STRATEGIC PLAN 2018-2022 - AND BEYOND - Australian Meat Processor ...
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STRATEGIC PLAN 2018–2022 AND BEYOND
CONTENTS Introduction 1 About AMPC 2 Our activities 4 A message from our Chairman 6 Developing our strategy 8 Strategic Plan 2018-2022 12 Alignment with industry and government priorities 30 Five-year budget financials 34
INTRODUCTION
Risks and opportunities
abound for the red meat
processing sector.
Our purpose is to enable
Australia to build the
most sustainable red meat
industry, and this Strategic
Plan lays the foundation
for us to do so.
– Peter Noble, Chairman
This document outlines our Strategic Plan for 2018-2022, and provides an explanation of
the factors considered in developing the plan. While the plan presents the initiatives we
plan to address over the next 5 years, we have taken a truly strategic approach by looking
out to 2025 and beyond.
This plan is aligned with the Meat Industry Strategic Plan (MISP) 2020, which sets out the
overarching priorities for the red meat industry. AMPC’s identification of strategic
initiatives also takes into account other key industry elements such as the Australian
Government National Science and Research Priorities, as well as industry trends and
strategic risks.
AMPC acknowledges the significant contribution of the Commonwealth in remitting levy
funds for the advancement of the Australian red meat processing sector through RD&E
and marketing activities.
Our purpose Our vision Our strategy
Enable Australia to build To become a highly 1. Focuses on member
the most sustainable red regarded, world-class needs
meat industry provider of RD&E playing a 2. Diversifies funding
vital role in influencing and sources
Our mission growing the Australian red
3. D
evelops collaborative
To lead industry-level meat industry
networks and
strategy, innovation and relationships with
capability development for Our values
authoritative resources
our members, • Collaboration
4. S
trategically invests
stakeholders and • Innovation in research,
communities
• Creativity implementation of R&D
• Challenge the and marketing
status quo initiatives by harnessing
the world’s best ideas
• Continuous
and skills that deliver
improvement
industry-wide benefits
AMPC Strategic Plan 2018-2022 1
ABOUT AMPC AMPC is the declared processor research and development and marketing donor company for the Australian red meat industry. 2 AMPC Strategic Plan 2018-2022
ABOUT
AMPC
Strategic Plan 2018-2022 Collaboration
As part of the funding agreement between AMPC engages with many key industry
THE ROLE OF AMPC
the Commonwealth and AMPC, we are stakeholders to ensure that levies are
required to maintain and review a three- to effectively invested in RD&E and marketing The Australian Meat Processor
five-year Strategic Plan. The plan provides projects of value to the industry. To ensure Corporation (AMPC) is the rural
a medium- and long-term view of the steps that the RD&E priorities of processing research and development
required to ensure the long-term members are considered, we work closely corporation for the red meat
sustainability of the red meat processing with the Australian Meat Industry Council processing industry in Australia.
sector and the broader industry. Six (AMIC) (the peak industry council) and the Our mandate is to provide research,
strategic themes clearly define the advisory body Red Meat Advisory Council development, extension and
investments needed to allow AMPC to help (RMAC). In addition, we engage with marketing services that improve
achieve these goals. Australian Government agencies, such as the productivity, profitability and
The plan was developed in consultation the Department of Agriculture and Water sustainability of the industry.
with AMPC members, levy payers, the Resources, to ensure effective alignment Red meat processor levies are
Commonwealth, peak industry councils and delivery of industry and government strategically invested in programs
and other stakeholders. priorities. that deliver a range of benefits
To deliver our programs, we engage with a for the industry and the broader
Our activities diverse group of RD&E providers from Australian community.
AMPC administers statutory levies on both the public and private sectors that
behalf of 105 processing members provide expertise and perform scientific
operating 135 meat processing studies driven by our consultation process.
establishments – in total representing 97% Collaborating organisations include
of Australia’s red meat processing capacity. universities, R&D corporations, research
institutes, the Commonwealth Scientific
We seek to develop useful strategies,
and Industrial Research Organisation
identify innovations and build the
(CSIRO), and Cooperative Research Centres
capability of our members, stakeholders
as well as other industry providers in
and their communities. We do so by:
Australia and overseas. We will continue to
• Focusing on members’ needs develop strategic partnerships and
• Diversifying funding sources alliances with other organisations that
• Building collaborative networks and have complementary capabilities.
relationships Extension activities are critical to the
• Strategic investment in research and effective uptake of RD&E investments in
marketing initiatives and harnessing the industry, which is why we continue to
the world’s best ideas and skills. work with the Meat Industry Training and
Advisory Council (MINTRAC) to ensure
processors embrace RD&E and other
AMPC-funded work.
AMPC Strategic Plan 2018-2022 3
OUR
ACTIVITIES
AMPC’s RD&E and Marketing activities
are divided into three programs which
are driven by our Strategic Plan and
consultation with our stakeholders.
The Core Program
is supported by
an industry-wide
consultation process
aimed at identifying
and delivering
innovative outcomes.
4 AMPC Strategic Plan 2018-2022
The Core Program The Joint Program The Plant Initiated
The Core Program, divided into five The Joint Program delivers supply chain
Projects (PIP) Program
sub-programs, addresses key issues improvements that support food The Plant Initiated Projects (PIP)
facing processors in terms of safety, data integrity, eating quality and Program enables processors to identify
productivity, profitability, sustainability, increased demand for red meat and undertake RD&E projects that
integrity and capability. It is supported domestically and internationally. The generate whole-of-industry benefits by
by a robust industry-wide consultation program is collaboratively funded by trialling and adopting new technologies
process aimed at identifying and AMPC and Meat & Livestock Australia at operating plants. These efforts are
delivering innovative outcomes. (MLA), using both processor and supported by private investment in
Funding comes from processor levies producer levies, as well as matching industry RD&E as well as matching
and matched government funding government funds for eligible activities. government funds for eligible activities.
