OutcOme 5

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19AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

INveStmeNt SummarY ObJeCtIveS aND aCtIvItIeS FY 2014-15

5.0 ObJeCtIveS aCtIvItIeS buDGet

5.1 Investigating, understanding, communicating and responding to changes and influences in the red meat processing industry

• Conduct research into new standards, policies and programs that impact environmental management within the red meat processing industry

• Continue to identify and evaluate issues impacting the industry and liaise with government.

$70,750

5.2 technologies, practices and procedures that improve wastewater management, nutrient capture and value adding

• investigate and implement nutrient recovery technologies and practices

• Develop technologies that enable integrated wastewater treatment systems and processes

• Continue the experimental approach to developing optimal design and operational parameters for anaerobic digestion technologies

• examine options for water efficiency and water re-use whilst maintaining food safety standards.

$508,377

5.3 Improving industry knowledge and capability to achieve sustainable resource management and adapt to climate change

• Develop and implement various extension programs aimed at improving industry knowledge of technologies, practices and processes that minimise impacts and maximise value add opportunities for solid and liquid waste streams

• Determine the benchmarking, monitoring and reporting of key industry performance indicators.

$124,865

5.4 Improving energy efficiency

• examine technologies and alternatives for renewable energy on plant

• examine methods to measure and benchmark energy use.

$322,722

5.5 efficient natural resource utilisation

• examine options for recycling organic waste

• Develop capability in waste management within the red meat processing industry.

$85,000

5.6 business sustainability and continuity is enhanced

• establish a resource that consolidates best practice engineering information

• Work with other rDCs to build attractive learning packages related to environmental sustainability issues

• Develop innovative tools to identify, benchmark and respond to sustainability issues that impact on industry

• undertake workforce development planning to identify and address potential skill shortages over the next five years.

$290,800

tOtal amPC CONtrIbutION $1,402,514

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY mla (reFleCteD IN mla aOP)

• identify and/or start the development of technologies and practices that have the potential to reduce by 2015 net energy consumption per thSCW by 10%.

• investment in environment and sustainability programs and impacts/benefits for processors are evaluated.

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY amPC:

• establish a clear rD&e strategy that encompasses energy efficiency research priorities in consultation with AMpC members.

• establish extension tools for processors to determine the most optimal way to reduce energy consumption.

• Deliver investigations into new waste water technology, biogas technology, ammonia removal and other nutrient capture, and value adding options for processing businesses.

• Develop environment and sustainability related extension packages aimed at encouraging industry practice change.

• Develop a program technology roadmap to 2025.

OutCOMe 5 iMprOving SuStAinABilitY

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AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 201520

Building cAPABility And influencing PrActice chAnge

the value of research and development is only delivered when outcomes are taken up and successfully implemented by industry. By increasing capability and influencing practice

change, improvements in competitiveness, commercial returns and innovation can be achieved.

training programs and the ability to demonstrate the effectiveness of new work practices will continue to be a key area of investment under the Meat processing Diploma and related training units. educational networks established in industry to date have been particularly effective in this regard.

AMpC recognises the significant benefits of improved coordination and collaboration across government, rDCs, industry and educators in delivering outcomes for the sector. Strengthening partnerships will help to reduce duplication and improve efficiencies. AMpC’s rD&e programs will continue to include extension and education for effective communication and engagement with industry and other key stakeholders. AMpC will also increase its investment in building human resource innovation capacity into business operations.

An important new initiative in FY 2014-15 is a feasibility study regarding the development of a Meat processing innovation Centre of excellence in Australia. it is considered that such a facility might bridge the gap and reduce perceived risks that exist in transitioning new technologies from the laboratory or engineering workshop to the meat processing plant.

this outcome focusses on the following key objectives:

■■ engaging key stakeholders to create awareness and demonstrate value

■■ increasing industry capability and capacity

■■ increasing research capability and capacity

■■ evaluation of rD&e outcomes.

INveStmeNt SummarY ObJeCtIveS aND aCtIONS FY 2014-15

6.0 ObJeCtIveS aCtIvItIeS buDGet

6.1 engaging key stakeholders to create awareness and demonstrate value

• Develop new capability programs which focus on plants and providers skill discipline development

• Support the development of an industry wide leadership development program

• Support the Australian rural leadership program

• Support and delivery with MintrAC, the Meat industry training network

• Support and delivery with MintrAC, the Meat inspection and Quality Assurance network

• Support and deliver with MintrAC, the Meat processing engineering network

• Support and deliver with AMiC, the QCMpA networks

• Support the processor innovation Awards and ABAreS Young Scientist Award

• Support industry extension programs and the associated AMpC communication strategy

• increase engagement with relevant manufacturing industries to build partnerships and leverage information for the benefit of the red meat processing industry

• research and address community perceptions of the red meat processing industry.

