Annual Report 2010-2011
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AUSTRALIAN PORK LIMITED Annual Report 2010–2011 AUSTRALIAN PORK LIMITED Annual Report 2010–2011 1 VISION A competitive, responsible and sustainable Australian pork industry PURPOSE Drive profitability and sustainability for pork producers through the provision of programs and services to the Australian pork industry VALUES 1. Passion and dedication to the cause of our farmers; 2. Deliver what we promise, when we promised it; 3. Respect and support colleagues; 4. Creating the future our farmers need; and 5. Celebrate achievements. AUSTRALIAN PORK LIMITED ABN 83 092 783 278 43–49 Geils Court Deakin ACT 2600 Telephone: 02 6285 2200 Facsimile: 02 6285 2288 Email: [email protected] Web: www.australianpork.com.au Disclaimer The opinions, advice and information contained in this publication have not been provided at the request of any person but are offered by Australian Pork Limited solely for informational purposes. While the information contained on this publication has been formulated in good faith, it should not be relied on as a substitute for professional advice. Australian Pork Limited does not accept liability in respect of any action taken by any person in reliance on the content of this publication. CONTENTS 1 MESSAGE FROM THE CHAIR 2010–2011 ...........................................................................................3 2 MESSAGE FROM THE CEO 2010–2011 ................................................................................................4 3 OPERATIONAL AND STRATEGIC OVERVIEW ..............................................................................8 3.1 Overall Framework ......................................................................................................................................8 3.2 Role and Functions .......................................................................................................................................8 3.3 Core Values .......................................................................................................................................................8 3.4 Members.............................................................................................................................................................9 3.5 Other Stakeholders ..................................................................................................................................10 3.6 Organisation Structure ...........................................................................................................................11 3.7 Developing the Strategic Directions ..............................................................................................13 3.7.1 Core Objective 1 — Build Consumer Demand .....................................................13 3.7.2 Core Objective 2 — Viable Productive Farms ..........................................................13 3.7.3 Core Objective 3 — Efficient Value Chains ................................................................13 3.7.4 Core Objective 4 — Leadership, Preparedness, Stewardship ........................13 3.7.5 Core Objective 5 — Industry Cohesion and Responsiveness .......................14 3.8 Governance ...................................................................................................................................................14 4. REPORT ON PERFORMANCE .................................................................................................................18 4.1 Summary of Objectives — KPIs and Outcomes ...................................................................18 4.2 Core Objective 1 — Build Consumer Demand ...................................................................20 4.3 Core Objective 2 — Viable Productive Farms ........................................................................27 4.4 Core Objective 3 — Efficient Value Chains ..............................................................................33 4.5 Core Objective 4 — Leadership, Preparedness, Stewardship ......................................39 4.6 Core Objective 5 — Industry Cohesion and Responsiveness .....................................57 4.7 Overall Financial Summary by Core Objective ......................................................................65 4.8 Reporting Obligations .............................................................................................................................65 5. MEETING INDUSTRY AND GOVERNMENT PRIORITIES ...................................................67 5.1 Alignment with the Rural Research and Development Priorities ...............................67 5.2 National Primary Industries Research, Development and Extension Framework .............................................................................................................................71 AUSTRALIAN PORK LIMITED Annual Report 2010-11 1 6. COLLABORATION AND EVALUATION ..........................................................................................72 6.1 Pork Industry Consultation ..................................................................................................................72 6.2 Supply Chain Engagement ....................................................................................................................72 6.3 Government Meetings ............................................................................................................................72 6.4 Inter-Organisational Committees .....................................................................................................73 6.5 Commercialisation .....................................................................................................................................73 6.6 Agreements ...................................................................................................................................................74 6.7 Cross-Sectoral Initiatives ........................................................................................................................74 6.8 Efficiency Enhancement..........................................................................................................................75 6.9 Evaluation of Outcomes for Industry and the Community ............................................75 7. Statutory Reports ...................................................................................................................................76 7.1 Directors’ Report .......................................................................................................................................76 7.2 Independent Audit Report to members of Australian Pork Limited .......................86 7.3 Auditor’s Independence Declaration to the Directors of Australian Pork Limited ..................................................................................................................................................88 7.4 Financial Report 2010–2011 ..............................................................................................................89 8. APPENDICES .......................................................................................................................................................113 8.1 Appendix A – Material Variations to Budget .........................................................................113 8.2 Appendix B – Funds Spent on Research and Development Activities ................114 8.3 Appendix C – Funds Spent on Marketing and Strategic Policy Development Activities .......................................................................................................................115 8.4 Appendix D – Funds Spent on National and Rural Research and Development Priorities .......................................................................................................................116 ACRONYMS ..................................................................................................................................................................117 2 AUSTRALIAN PORK LIMITED Annual Report 2010–2011 1 Message from the Chair 2010–2011 As Chairman, on behalf of the Australian Pork Limited (APL) Board, I present to you the company’s 2010– 2011 Annual Report. This is the second year of operating under the Strategic Plan 2010–2015 and good progress has been made in delivering against the agreed strategies and objectives. The 2010–2011 financial year results in a planned deficit for the third consecutive year – which represents the last of the deficit years included in the current Strategic Plan. The deficit of $1,180,616 has been funded from Reserves and is part of the APL’s Reserve Policy which recognises the long-term nature of some key R&D and marketing expenditure and is designed to smooth out these investments over a longer period, particularly in periods of lower levy income. The level of reserves held at 30th June, 2011 is above the minimum level required. Consumption of fresh pork, on a per capita basis, has again shown steady growth. This has been helped by the consistency in message and execution of the various marketing campaigns. The results of the International PorkFest campaign in April, designed to stimulate consumer demand during the peak production period, has shown some good early promise. Domestic production volumes grew by around three per cent over 2009–2010 and selling prices have been more consistent, resulting in smaller seasonal fluctuations. Feed grain prices