(where applicable).
AMPC sub-programs
1. 2. 3. 4. 5.
Processing Environment & Processing Hygiene, Capability, Extension Industry Improvement
Technologies Sustainability Quality & Meat Science & Education & Economic Analysis
Improve process Improve industry Increase the standards Translate and Understand the
efficiency, reduce sustainability through of food safety, product communicate AMPC’s economic impacts
production costs and environmental, integrity and eating RD&E activities to and levers for the
facilitate improved value economic and social quality, while delivering stakeholders, industry through
capture through the outcomes new insights into including key training economic modelling,
use of technology effective process initiatives at both statistical analysis,
throughout the red interventions for the research and benchmarking and
meat processing industry and broader vocational levels networked
value chain community information flows.
AMPC Strategic Plan 2018-2022 5
A MESSAGE
FROM OUR
CHAIRMAN
We have taken a long-term view of what
challenges and opportunities will arise
for our industry into the future, and how
we can best position the organisation
to deliver value to our stakeholders.
Our strategy planning commenced in Secondly, we want to unlock markets,
2016 when we commissioned research to nationally and internationally. If Australia’s
identify megatrends and analyse what an red meat industry is to capitalise on the
effective industry might look like beyond opportunities that improved market
2025. We then collaborated with access and reduced trade barriers for red
professional services organisation EY, meat exports bring, we must ensure our
whose desk-based research of the responses to these opportunities are
Australian and international red meat targeted, effective and make the most of
industries was supplemented by a our competitive advantages. To this end,
comprehensive stakeholder survey. too, AMPC will encourage closer industry
Together we drew up a strategy collaboration, conduct research into new
document that clarified our purpose, distribution and sales channels and
vision and mission; examined the explore ways in which the industry can
industry risks and how these were access new markets.
interconnected, as well as how they were The third theme is to protect and promote
impacted by the megatrends we had the industry. We can achieve this in a
highlighted; and identified six key themes variety of ways. Establishing sustainable
to deliver on our strategy. levels of production, increasing processors’
These six themes form the foundation of capabilities and skills, and providing AMIC
our strategic plan – and each has specific with relevant information to support
objectives. Firstly, we want to shape the successful policy development on their
future of the red meat industry by behalf with government and stakeholders.
ensuring each stage of its value chain is We must also improve the industry’s social
sustainable. To do this we believe that licence to operate, promote red meat
AMPC must establish itself as an industry consumption and, importantly,
leader in research and development and communicate more effectively the
marketing. We must also play a role in significant contribution the industry makes
restructuring the industry so there is to Australia’s social fabric and economy.
better coordination between partners,
more informed decision-making, and
increased transparency in the
procurement process.
6 AMPC Strategic Plan 2018-2022
Fourth, we want to build enduring industry Finally, we need to strengthen our internal
relationships. We aim to do this by capabilities to enable us to become a
establishing an ‘open innovation network’ world-class RD&E organisation. With many
that identifies commercial opportunities industry bodies and commercial
that improve the industry’s competitive organisations providing RD&E to the red
position. For AMPC to effectively meat industry, we have identified the need
implement its Strategic Plan 2018-2022, we to strengthen and improve our own RD&E
will need to work collaboratively with all activities and outcomes. Doing so will
our stakeholders to this end. By contribute to better efficiency in our RD&E
establishing strong industry relationships, efforts and help to ensure our research
we will be better positioned to drive delivers real commercial opportunities.
collaboration and information sharing that I commend this report to you and invite
can, in turn, be used to improve our you to take a closer look at the details of
research and development portfolio. each of these strategic themes. We look
The fifth theme is to diversify funding forward to your engagement and
sources. By diversifying our income involvement in our plan. Only by working
streams such that thirty percent of our together can we sustain and grow our
annual funding comes from bodies other industry to its full potential.
than government, we will be better
positioned to control, sustain and enhance
our research, development and extension
services (RD&E). Moreover, if we can
commercialise the intellectual property
that our projects develop, AMPC, its
research partners and the industry as a
whole will reap significant benefits. Peter Noble, Chairman
AMPC TOMORROW –
OUR PLANS FOR THE FUTURE
We’re making a concerted effort to move towards
an ‘open innovation operating model’. In-residence
HORIZON 3
Entrepreneurs
OPEN INNOVATION
NETWORK
Start-ups Academic
Y
AMPC is a globally recognized RD&E
OG
player within its field and plays a
Institutions
OL
crucial role in the development of
HN
the red meat industry Student
Communities
TEC
HORIZON 2 & Research
CH S
EAR Institutions
THOUGHT LEADER RES DEMIC
A
RESOURCE NETWORKS AC
AMPC starts delivering value to members
from projects where they are actively STR
involved in the development AL ATEG
LIA AMPC Group
NC IC
ears
ES Companies
MEM
3-5 y
Consultants
URDLE
B
ERS
HORIZON 1 Alliance Industry Bodies
H
We are here
2
KICK OFF Partners
AMPC facilitates RD&E
without being directly
involved in the research and Sleeping giants awake: Brazil &
innovation development China will leapfrog technology and
rs
dominate global meat market
yea
1-3
URDLE
H
1
Decline in slaughter numbers &
national herd will force shut
down of marginal processors Source: ‘Renewing growth from industrial R&D’ 2004
AMPC Strategic Plan 2018-2022 7
DEVELOPING OUR STRATEGY In developing this plan, we considered the highly complex industry operating environment, drew on relevant themes from the Meat Industry Strategic Plan 2020, and cemented our direction for AMPC. 8 AMPC Strategic Plan 2018-2022
OPERATING
ENVIRONMENT
Our Strategic Plan 2018-2022 is based on an assessment of these factors to better understand the future
outlook of the industry and ways to more effectively respond to the associated challenges and opportunities
the industry is likely to face. While the following section provides a snapshot of the key trends and risks facing
the industry, a full analysis of the external factors (Strategic risks report: Strategic Risks Facing the Australian
Red Meat Industry and industry sustainability report: A Feast of Ideas) can be found on our website.