• Continue the intercollegiate Meat Judging program and Competition.

$621,530

OutcOme 6

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21AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

6.0 ObJeCtIveS aCtIvItIeS buDGet

6.2 Increasing industry capability and capacity

• undertake a feasibility study to determine the potential for a red meat processing innovation Centre of excellence

• Develop a benchmarking project to determine the innovative capacity of personnel within the industry

• Develop a benchmarking project to evaluate skill needs in the industry and options for further professional development

• Continue the extension of rD&e outcomes to industry and conduct research into more innovative and interactive extension mediums and platforms

• Continue the investment in training and the upgrade of the meat processing training packages and programs

• Determine priority training needs and develop appropriate training units for maintenance engineers

• Develop training solutions to meet the needs of industry including research into innovative extension programs

• encourage and facilitate identification and development of rD&e for adoption through the pip program

$1,165,564

6.3 Increasing research capability and capacity

• Develop a benchmarking project and strategy for developing industry researchers capability in key areas of industry rD&e need

• participate in the rirDC’s primary industries health and Safety partnership

• Broaden the scope of investment in post-graduate project areas relevant to the industry

• participate in the Animal Welfare rD&e strategy

• participate in the Climate Change research Strategy for primary industries (CCrSpi).

$177,300

6.4 evaluation of rD&e outcomes

• evaluate the pip program

• evaluate the ongoing ex-ante and ex-post evaluations against key outcomes.

$84,931

tOtal amPC CONtrIbutION $2,049,325

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY amPC

• the delivery of a feasibility study for a red meat processing innovation Centre of excellence.

• the delivery of two new capability building programs that lead to an increased innovation adoption rate.

• the establishment of post-graduate research stipends (two) in areas of processor priority and capability needs.

• the development of at least two new training units in key areas.

OutCOMe 6 BuilDing CApABilitY AnD inFluenCing prACtiCe ChAnge

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AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 201522

continuAl iMProveMent in Business PrActice

this outcome supports AMpC’s focus on continued business improvement, governance, corporate and risk management. there is an ongoing need to review and improve business

processes and performance, which together with associated company policies, plans and procedures drive operational efficiency and the delivery of outcomes. the company will be managed as an innovation business driven by key performance metrics.

Following the transition of Core program contract and project management responsibilities from MlA to AMpC, this outcome will focus on overhauling AMpC’s business processes, workflows and associated automation tools. the deliverables will include improved strategic market planning, business planning, employee management, financial management, contract and project management and gated innovation management.

Automation will include tools for integrated enterprise resource planning (erp) and customer relationship management (CrM), that includes project, portfolio, document and financial management.

During FY 2014-15, there will be a revision of the risk Management plan and preparation for the periodic AMpC performance review as required by the SFA in September 2015.

AMpC’s marketing communication activities will be enhanced to focus on the targeted delivery of outcomes from the six new innovation programs. Marketing communication initiatives will include a range of interactive communication channels tailored specifically to the needs of key stakeholder groups.

this outcome includes an ongoing review and development of policies consistent with the company’s strategic plan and governance standards. Finally, evaluation and demonstration of investment outputs will remain a key component of this outcome.

this outcome focusses on the following key objectives:

■■ Demonstrate AMpC’s outputs to key stakeholders

■■ improving the efficiency of the organisation

■■ improve AMpC compliance with obligations

■■ enable AMpC to achieve its stated objectives.

OutcOme 7

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23AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

INveStmeNt SummarY ObJeCtIveS aND aCtIvItIeS FY 2014-15

7.0 ObJeCtIveS aCtIvItIeS buDGet

7.1 Demonstrate amPC’s outputs to key stakeholders

• Develop publications that communicate opportunities for members and meet AMpC’s governance requirements

• Design and conduct targeted processor forums to identify rD&e priorities and strategies for industry

• Develop materials that communicate the partnership and co-investment arrangements, outcomes and results

• Deliver and implement the AMpC communications (marcom) plan

• produce and publish reports, fact sheets, circulars and other materials for stakeholders

• Maintain and improve the AMpC website portal

• Overhaul AMpC project management tools.

