Building an Who Integrated is involved Value Chain Farming - PDF document

Building an Who Integrated is involved Value Chain Farming Finishing Added Value 40,000 acres Head Office & Farms 70,000 breeding ewes 250,000 lambs per year Processing Domestic & Export Markets Land 40,000 acres 1 Building an Integrated Value Chain Gary Alexander, General Manager North American Lamb Company

Staff Sheep 18 Head Office 70,000 Breeding Ewes 35 on Farm Romney Dorset Cross 90 in Processing Moving to Highlander Composite 300 Dogs Lambs 250,000 Processed per year 19 kg (42 lbs) Carcass Finished on Variety of Crops NZ Rideau Arcott Lambs October 2018 The Sheep Business is Dysfunctional and Declining Why do this But That Creates Huge Opportunity 2 Building an Integrated Value Chain Gary Alexander, General Manager North American Lamb Company

NZ Lamb Processing 20 million Lambs per Year The Biggest Problem is If You Do What Everyone Does Consistent Livestock 80% of NZ Industry You Get What Everyone Gets Supply 1% of • Consistent Numbers NZ Industry • Year Round • In Specification NZ Breeding Ewes 2017 Canada Market Supply millions of head 30 28 Federal 13% 26 Provincial 24 22% 22 NALC Production 20 about 6% of 18 Current Decline of 9 million head Consumption 16 Imports 14 65% 22,500 tonnes 12 10 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Vertical Integration Lamb Value Chain Market Sales & Distribution How Building Capability to Manufacturing Achieve Long Term are we doing it Sustainable Returns Processing Finishing Breeding Genetics 3 Building an Integrated Value Chain Gary Alexander, General Manager North American Lamb Company

Canada Lamb Supply Chain CANADA Processing Breeding Finished Lambs Market Lambs Growing Finishing Breeding Lambing Barn Breeding Ewe Build 37,000 27,500 17,700 11,000 6,800 3,800 Start Nov Oct 2014 Oct 2015 Oct 2016 Oct 2017 Oct 2018 Oct 2019 Oct 2020 Oct 2021 Oct 2022 2013 Stony Mountain Lamb Growing Future Expansion 4 Building an Integrated Value Chain Gary Alexander, General Manager North American Lamb Company

Lamb Finishing Producer Opportunities Processing Long Term Commercial Deals What Based on DiFoTiS are the opportunities Delivery in Full on Time in Spec Finishing Breeding Genetics 5 Building an Integrated Value Chain Gary Alexander, General Manager North American Lamb Company