STRONG EMERGING MARKET GROWTH CLIMATE CHANGE AND AN INCREASINGLY
AND SIMPLER ACCESS TO MARKET CHALLENGED RESOURCES ENVIRONMENT
Over the coming years, the intensity of In light of changing weather patterns, extreme weather events, declining
competition in the international red meat industry resources and higher requirements for reduction of greenhouse gas emissions,
is predicted to increase with newly negotiated economic viability is no longer the sole criterion for business performance.
free and bi-lateral trade agreements between Agriculture and food businesses including processors will be required to
nations. India and South American countries are demonstrate and provide evidence of their sustainability credentials.
likely to become increasingly significant, with
Australia competing at a cost disadvantage.
HIGHER GLOBAL STANDARDS
AND NEED FOR SOCIAL
LICENCE TO OPERATE
INCREASED The increasing scrutiny based on the
REGULATORY environmental consequences, healthy diets
COMPLEXITY and animal welfare issues of the red meat
As an industry that is highly industry will continue to decrease
fragmented both vertically and consumption and lead to more regulatory
horizontally, Australia’s red
1 restrictions. Consumers now
2 expect greater transparency and
meat sector is poorly placed
to respond to an increasingly 3 processors will be required to maintain a
uncertain regulatory high level of social licence to operate.
environment where changes
can occur rapidly. By focusing
on proactive engagement, DIGITAL
it will be best positioned TRANSFORMATION
to influence regulators. New communication tools
offer many opportunities
for the industry. They will
allow AMPC to help
processors and their value
RISING EXPORT chain partners share
DEPENDENCE information and adopt new
In light of the declining per practices and technologies.
capita consumption of red
meat in domestic markets, the CHANGING
Australian red meat industry CONSUMPTION PATTERNS
is primarily driven by
In developed countries such
exports, with three-quarters
as Australia, the consumption
of Australian beef and veal
of red meat will continue to
production being sent
decline. Consumption patterns
abroad each year. In the
are changing and consumers are
context of increased
turning to alternative sources of
competition, efforts to protect
protein and substitutes that are
and promote the industry
cheaper, less resources-intensive
nationally and internationally
and more animal-friendly.
will remain key levers for
product differentiation.
CHANGES IN THE WAY WE WORK AND
CONSUMER AWARENESS AND FOCUS NEED FOR SUPPLY CHAIN INTEGRATION
ON FOOD SAFETY AND QUALITY As our industry responds to climate variability and changing
regulations, production costs will continue to rise. To match
Consumers and customers are paying more and more
global technological advancement, capture scale economies,
attention to where their food comes from and the story
maintain profits and respond to potential regulatory changes, we
behind it. Food provenance and integrity systems have
must rapidly move towards a completely integrated and
become buzzwords in the meat market where Australia
collaborative value chain where industry alignment, capability
still benefits from its long-standing reputation as a
transfer, information sharing and fast adoption of new automation
leader in red meat integrity and quality.
and measurement technologies are the priorities.
AMPC Strategic Plan 2018-2022 9STRATEGIC
DIRECTION
The Strategic Plan 2018-2022 takes a RD&E consultation
framework
long-term view of the steps required to The AMPC consultation framework
ensure the sustainability of the red meat aims to identify, prioritise and develop
strategic research initiatives in a
processing sector and the broader industry. balanced research portfolio. It seeks to
help develop ideas generated by our
AMPC’s strategy clearly sets out its annual member survey, with the aim of
identifying and prioritising the most
purpose and role within the industry, and important needs of processors.
guides the organisation in all of its actions. We integrate input from our members
into the Portfolio Development Process
(PDP), which involves industry
consultative committees, known as
program advisory committees, which
provide strategic and technical input on
priorities for investment within the five
core programs. AMPC also partners
with research providers to consider the
latest developments in science and
1 PURPOSE 2 WE ARE
technology, to guide and support the
Enable Australia to build Innovators and industry- development of projects.
the most sustainable wide collaborators
red meat industry delivering value to Australian The evaluation process
meat manufacturing
The Annual Operating Plan (AOP) will
‘operationalise’ AMPC’s Strategic Plan
2018-2022. At the end of each financial
year, we will compile an annual report
3 WE VALUE 4 WE AIM to assess the year’s investments in
• Openness to collaboration, To make stakeholders feel RD&E and marketing activities.
innovation and change engaged, informed,
• Continuous improvement respected, valued, Links between AMPC’s
• Long-term planning partnered and empowered RD&E programs and
• Industry pride
the MISP 2020 Plan and
• Moving forward
Industry Risks and Trends
Our RD&E projects are aligned with our
5 OUR STRATEGY 6 OUR FOCUS AREAS Strategic Plan 2018-2022 that sets out
Focuses on the needs of our •M anufacturing capabilities six strategic imperatives. These serve as
members to deliver and efficiencies terms of reference for our RD&E
sustainable industry-wide • Increasing market access activities and, in turn, align with the Red
benefits. and value Meat Advisory Council’s MISP 2020 plan.
• Industry sustainability The MISP 2020 takes a broader
perspective, defining overarching
priorities for Australia’s red meat and
7 OUR OUTPUT 8 OUR OUTCOME
livestock industry. These relate to the
Research, development, Creating a strong, positive, production and processing of beef,
extension and marketing trusted and influential mutton and goat meat as well as
services that improve the presence for Australian red live exports.
productivity, profitability and meat manufacturing
sustainability of the industry Both the MISP 2020 and AMPC’s
Strategic Plan 2018-2022 take into
account industry trends and risks.