$450,500

7.2 Improving the efficiency of the organisation

• the Board and executive oversee and determine policies, processes, procedures and tools to improve operations consistent with the company’s strategic plan and to exercise direction and governance over the way in which the strategies are implemented

• implement improved business operations, workflow processes and tools (erM/CrM).

$487,500

7.3 Improve amPC compliance with obligations

• the provision of accurate, timely and meaningful information to management and stakeholders, managing financial risks, providing support for the budget and planning process, and maintaining high levels of internal controls.

$336,520

7.4 enable amPC to achieve its stated objectives

• provide services to realise the potential of investments to deliver value to industry. ensure that the service agreement with MlA delivers the agreed collaborative portfolio.

$325,000

tOtal amPC CONtrIbutION $1,599,520

PerFOrmaNCe meaSureS tO be rePOrteD aGaINSt bY amPC

• improved business processes to enhance strategic decision making, operational effectiveness and stakeholder communication. Demonstrated changes to portfolio balance to maximise short, medium and long term benefits.

• AMpC measures, reports and improves value from investments and ensures that its investment strategy is understood by government, members and other stakeholder organisations.

• internal and external processes are enhanced for improved business efficiency and impact coupled with revised consultation arrangements and demonstrated transparency in research outputs.

• improve decision making by documenting how AMpC delivers its corporate objectives in a manner that is clearly consistent with its legal and policy obligations.

• introduce new automation tools for erM, CrM, portfolio, innovation and project and financial management.

• Conduct reviews of business performance by independent parties.

• Complete the pip evaluation for the last three year period.

OutCOMe 7 COntinuAl iMprOveMent in BuSineSS prACtiCe

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24AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

the table below provides a summary of AMpC’s contribution to each outcome and objective as described in this AOp. in addition, the total for these outcomes is shown based on additional MlA investments.

1.0 eNHaNCING DOmeStIC aND GlObal COmPetItIveNeSS amPC CONtrIbutIONS

tOtal PrOGram

1.1 Address trade and technical market access barriers that are aligned with industry and government strategies

$3,770,000 $8,041,000

1.2 Apply sound, scientific solutions to mitigate and remove trade barriers and enhance opportunities into existing markets

$675,367 $1,915,878

1.3 Build capability in key technical and trade disciplines to support ongoing response to market access, trade negotiations, technical and regulatory issues as they arise

$23,250 $46,500

1.4 Maximise market access options for red meat processors through effective trade reform activities

$250,000 $500,000

1.5 respond to domestic and international market expectations by effectively demonstrating and ‘describing the system’ under which red meat is processed (and produced)

$130,000 $260,000

tOtal $4,848,617 $10,763,378

2.0 DelIverING tO CuStOmerS aND CONSumerS amPC CONtrIbutIONS

tOtal PrOGram

2.1 understand what consumers and customers want in relation to red meat products and how these expectations would be met

$113,000 $2,167,000

2.2 Demonstrating the importance of red meat in the diet $790,000 $5,959,000

2.3 Delivering wholesome and consistent eating quality $1,017,642 $5,139,284

2.4 enhancing and communicating the value proposition of the red meat category to the customer, consumer and community

$1,268,000 $17,289,000

tOtal $3,188,642 $30,554,284

3.0 PrODuCt INteGrItY, SaFetY aND WHOleSOmeNeSS amPC CONtrIbutIONS

tOtal PrOGram

3.1 research and development to ensure food safety systems and practices are the hallmark of Australian product

$438,422 $876,844

3.2 Maintain and enhance efficient product integrity standards and quality assurance systems

$1,666,375 $5,226,750

3.3 Maintain and enhance world class traceability systems $644,000 $5,766,000

3.4 Biosecurity, residue management and animal health standards are underpinned by sound science

$372,158 $744,316

3.5 high standards of animal welfare are demonstrated $233,500 $467,000

tOtal $3,354,455 $13,080,910

totAl ProgrAM investMents fy 2014-15

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25AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

4.0 ImPrOvING meat PrOCeSSING PrODuCtIvItY, PrODuCtS aND PrOCeSSeS

amPC CONtrIbutIONS

tOtal PrOGram

4.1 increasing the productivity of red meat processors to compete globally through new technologies and manufacturing practices

$2,451,040 $7,162,654

4.2 novel and efficient technologies and processes for whole carcase measurement and monitoring

$559,568 $1,119,136

4.3 new meat products $386,000 $1,544,000

4.4 examine opportunities to value add to meat and meat products $274,938 $549,876

4.5 enhancing the adoption and commercialisation of new technologies and innovations in industry

