Hindsight to Foresight Where have we come from, where are we heading? | 14/06/2015 Andy Macfarlane, Dan Coup
| 14/06/2015 Andy Macfarlane, Dan Coup
| 14/06/2015 Andy Macfarlane, Dan Coup
Old Technology | 14/06/2015 Andy Macfarlane, Dan Coup
New technology, new opportunity | 14/06/2015 Andy Macfarlane, Dan Coup
Entrepreneurs + risk =
INNOVATION | 14/06/2015 Andy Macfarlane, Dan Coup
Message from Minister | 14/06/2015 Andy Macfarlane, Dan Coup
Endorsement PGP provides not only financial support and expertise 1. Independent panel has endorsed our strategy 2. Agreement that Passion2Profit will create value for deer industry and New Zealand | 14/06/2015 Andy Macfarlane, Dan Coup
2010 A major strategy review showed that: 1. We were vulnerable to market concentration risk in both venison and velvet 2. Industry collaboration could improve 3. On-farm performance gains were low, other than in velvet weights | 14/06/2015 Andy Macfarlane, Dan Coup
2011 - 2012 Worked towards an industry profit goal that was ambitious but achievable. | 14/06/2015 Andy Macfarlane, Dan Coup
Profitability Goal Our goal needed to be: 1. Market led 2. Underpinned by alignment between market requirement and on-farm production capability 3. Enabled by other value chain partners in such areas as research, logistics, quality control and processing. | 14/06/2015 Andy Macfarlane, Dan Coup
Profitability Goal Set ourselves some 10-year targets in 2012: 1. On-farm gains: • Fawning - Survival to sale 84% Or similar • Carcass weight 61kg combination • Kill date - 16 days • Kg output per hind 51kg • EBIT/kg venison +$1.48 2. Market gains: +$0.52 +$2.00 | 14/06/2015 Andy Macfarlane, Dan Coup
Fawning | 14/06/2015 Presented by Max Müller
Slaughter date Chart – Average slaughter date | 14/06/2015 Presented by Max Müller
Product Weights | 14/06/2015 Presented by Max Müller
Market gains Gains identified in 2012 would come from: 1. Diversified markets 2. Increasing % of chilled exports 3. Differentiation of farmed vs game in key market segments 4. Improved co-product value chain | 14/06/2015 Andy Macfarlane, Dan Coup
Passion2Profit An integration strategy: - pulling the value chain together | 14/06/2015 Andy Macfarlane, Dan Coup
Passion2Profit - refresher Overview… 1. Agreed by DINZ, NZDFA and Venison Marketers 2. $16m investment over 7 years • ~ $4m farmers, $4m marketers, $8m Crown 3. 50:50 - Marketing and Production | 14/06/2015 Andy Macfarlane, Dan Coup
Passion2Profit - refresher | 14/06/2015 Andy Macfarlane, Dan Coup
Passion2Profit - refresher | 14/06/2015 Andy Macfarlane, Dan Coup
Piloting is crucial “Go - Early” trials and pilots have been crucial to enabling momentum both on - farm and in market now we have official approval | 14/06/2015 Andy Macfarlane, Dan Coup
P2P – On-farm Where have we come from, what’s happening, what’s next… 14/06/2015 Andy Macfarlane, Dan Coup |
New ways of thinking An integrated farm systems approach, recognises: 1. Chosen production system 2. Terrain, soils, climate 3. Animal type 4. Staff skills and management preference Accounts for: 1. Feed production options available 2. Growth rates achievable | 14/06/2015 Andy Macfarlane, Dan coup
Example: System 1 Farm: 1. High degree of long term pasture 2. Hay and silage used in winter 3. Typically breeding only 4. Low cost structure | 14/06/2015 Andy Macfarlane, Dan Coup
Example: System 3 Farm: 1. Perennial ryegrass base 2. Supplemented with winter feed crops 3. Some specialist crops, e.g. lucerne or red clover 4. Typically breeding and finishing 5. Animals typically finished in summer (After the current chilled season) 6. Medium cost structure | 14/06/2015 Andy Macfarlane, Dan Coup
Example: System 5 Farm: 1. High degree of short-term feed (short-rotation ryegrass, chicory, red clover, plantain, lucerne, winter feed crops) 2. Prepared to use concentrate supplements as well as conserved feed 3. Orientated to finishing 4. Targets high % deer for chilled season 5. High cost structure, high output/Ha | 14/06/2015 Andy Macfarlane, Dan Coup
| 14/06/2015 Andy Macfarlane, Dan Coup