10 AMPC Strategic Plan 2018-2022AN INDUSTRY-DRIVEN
STRATEGY
INDUSTRY TRENDS
Mega trends Industry-specific trends
PILLARS OF THE MISP 2020
Consumer & Market growth & Supply chain efficiency Productivity & Leadership &
community support diversification & integrity profitability collaborative culture
INDUSTRY RISKS
Changing
International Regulatory Value chain Social licence to Climate
consumption
competition environment integration operate change
patterns
Themes of AMPC’s Strategic Plan 2018-2022
Shape the future
of the industry
Strengthen re RD&E Program
capabilities to Co St
’s re Unlock
PC
become a
world-class R&D
a markets
AM
m
organisation
s
Processing Environment &
technologies sustainability
Industry
Processing
improvement &
hygiene, quality
economic analysis
and meat science
Protect and
Diversify
promote the
funding sources Capability, industry
extension & education
Build enduring industry
relationships
AMPC Strategic Plan 2018-2022 11STRATEGIC PLAN 2018-2022 Our Strategic Plan consists of 22 initiatives across six themes, each with specified outputs and timelines that will culminate in effective value delivery to our stakeholders. 12 AMPC Strategic Plan 2018-2022
STRATEGIC INITIATIVES
Six strategic themes form the foundation of AMPC’s Strategic Plan
2018-2022. Each theme has specific objectives and intended
outcomes aiming at positioning AMPC to deliver on its purpose.
Across these themes, a total of 22 targeted initiatives have been identified as key priorities to be delivered by 2022.
The details of each are further illustrated in subsequent sections of the document.
Themes
SHAPE THE UNLOCK PROTECT AND BUILD ENDURING DIVERSIFY STRENGTHEN
FUTURE OF THE MARKETS PROMOTE THE INDUSTRY FUNDING CAPABILITIES TO
INDUSTRY INDUSTRY RELATIONSHIPS SOURCES BECOME A WORLD-
CLASS R&D
ORGANISATION
Objectives
Ensure the Reverse and grow Establish sustainable Establish 30% of AMPC’s AMPC is internationally
sustainability of each international levels of production sustainable levels of annual funding is recognised for
stage of the value per-capita and increase the production and achieved from breakthrough RD&E
chain across the consumption while capability and skill set increase the alternative with commercial
industry. achieving a of processors and the capability and skill funding sources. implications supporting
sustainable position broader industry. set of processors a more sustainable
in high-value, and the broader global red meat
high-growth markets. industry. industry.
Outcomes
• A streamlined red • Understand and • Improve community • Political and • Provide AMPC • Transition to new
meat industry with exercise sentiment towards governmental with adequate innovation-focused
reduced bureaucracy requirements for red meat relationships and consistent operating model fully
and more efficient sustainable consumption and aligned with funding to in line with AMPC’s
governance competition. the benefits it brings AMPC’s Strategic implement Strategic Plan
processes. • AMPC will have a to a healthy lifestyle. Plan 2018-2022. RD&E programs. 2018-2022.
• In-depth strong presence in • Improve long-term • Close and • Identify new • Obtain internal
understanding of the relevant material growth of the collaborative funding sources capabilities and
red meat value chain trade delegations to industry via cost relationships with outside of culture necessary to
and establishment of push the industry reduction across world-class RD&E traditional transform into a
a red meat towards a the red meat value services providers. sources of world-class RD&E
information sustainable position chain driven by • AMPC obtains government and provider.
database. internationally. productivity focused industry-wide industry • Empowerment to
• Accessible best • Reduce non-tariff RD&E. reputation as an participants. select portfolio
practice RD&E to trade barriers • RD&E solutions to R&D information investments based on
improve productivity through further improve the supplier of choice. reliable and accurate
at all stages of the concentrated and integrity of the red information.
value chain. coordinated meat value chain in • A foundation of high
industry actions. human health and standard policies and
nutrition, animal procedures.
welfare and food
safety. • Fit-for-purpose IT
landscape that allows
• Focus enhancement
for data mining and
on environmental
provides member
priorities and how
access.
to act upon them.
• Increase awareness
of the benefits
associated with red
meat consumption.
• Improve community
awareness of the
red meat industry.
AMPC Strategic Plan 2018-2022 13THEME 1:
SHAPE THE FUTURE
OF THE INDUSTRY
Objective Description
To build a sustainable future for the
Ensure the Australian red meat industry, AMPC must
sustainability of each establish itself as an industry leader in
terms of RD&E, thought leadership and
stage of the value marketing. This theme has been
developed to ensure AMPC plays an
chain across the red important role in contributing to
meat industry. re-shaping the industry’s structure, and
better positioning itself in the international
market. AMPC will proactively drive
industry change by supporting an
optimised industry structure that enables
better coordination between industry
partners and informed decision making.
This theme’s objective is supported by
three initiatives that focus on the red meat
value chain and an effective use of
industry bodies that support it. Further, it
seeks to improve the procurement
process through increased transparency
and making best practice RD&E widely
accessible along the value chain.
14 AMPC Strategic Plan 2018-2022Initiatives and linkages to MISP 2020 priorities
1. O
ptimise the red meat industry structure 2. S
treamline procurement 3. Establish and share industry best practices
Due to the lack of formal and informal There is a current lack of information- The industry needs a single source of
integration along the value chain, AMPC sharing along the value chain. AMPC will industry best practice knowledge that
seeks to streamline governance work towards greater information sharing AMPC members and stakeholders can
processes and improve overall industry to establish more trust between value access to improve their commercial
efficiency. This initiative aims to untangle chain participants, while improving activities. As this is essential for the
the ‘spaghetti bowl’ structure, improve productivity and agility to respond to the industry as a whole, AMPC seeks to
accountability and decision making and changing industry environment through establish a productivity improvement
will help the industry focus on achieving a enhanced collaboration and sharing of plan and best practice program.
sustainable future. information.