$194,920 $389,840

tOtal $3,866,466 $10,765,506

5.0 ImPrOvING SuStaINabIlItY amPC CONtrIbutIONS

tOtal PrOGram

5.1 investigating, understanding, communicating and responding to changes and influences in the red meat processing industry

$70,750 $141,500

5.2 technologies, practices and procedures that improve wastewater management, nutrient capture and value adding

$508,377 $1,581,898

5.3 improving industry knowledge and capability to achieve sustainable resource management and adapt to climate change

$124,865 $249,730

5.4 improving energy efficiency $322,722 $1,210,589

5.5 efficient natural resource utilisation $85,000 $170,000

5.6 Business sustainability and continuity is enhanced $290,800 $581,600

tOtal $1,402,514 $3,935,317

6.0 buIlDING CaPabIlItY aND INFlueNCING PraCtICe CHaNGe amPC CONtrIbutIONS

tOtal PrOGram

6.1 engaging key stakeholders to create awareness and demonstrate value $621,530 $768,660

6.2 increasing industry capability and capacity $1,165,564 $4,026,559

6.3 increasing research capability and capacity $177,300 $354,600

6.4 evaluation of rD&e outcomes $84,931 $169,862

tOtal $2,049,325 $5,319,681

7.0 CONtINual ImPrOvemeNt IN buSINeSS PraCtICe amPC CONtrIbutIONS

tOtal PrOGram

7.1 Demonstrate AMpC’s outputs to key stakeholders $450,500 $901,000

7.2 improving the efficiency of the organisation $487,500 $975,000

7.3 improve AMpC compliance with obligations $336,520 $673,040

7.4 enable AMpC to achieve its stated objectives $325,000 $650,000

tOtal $1,599,520 $3,199,040

GraND tOtal $20,309,538 $77,618,115

tOtAl prOgrAM inveStMentS FY 2014-15

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26AustrAliAn MeAt Processor corPorAtion AnnuAl oPerAting PlAn 2014 – 2015

the table below provides a summary of AMpC’s forecast income and expenditure in relation to delivery against the outcomes listed on page 25.

forecAst incoMe And exPenditure fy 2014-15

buDGet 2014-15

research, development and extension funds*

marketing funds ** Pre-statutory funds***

total

INCOme

64% 36%

industry levies $10,716,800 $6,028,200 $16,745,000

interest income $1,339,962 $214,518 $1,554,480

total income $12,056,762 $6,028,200 $214,518 $18,299,480

amPC OutCOmeS

1. enhancing domestic and global competitiveness

$538,617 $4,310,000 $4,848,617

2. Delivering to customers and consumers $1,177,040 $2,011,602 $3,188,642

3. product integrity, safety and wholesomeness $1,844,297 $1,510,158 $3,354,455

4. improving meat processing productivity, products and processes

$3,866,466 $3,866,466

5. improving sustainability $1,402,514 $1,402,514

6. Building capability and influencing practice change

$2,049,325 $2,049,325

7. Continual improvement in business practices $762,500 $837,020 $1,599,520

total programs $11,640,758 $8,668,780 $20,309,538

COrPOrate COSt

AMpC corporate costs - direct $480,269 $480,269

AMpC corporate costs - indirect $295,358 $943,545 $1,238,902

total indirect costs $775,627 $943,545 $1,719,172

buDGet SurPluS/(DeFICIt) ($359,624) ($3,584,125) $214,518 ($3,729,230)

AccuMulAted funds MoveMents - fy 2014-15

research, development and extension funds*

marketing funds ** Pre-statutory funds***

total

accumulated funds as at 30 June 2014 $34,298,772 ($2,132,653) $6,167,854 $38,333,974

aOP FY2014-15 ($359,624) ($3,584,125) $214,518 ($3,729,230)

estimated accumulated funds - 30 June 2015 $33,939,149 ($5,716,777) $6,382,373 $34,604,744

*r = research, development and extension funds as defined by Statutory Funding Agreement 2011-15.**M = Marketing funds as defined by Statutory Funding Agreement 2011-15.***p = pre-statutory funds accumulated from voluntary members’ contribution before the Statutory Funding Agreement 2007-10.

forecAst incoMe And exPenditure fy 2014-15

Page 28: AnnuAl OperAting plAn - Australian Meat Processor Corporation · A triennial communications (marcom) plan will be implemented to complement the above programs. these medium and long

suite 1, level 5, 110 walker street, north sydney nsw 2060Po Box 6418, north sydney nsw 2059

t (02) 8908 5500 F (02) 9436 0343 W ampc.com.au


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