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Sheepmeat Council : Sheepmeat 2015 2016
18 SHEEPMEAT COUNCIL OF AUSTRALIA ANNUAL MUSTER 2015-16 STRATEGIC PLANNING Sheepmeat Industry Strategic Plan 2015-2020 Preview/Objectives Positioning the Australian sheepmeat industry for future success The Sheepmeat Industry Strategic Plan 2015-2020 (SISP 2020) sets out the sheepmeat industry’s strategic priorities for the coming five years. Sheepmeat Council of Australia (SCA) acts as custodian of SISP 2020 and has consulted with the production, processing and live export sectors throughout its development. The plan very strongly aligns to, and nests within the overarching framework provided for the red meat industry through the Meat Industry Strategic Plan 2015-2020 (MISP 2020). MISP 2020 has utilised expert input from all parts of the red meat industry to provide economic modelling which has informed the priorities set out in SISP 2020. Economic modelling undertaken as part of the development of MISP 2020, specific to the sheepmeat industry estimates that if all of the activities in the MISP 2020 pertinent to the sheepmeat sector were to be undertaken at an annual investment of $58 million, the plan would deliver increased net industry income of $728 million by 2020 and $3.49 billion by 2030 on the baseline projection. The overall benefit cost ratio is 2.8:1 at 2020 and 5.7:1 at 2030. Graph 1 shows this across the major pillars at 2030. Graph 1. SISP 2020 outcomes by 2030 product. While it commands high prices, consumers know exactly how the product will perform under given cooking methods. Australian lamb and sheepmeat products are trusted for their safety and their integrity, and are known to have come from farms that care for their sheep and for the environment in which they are raised. All parts of the supply chain are focused on satisfying their customers and apply cutting edge technology that ensure high quality product is produced profitability for all involved in the industry. The industry achieved this status through the wisdom of decisions taken over the previous half century. In 2015 the industry’s strategic plan established several of the foundations that now underpin the industry. Australian lamb is a premium product. Maintaining or building its premium position must be a top priority for the industry because this delivers high prices and potential profits to all sectors of the industry. A premium position of any product, if lost, is extremely difficult to regain. Everything about Australian lamb (eating quality, presentation, ethical integrity and safety) must justify its premium price or consumers will lose faith and confidence in it. SISP 2020 describes the priority activities that need to be undertaken from 2015-2020 to ensure the industry’s vision is achieved. From these, the following outcomes are the most critical: • Systems are in place that allow information flowing up and down the value chain to aid decision making and improve quality at all stages. • Reduced losses in the national flock including marking rates increased by 5 percentage points and ewe mortality rates decreased by 1 percentage point. • The successful definition and marketing of a yearling product: 1.39 million head underpinned by Meat Standards Australia (MSA) without compromising the lamb category. a BCR calculations use present value of benefits and costs from 2015-16 to 2029-30 in 2014-15 dollars using a real rate of return of 5%. When the benefits and payoffs of different actions are calculated there are both risks and opportunities that need to be considered. Graph 2 identifies that the net increased industry income (benefits) equates to the total value derived from investments to offset ‘downside risk’ and capitalise on ‘upside opportunity’. SISP 2020 has been developed with a focus on 2030 because some important decisions made now will exert influence some years after the life of the plan. So where does the industry visualise it will be in 2030? In 2030 Australian lamb will be a highly valued meal around the world, recognised for its exquisite flavour, tenderness and consistency in Graph 2. Summary of SISP 2020 composition of the benefits by 2030