Supply Chain Efficiency and Integrity S
upply Chain Efficiency and Integrity
‘Optimising product quality and cost ‘Optimising product quality and cost
efficiency’ & ‘Guaranteeing product efficiency’ & ‘Guaranteeing product
and systems integrity’ and systems integrity’
Outputs1
•R
e-launch the AMPC brand as a newly •A
ustralian information database plan •P
roductivity improvement
reinvigorated organisation with a clear Estimated completion date: implementation plan
purpose and strategy. 31 December 2017 Estimated completion date: 30 June 2019
Estimated completion date:
•V
alue chain analysis by AMPC and • Industry best practice productivity
31 December 2017
industry bodies program for processors
•R
ed meat industry structure map with Estimated completion date: 30 June 2018 Estimated completion date:
other industry bodies 31 December 2019
•A
ustralian information database
Estimated completion date:
implementation •D
evelop an archive of leading industry
31 December 2017
Estimated completion date: 30 June 2019 knowledge
• Industry optimisation plan with other Estimated completion date: 30 June 2018
•V
alue chain implementation plan with
industry bodies
government support •P
ublish archive of best practice
Estimated completion date:
Estimated completion date: knowledge within the industry
31 December 2017
31 December 2018 Estimated completion date:
•O
ptimisation implementation plan with 31 December 2018
other industry bodies
•S
upport AMIC in providing a
Estimated completion date: 30 June 2018
‘Single Voice’ for the industry
•O
ptimisation plan implementation Estimated completion date:
Estimated completion date: 31 December 2018
31 December 2018
•A
chieve wide scale adoption of best
practice in the industry
Estimated completion date:
31 December 2021
Outcomes
A streamlined industry with efficient In-depth understanding of the red meat Accessible best practise RD&E to improve
governance. value chain and establishment of a red productivity at all stages of the value
meat information data base. chain.
1 Outputs serve as key performance indicators to measure the progress in realising AMPC’s strategic theme objectives.
AMPC Strategic Plan 2018-2022 15THEME 2 :
UNLOCK
MARKETS
Objective Description
As improved market access and reduced
Reverse and grow trade barriers for red meat exports open
international per-capita markets to more countries, Australia’s red
meat industry will need to capitalise on
consumption while this opportunity through a targeted and
effective response that leverages
achieving a sustainable Australia’s competitive advantages.
position in high-value, This theme’s objective is supported by
high-growth markets. three initiatives that focus on improving
market access, both internationally and
nationally. To improve Australia’s current
international market access arrangements,
AMPC will seek to influence the industry to
better collaborate to help improve access
to these markets. We will need to conduct
research into the key distribution
channels, as well as identify alternative
sales channels and how the industry can
access these new markets.
16 AMPC Strategic Plan 2018-2022Initiatives and linkages to MISP 2020 priorities
1. I mprove value chain competitiveness 2. I ncrease market access 3. Reduce trade barriers
In view of Australia’s increasing reliance In the past few years, significant Non-tariff trade barriers, e.g. technical
on red meat exports, this initiative strives improvements have been made with barriers to trade (TBTs), remain an
to increase collaboration with Australian regard to FTAs. However, both the important constraint in key export
exporters and have a coordinated processing sector and wider red meat markets and a collaborative effort
approach to trade that identifies the industry will benefit from better- between the industry and government is
requirements of Australian red meat in coordinated negotiation of free trade or required to reduce the number and
international and national markets. multilateral trade agreements. This severity of TBTs, enabling more profitable
This will identify and assess high-value, requires greater industry collaboration to access to these markets.
high-growth markets for new products ensure agreements negotiated by the
or services provided by the government are consistent with long-term
Australian industry. industry requirements.
Market Growth and Diversification
Market Growth and Diversification M
arket Growth and Diversification
‘Efficiency and value in trade and ‘Marketing and promoting Australian ‘Efficiency and value in trade and
market access’ red meat and livestock’ market access’
Outputs1
• Identification of high-growth, high-value • Domestic demand, retail strategy and • Reduction in export compliance cost for
internal target markets and segment sales channels analysis the industry
according to demand attributes and Estimated completion date: 30 June 2018 Estimated completion date: 30 June 2020
buying practices
• AMPC establishes a key role in relevant • Reduction in quantity of restricted red
Estimated completion date:
trade delegations meat for export markets
31 December 2017
Estimated completion date: 30 June 2018 Estimated completion date: 30 June 2021
• High-value, high-growth market plan
• AMPC works to become preferred body
and new product and service
for understanding and negotiating red
implementation
meat issues within free trade and
Estimated completion date: 30 June 2018
multi-lateral trade agreements
• International brand campaign for Estimated completion date:
premium markets 31 December 2019
Estimated completion date: 30 June 2019
• The industry has an integrated strategy
• Implementation of a red meat export to manage FTAs
tracking tool Estimated completion date:
Estimated completion date: 30 June 2019 31 December 2019
• Government provided with consistent
documentation and messaging to better
support their trade strategy
negotiations and activities
Estimated completion date: 30 June 2020
Outcomes
Understand and exercise requirements AMPC will have a strong presence in Reduce non-tariff trade barriers through
for sustainable competition. relevant material trade delegations to concentrated and coordinated industry
push the industry towards a sustainable actions.
position internationally.
