Page 7 - Australian Pork Newspaper

Eight lessons from the past and for the next decade
FROM THIS
• External thermal and single layer blinds
• Stock drafting curtains
• Canvacon, Landmark Tearstop
and Titan fabrics
Eco shelter replacement covers and securing systems
TO THIS
• Frame guard felt tape
• Thermal blankets
• Shade cloth systems
• Aluminium lock strips
• Ratchet systems and webbing
T 1300 059 003 M 0429 574 963 E rod@polytex.net.au W polytex.net.au
AT this time of year many writers look back on what was achieved in the past year and for- ward to the coming year.
Our industry has just completed an idea gather- ing consultation exercise, in order to write a new Strategic Plan.
So, this is a look back at the good, the bad and the ugly of the past decade from a personal perspec- tive.
Here goes, in no par- ticular order.
1. Have an agenda for change (and be pre- pared to change it)
In 2010-15 we had a Strategic Plan that said we will voluntarily re- move gestation stalls, in- crease the levy for the first time in 17 years and introduce a robust qual- ity assurance system. The scoping meeting for the 2015-20 Strategic Plan basically said we want return on assets of 7 per- cent. That resulted in a plan that was about slow change in an environment that is changing ever more rapidly. We spent 2010-2015 acting on our agenda and 2016-2020 reacting. Let’s drive the bus, not be passengers.
2. Change means the man or woman in the mirror
We all create our own reality regardless of who we blame. If we want to make more money, have a better industry licence to operate or a more fulfilling life, we have to be prepared to change (see ‘Be market driven’ below). Are we prepared to give away some profitability in the next two years to create more sources of demand for the next time we are oversupplied?
3. It’s the economy, stupid!
When we look at the 2017 price crash, it is clear increased prices in 2015 combined with reduced feed costs con- tributed to increased pro- duction decisions, which hit the market in 2017-18. However hard it is to es- timate industry econom- ics, this is an industry driver. We need to cre- ate additional investment options to increase pro- duction when times are profitable.
4. Say what you’ll do, do what you say, prove it
The 2011 levy increase vote was approved by producers in part be- cause the deal was sim- ple: give us an extra 30 cents every other year from 2012-2016 inclusive and we will deliver 0.7kg per capita at similar price levels by June 2017. That was then measured and reported on every other Board meeting and every Delegates’ Forum since. We haven’t yet done this for cost of production, cost of processing or risk www.porknews.com.au
Marketing Matters
reporting and, in my not- particularly-humble opin- ion, we should.
5. Be market driven
This is my single big- gest failure of the past decade. My role has been to be the voice of the consumer and customer in our industry. Over the past decade we have hardly moved this nee- dle at all. We might want customers and consumers to care about what we want them to care about, but they have an annoy- ing habit of deciding for themselves what they are prepared to spend their money on. We have to go to them, ask them what they want and then pro- duce that. They have the money and we want it, it’s us who has to com- promise.
6. Benchmark against competitors and best- in-class
A decade ago (well, in February 2010) we re- started using “Get some pork on your fork”. Many people have said in the intervening years that’s not new, it’s boring, lack- ing innovation, not digi- tal and plenty of other stuff. Oddly, it was every- body except the consum- ers we are talking with who said these things. We have benchmarked our media buying per- formance, advert quality, public relations cover- age and performance by store type against com- petitors and others. We have adjusted programs based on evidence from benchmarking. This has helped fresh pork domes- tically to be the fastest- growing meat in both consumption and sales for the past decade. In fact, in retail the num- ber of dollars spent on pork is over $500 mil- lion more than beef and lamb combined, and we have spent just over a quarter of what Meat & Livestock Australia has budgeted domestically over that period.
7. Making choices makes progress
This is hard, choosing not to do anything in an area leaves us open to a risk of missing out. Try- ing to do a bit of every- thing is not a strategy, it’s just a recipe for busy fools (Pete’s opinion). But choices have conse- quences. In 2010-2019, we chose a strategic plan that said we would focus almost exclu- sively in the Australian
market. While that had good outcomes domesti- cally, it also means we have missed significant growth in Australian agricultural trade. This has resulted in a pig in- dustry income growth of about $600 million since
2010, whereas lamb is es- timated to have grown by $1400 million and beef by $2800 million.
8. Be kind to nerds
This I stole from Bill Gates, and I agree with him, we will all end up working for the people who can leverage tech- nology.
This decade according to Pete may not be the same as from your perspective, but when A PL consults on a draft 2020-25 Strategic Plan please come with your perspectives.
On that note, we wish all producers and col- laborators a fulfilling, successful 2020, full of change for the better.
by PETER HAYDON General Manager Marketing
Protection and Profit
from START to FINISH
® Porcilis®
Long-term PCV2 immunity for performance and profit
A single vaccination (2 mL) to pigs from 3 weeks of age* Rapid onset of immunity with long-term protection Reduces viral load and shedding
Reduces mortality*
Reduces weight loss*
Increases average daily weight gain*
* During the fattening period. Refer to registered product label for full claim details. Refer to Technical brochure for details of trial data.
Intervet Australia Pty Limited trading as MSD Animal Health ABN 79 008 467 034 Toll free 1800 033 461 www.msd-animal-health.com.au
Amanda Vardanega 0427 011 579
PCV
AU/POK/0715/0015(2)
Australian Pork Newspaper, January 2020 – Page 7
Call for a
FREE 2020 calendar!
FREE onsite measure & consultation