Outputs 1. Better description of farm system intensity 2. Case study examples of how the desired level of intensity can be achieved 3. Verified feed budgets (modelled, and checked by farmers using the system) 4. Verified financial budgets 5. Benchmarked to environmental metrics (resource use efficiency) 6. Framework for research and demonstration | 14/06/2015 Andy Macfarlane, Dan coup
Outcomes 1. Better visibility for farmers on “what system is best for me” 2. Assist in costing on-farm growth in numbers and production (for farmers and financiers) 3. Enables better reporting to other stakeholders (govt environmental, etc) 4. Better visibility of gains from P2P 5. Better targeting of research to where opportunities can be aligned to market | 14/06/2015 Andy Macfarlane, Dan coup
P2P – Marketing Delivering greater market returns for venison 14/06/2015 Andy Macfarlane, Dan Coup |
Price relative to game… | 14/06/2015 Andy Macfarlane, Dan Coup
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Price relative to beef, lamb | 14/06/2015 Andy Macfarlane, Dan Coup
Lost value | 14/06/2015 Andy Macfarlane, Dan Coup
Lost value | 14/06/2015 Andy Macfarlane, Dan Coup
Objective Develop sales outside traditional European game season 1. Sell more chilled… • Deliver venison to consumers in the form they value most highly 2. Co-benefits • Reduce supply pressure on frozen venison • Reduce storage, financing costs • Reduce market concentration risk | 14/06/2015 Andy Macfarlane, Dan Coup
How? Collaboration and support will enable effective market development investment 1. Market development is difficult for any single venison company • Risk of free-riders • Scale of investment required 2. Collaboration, with PGP support, will create necessary scale of action • Industry approach (Cervena™) has advantages | 14/06/2015 Andy Macfarlane, Dan Coup
Where? Europe and China 1. China is too big an opportunity to ignore • Has transformed dairy, lamb industries • Traditional affinity for deer (but not venison) 2. Europe is where we have existing partners • Customers who understand and care for our venison • A niche opportunity | 14/06/2015 Andy Macfarlane, Dan Coup
China China is very big and very complex and we need to figure out where to start 1. What city/province? 2. What cuisine style/sector? • Traditional Chinese • Western style 3. Begin with desktop market research of options 4. Move quickly to small-scale pilots | 14/06/2015 Andy Macfarlane, Dan Coup
Europe Need to create a new, distinct positioning for spring-summer grilling meat 1. Hirsch, Hertenvlees, Hjorte – are all eaten only in autumn – so this must be something different • New name • New cuisine style • New consumers 2. We need to understand what selling points will be most favourable for these new consumers | 14/06/2015 Andy Macfarlane, Dan Coup
Netherlands Cervena Pilot A very exciting first step in our collaborative strategy | 14/06/2015 Andy Macfarlane, Dan Coup
Netherlands Cervena Pilot Trialling the appetite for a new concept 1. Five marketing companies have agreed to experimental pilot launch of Cervena • Testing market acceptance • Testing marketing messages • Assessing volume potential 2. Trial commenced in April • Two Dutch partners, two suppliers 3. Will be rolled-out to more partners if successful | 14/06/2015 Andy Macfarlane, Dan Coup
DINZ 5-year Strategy Evolution not revolution 14/06/2015 Andy Macfarlane, Dan Coup |
Evolution not revolution Board in final stages of revising the Nov 2010 strategy in light of: 1. Global market trends 2. NZ farming challenges and opportunities | 14/06/2015 Andy Macfarlane, Dan Coup
Single integrated strategy A strategy encompassing all deer farming processing and marketing 1. Venison 2. Velvet 3. Co-products | 14/06/2015 Andy Macfarlane, Dan Coup
Strategic Objectives 1. Premium positioning • For all of our products to be “best in class” 2. Market development and diversification • Drive new demand and mitigate risk 3. Sustainable on-farm efficiency growth • Driving long-term alignment with market 4. Cohesive and respected industry • Ensure strong communication and networks | 14/06/2015 Andy Macfarlane, Dan Coup
Hindsight to Foresight 14/06/2015 Andy Macfarlane, Dan Coup |
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