1 Outputs serve as key performance indicators to measure the progress in realising AMPC’s strategic theme objectives.
AMPC Strategic Plan 2018-2022 17THEME 3:
PROTECT
AND PROMOTE
THE INDUSTRY
Objective Description
Proactive and effective stakeholder and
Establish sustainable government policy development is
levels of production required to improve the industry’s social
licence, promote red meat consumption
and increase the and communicate that the industry is a
sustainable, economic and social
capability and skill set contributor to the Australian economy.
of processors and the This theme’s objective addresses the
broader industry. current trend of decreasing per-capita red
meat consumption in developed markets
and increasing community focus on
environmental and welfare issues. AMPC
will promote the industry, educate the
community on the social and health
impacts of red meat, and improve the
productivity of the broader industry.
18 AMPC Strategic Plan 2018-2022Initiatives and linkages to MISP 2020 priorities
1. E
ffectively manage the reputation of the red 2. I mprove productivity of members and the 3. I mprove wellbeing of members, the broader
meat industry broader industry industry and communities
To determine the key focus areas of RD&E Due to an increasing reliance on export Consumer reaction to animal
from a community sustainability markets by the red meat industry, mistreatment is strengthening, and
perspective, an understanding of the coupled with the relatively higher consumer responses to food safety
current community sentiment towards production costs of Australian red meat, incidents will potentially substantially
red meat consumption and its associated there is a need to improve overall impact red meat consumption. Therefore
health impact is required. Additionally, industry sustainability through targeted AMPC seeks to provide RD&E solutions
understanding the difference in urban key processing cost reduction RD&E as that focus on the integrity of the red meat
consumer perceptions compared to well as focus on increasing processor value chain and support their
regional perceptions is necessary. capabilities and skills. effectiveness, commercialisation and the
development of strategic policy.
Consumer and Community Support
S
upply Chain Efficiency and Integrity C
onsumer and Community Support
‘Red meat in a healthy diet’ ‘Optimising product quality and cost ‘Welfare of the animals within our care’
efficiency’
P
roductivity and Profitability ‘Processing
productivity’. This excludes farms,
feedlots and live export productivity.
AMPC’s mandate is to provide RD&E
and marketing services for the red meat
processing sector.
Outputs1
• Plan and approval of national consumer • R&D productivity research plan • Research plan to improve welfare and
red meat perception analysis Estimated completion date: integrity
Estimated completion date: 31 December 2017 Estimated completion date:
1 September 2018 31 December 2017
• Collaborative structures for industry
• AMPC national marketing plan research bodies to better collaborate, • Member and consumer welfare policy
Estimated completion date: share, and align their productivity Estimated completion date: 31 March 2020
31 December 2019 research in place
• Results for productivity research plan
Estimated completion date: 30 June 2018
• AMPC omni-channel media campaign available for use for marketing and
Estimated completion date: • Productivity enhancing R&D education
31 December 2019 commercialised and made available to Estimated completion date: 31 March 2020
industry participants
• Role of red meat in society plan
Estimated completion date: 30 June 2019
Estimated completion date: 31 May 2020
Outcomes
Improve community sentiment towards Improve long-term growth of the industry RD&E solutions to further improve the
red meat consumption and its via cost reduction across the red meat integrity of the red meat value chain in
contribution to a healthy lifestyle. value chain driven by productivity human health and nutrition, animal
focused RD&E. welfare and food safety.
1 Outputs serve as key performance indicators to measure the progress in realising AMPC’s strategic theme objectives.
AMPC Strategic Plan 2018-2022 19Initiatives and linkages to MISP 2020 priorities (continued)
4. Reduce environmental impact 5. Enhance food marketing and communications 6. I ndustry promotion
Consumers’ reduced consumption of red The industry requires an increased To improve community support for the
meat is partly driven by environmental awareness of the benefits of red meat industry, AMPC will develop marketing
considerations. Through RD&E programs consumption to ensure that it remains a plans to grow and improve community
that reduce the environmental footprint staple in the diet of consumers. AMPC awareness of: the benefits of red meat
of red meat production, AMPC will more seeks to enhance red meat marketing and consumption; the benefits of the
effectively be able to promote the communications through the industry through employment,
environment and economic sustainability establishment of customer-focused investment and infrastructure; as well as
of the industry. platforms that support end-users to better the ongoing improvement of the
understand the role of the red meat sector industry’s social and environmental
in Australian society, and the importance impacts.
of red meat consumption in a healthy
lifestyle.
C
onsumer and Community Support C
onsumer and Community Support C
onsumer and Community Support
‘Stewardship of environmental ‘Stewardship of environmental resources’ ‘Red meat in a healthy diet’
resources’
L
eadership and Collaborative Culture
‘Promoting and protecting our industry’
Outputs1
• Red meat environmental impact • Active public engagement through digital • Media and stakeholder map through
research plan platforms industry collaboration
Estimated completion date: Estimated completion date: Estimated completion date:
31 December 2018 31 December 2018 31 March 2018
• Results for environmental impact • Education and awareness • Implementation of industry
research plan available for marketing marketing campaign marketing strategy
and education Estimated completion date: Estimated completion date: 30 May 2019
Estimated completion date: 30 June 2020 31 August 2018
• Identify appropriate platform
• Implementation of marketing campaign for monitoring of the industry
through various channels marketing strategy
Estimated completion date: Estimated completion date: 30 June 2019
31 December 2019
Outcomes
Focus enhancement on environmental Increase awareness of the benefits Improve community awareness of the
priorities and how to act upon them. associated with red meat consumption. red meat industry.
1 Outputs serve as key performance indicators to measure the progress in realising AMPC’s strategic theme objectives.
20 AMPC Strategic Plan 2018-2022THEME 4 :
BUILD ENDURING
INDUSTRY
RELATIONSHIPS
Objective Description
For AMPC to effectively implement its
Establish an Open Strategic Plan 2018-2022 it will need to
Innovation Network that work collaboratively with all industry
stakeholders to enhance the overall
delivers commercial sustainability of the Australian red meat
industry. Moreover, by establishing
outcomes that enduring industry relationships, AMPC will
substantially improve be better positioned to drive greater
future industry collaboration and
the competitive position information sharing that can be leveraged
of the industry. to improve the overall R&D portfolio it
manages.
AMPC Strategic Plan 2018-2022 21Initiatives and linkages to MISP 2020 priorities
1. S
trengthen government and policy market 2. G
row network of leading service providers 3. Support successful development of all
relationships members
AMPC will enhance it’s government An assessment of the capabilities of To ensure that AMPC develops its
relationships to support AMIC in world-class RD&E organisations is members to the fullest, we must ensure
improved policy drafting and decision required, in order to enable AMPC to that members always have access to the
making at the federal and state level, and identify which RD&E organisations it latest valuable processing content
influence policy debates and discussions should develop relationships with. focused on industry best practice, current
as they occur. and historical RD&E, and industry
developments.
Leadership and Collaborative Culture
L
eadership and Collaborative Culture L
eadership and Collaborative Culture
‘Building industry capability’ & ‘Building industry capability’ ‘Building industry capability’
‘Promoting industry capability’
Outputs1
• Brief key Government members on • Capability analysis of AMPC’s • Member communication plan that
AMPC’s Strategic Plan 2018-2022 and R&D providers outlines how members will be
strategic risk assessment of the red Estimated completion date: communicated with, the cadence for the
meat industry 31 December 2018 communications and key messages
Completed: 31 January 2017 Estimated completion date: 30 June 2018
• Analysis of the Australian red meat
• Develop a state and federal political and industry RD&E market needs • AMPC knowledge-sharing portal for
government stakeholder map, outlining Estimated completion date: members
key relationships that AMPC currently 30 June 2018 Estimated completion date:
has at a Board and executive level and 30 June 2019
• Build close and collaborative
key relationships that need to be
relationships with the key national and • Realising the online portal and
developed
international R&D service providers that consistent member communications,
Estimated completion date:
AMPC has identified as best matching AMPC will develop a reputation as a
31 December 2017
market needs reliable supplier of red meat processing
•D
evelop communication plan based Estimated completion date: knowledge
on political and government 31 December 2019 Estimated completion date:
stakeholder map 31 December 2019
• Integrating world-leading ideas and
Estimated completion date: 30 June 2018
practices into AMPC RD&E processes
•W
ell-managed, functional and strategic Estimated completion date:
relationships across government bodies 31 December 2020
working within the red meat industry
Estimated completion date:
31 December 2018
Outcomes
Political and governmental relationships Close and collaborative relationships with AMPC obtains industry-wide reputation
aligned with AMPC’s Strategic Plan world-class R&D services providers. as an R&D information supplier of choice.
2018-2022.
1 Outputs serve as key performance indicators to measure the progress in realising AMPC’s strategic theme objectives.
22 AMPC Strategic Plan 2018-2022THEME 5:
DIVERSIFY
FUNDING SOURCES
Objective Description
By diversifying funding sources, AMPC
30% of AMPC’s annual will be better positioned to control,
funding comes from sustain and enhance its RD&E within the
industry. Moreover, by diversifying
alternative funding through the commercialisation of
Intellectual Property (IP) developed by
sources. AMPC projects, we and our research
partners will have a clearer focus on the
role our RD&E plays – for commercial
purposes, rather than pure academic
research – and how it needs to be used
to further the objectives of the industry
and AMPC.
AMPC Strategic Plan 2018-2022 23Initiatives and linkages to MISP 2020 priorities
1. C
ontrol, sustain and enhance existing funding sources 2. Identify alternate sources of funds
The current variability in funding limits AMPC’s ability to conduct Historically, AMPC has not commercialised the IP it has
consistent RD&E. developed. By changing our focus, it will be better positioned to
improve its overall financial sustainability through future royalty
revenue streams. Additionally, by becoming a recognised
commercialisation body, we will become a more attractive
partner for institutional R&D organisations and researchers.
Leadership and Collaborative Culture ‘Building industry
capability’
Outputs1
• Optimise IP ownership with view to benefit • Align with research partner and apply for the Commonwealth’s
Australia’s red meat processing industry in Department of Agriculture and Water Resources Round 4 Rural
uptake of technology. Research and Development for Profit grant
Estimated completion date: 30 June 2018 Estimated completion date: 1 December 2017
• Co-investment plan with industry to provide R&D and • Establish member outreach program for R&D grants, regional
commercialisation of R&D for the processor or service and economic development grants and R&D tax concessions
providers to processors industry Estimated completion date: 30 June 2019
Estimated completion date: 31 December 2020
• Identify and implement a new funding model that develops
multiple alternate sources of revenue
Estimated completion date: 31 December 2020
• Identify and commercialise existing and/or current research
conducted by AMPC
Estimated completion date: 31 December 2021
• Establish strategic partnerships with universities for R&D and
commercialisation
Estimated completion date: 30 June 2018
Outcomes
Provide AMPC with adequate and consistent funding to initiate Identify new funding sources in addition to the traditional
RD&E programs. government and industry participants.
1 Outputs serve as key performance indicators to measure the progress in realising AMPC’s strategic theme objectives.
24 AMPC Strategic Plan 2018-2022THEME 6 :
STRENGTHEN
CAPABILITIES
TO BECOME A
WORLD-CLASS
RD&E ORGANISATION
Objective Description
With multiple industry bodies and
AMPC is internationally commercial organisations providing RD&E
recognised for to the red meat industry, AMPC has
identified the need to improve its RD&E
breakthrough RD&E activities and outcomes. By strengthening
our internal capabilities, we will be able to
with commercial support an RD&E program that facilitates
implications resulting improved collaboration, greater speed in
conducting RD&E and enhanced
in a more sustainable commercialisation of the research.
international red meat
industry.
AMPC Strategic Plan 2018-2022 25Initiatives and linkages to MISP 2020 priorities
1. A
lign operational structures to long-term strategic objectives 2. G
row network of leading service providers
To ensure that AMPC’s development is in line with its Strategic To grow AMPC’s internal capabilities and culture necessary to
Plan 2018-2022, we must transition our operating model and the transform into a world-class RD&E provider, we need to identify
associated processes, procedures, decision rights, the skills we require. The initiative also seeks to reform AMPC’s
accountabilities, and capabilities to fall in line with the long-term culture to better align with this Strategic Plan and our
objectives of this Strategic Plan. organisation’s purpose.
Leadership and Collaborative Culture ‘Building industry
capability’
Outputs1
• Innovation strategy to be approved by the Board • Identify capability gaps within the organisation
Completed: 31 August 2016 Estimated completion date: 30 June 2017
• Innovation-focused operating model consistent with AMPC’s • Identify what capabilities to acquire, retain on consulting terms,
Strategic Plan 2018-2022 to be approved by the Board and develop in-house
Completed: 31 August 2016 Estimated completion date: 30 June 2017
• New CEO hired • Internal capability plan
Completed: 28 February 2017 Estimated completion date: 30 June 2017
• Transition from the current operating model to the innovation- • Implementation of program of culture change to become more
focused operating model complete professional, customer focused and outcome driven
Estimated completion date: 30 June 2018 Estimated completion date: 31 August 2017
• RD&E advisory board incorporated • Hire external capabilities
Estimated completion date: 31 December 2017 Estimated completion date: 31 August 2017
• Opportunity to establish an editorial RD&E board with the • Publish a minimum of five research publications from AMPC
purpose of reviewing and publishing RD&E evaluated by AMPC research annually
Estimated completion date: 30 June 2019 Estimated completion date: 30 November 2018
• Attain demand-driven partnerships with researchers
as a result of AMPC’s performance and reputation
Estimated completion date: 30 June 2018
• Develop world-class industry people
Estimated completion date: 31 December 2019
Outcomes
Transition to new innovation-focused operating model fully in Obtain internal capabilities and culture necessary to transform
line with AMPC’s Strategic Plan 2018-2022. into a world-class RD&E provider.
1 Outputs serve as key performance indicators to measure the progress in realising AMPC’s strategic theme objectives.
26 AMPC Strategic Plan 2018-2022Initiatives and linkages to MISP 2020 priorities (continued)
3. Support successful development of all 4. Raise the standard of policies and 5. Enable effective IT solutions to support
members procedures service delivery
The capability for AMPC to make It is crucial for AMPC to have a high To empower AMPC’s decision making
investments based on reliable and standard in policies and procedures in capabilities there is a need for a clearly
accurate information is crucial to the order to become a highly regarded RD&E defined data management and
development and sustainability of our organisation. There is a requirement for governance strategy. Further, data
portfolio. Further development of transparency and consistency in management processes and systems
performance management methodology reporting, communications and allowing for value adding services such as
is therefore a priority to oversee assessment that needs to be predictive data analysis should be
future projects. incorporated into daily routine in our accessible by AMPC partners, and
RD&E activities. support us in commercialising our R&D
activities.
Outputs1
• Performance management strategy • Ensure compliance with the statutory • Map of current IT infrastructure and
defining the portfolio development funding agreement identification of potential gaps
process Completed 30 June 2017 Estimated completion date:
Estimated completion date: 30 June 2018 30 September 2016
• Have adequate policies and procedures
• Investment management strategy for a research organisation of AMPC’s • Evaluation of IT/ERP systems
informing AMPC of ROI and benefits target aspirations performance and match as a central
obtainable within specific areas Estimated completion date: 31 December records system
Estimated completion date: 30 June 2018 2017 Estimated completion date:
30 September 2016
• Project evaluation tool linked with
AMPC’s Strategic Plan 2018-2022 and • Development of data governance
enables measurement of performance management system
through KPIs Estimated completion date:
Estimated completion date: 31 December 2017
31 December 2017
• Historic project performance evaluation
Estimated completion date:
31 December 2018
Outcomes
Empowerment to select portfolio A foundation of high-standard policies Fit-for-purpose IT landscape that allows
investments on reliable and accurate and procedures. for data mining and provides member
information. access.
1 Outputs serve as key performance indicators to measure the progress in realising AMPC’s strategic theme objectives.
AMPC Strategic Plan 2018-2022 27TRANSFORMATION
ROADMAP
The following is a high-level
implementation roadmap of the
22 strategic initiatives developed to
enable AMPC to deliver on its purpose.
2016 201
THEME INITIATIVE
Q3 Q4 Q1 Q2
1: Optimised industry structure
SHAPE THE FUTURE
2: Streamlined procurement
OF THE INDUSTRY
3: Industry best practices
1: Improve value chain competitiveness
UNLOCK MARKETS 2: Increase market access
3: Reduce trade barriers
1: E
ffectively manage the reputation of the red meat industry
2: Improve productivity of members and the broader red meat industry
PROTECT AND 3: I mprove wellbeing of members, the broader red meat industry and communities
PROMOTE THE
INDUSTRY 4: Reduce environment impact
5: Enhance food marketing and communications
6: Industry promotion
1: S
trengthen government and policy market relationships
BUILD ENDURING
INDUSTRY 2: Grow network of leading service providers
RELATIONSHIPS
3: Support successful development of all members
1: Control, sustain and enhance existing funding
DIVERSIFY
FUNDING SOURCES
2: Identify alternate sources of funds
1: A
lign operational structures to long-term strategic objectives
STRENGTHEN 2: Grow AMPC’s capabilities and culture
CAPABILITIES
TO BECOME A 3: Enhance performance management
WORLD-CLASS R&D
ORGANISATION 4: Raise the standard of policies and procedures
5: Enable effective IT solutions to support service delivery
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