corporate plan for meat promotion wales (hcc)€¦ · corporate plan for meat promotion wales (hcc)...

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CORPORATE PLAN

FOR

MEAT PROMOTION WALES (HCC)

2014 - 2017

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CONTENTS 1. Introduction 2. Overview of the Welsh Red Meat Industry Page 4 3. Challenges and Opportunities Facing the Welsh Red Meat Industry Page 7 4. Strategic Framework 2014-2017 Page 11 5. HCC Objectives and Targets (2014 - 2017) Page 14 6. Monitoring and Evaluation Page 23 7. Finance Page 24

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1. INTRODUCTION

1.1 Hybu Cig Cymru - Meat Promotion Wales (HCC) is the body responsible for the

development, promotion and marketing of Welsh red meat. This Corporate Plan covers the period 2014-2017.

1.2 The staff of HCC, under the direction of the Board of Directors and the Chief Executive Officer, have brought this plan together to fit within the context of the Strategic Action Plan for the Welsh Red Meat Industry (launched in April 2009). Welsh Red Meat Levy

1.3 The principle source of income of HCC is derived from Welsh Red Meat Levy which is jointly paid by producers and slaughterers/exporters, raised on all cattle, sheep and pigs slaughtered in Wales (which are fit for human consumption) or exported live.

1.4 Since April 2012 the Welsh Ministers have been responsible for setting and raising Welsh Red Meat Levy from abattoirs in Wales. Through a delegation agreement, HCC collect the levy from sheep, beef and pigs at the point of slaughter in Wales and undertake the statutory functions in relation to the Welsh red meat industry.

1.5 Statutory levy has existed in the red meat sector for a number of years to fund activities to assist with the development of this sector, notably work that would not be done under normal market conditions. This results from the fact that producers in these sectors, and in many cases processors too, are too small to be able to resource such areas of work themselves.

Board of HCC

1.6 Appointments to the HCC Board are made by the Welsh Ministers in accordance with the provisions of the Government of Wales Act 2006.

1.7 The Chair, Dai Davies, was re-appointed in October 2013 for a three-year term following an appointment exercise run in accordance with the Commissioner’s Code of Practice on Ministerial Appointments to Public Bodies.

1.8 The HCC Board was appointed in April 2013 for a three-year term, in accordance with the

Commissioner’s Code of Practice on Ministerial Appointments to Public Bodies.

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1.9 The HCC Board comprises both industry and independent representatives and represents the whole Welsh red meat supply chain. Board Members are as follows:

Dai Davies (Chair)

John Brereton Professor William Haresign Gwynn Angell Jones Bethan Wynne Jones Prys Morgan Graham Probert Glyn Roberts Richard Rogers Richard Tudor Wyn Williams John Yeomans

Strategic Action Plan for the Welsh Red Meat Industry

1.10 The Strategic Action Plan for the Welsh Red Meat Industry was developed by HCC in close consultation with the Welsh red meat industry and the Welsh Government and was launched by the Welsh Ministers in April 2009. It provides strategic direction for the Welsh red meat industry by identifying strategic objectives, actions and outcomes which seek to address the challenges and take advantage of the opportunities facing the industry.

1.11 The Action Plan seeks to deliver a profitable, efficient, sustainable and innovative Welsh red meat industry, which responds competitively to ever changing market trends and benefits the people of Wales. Four strategic aims have been identified, which HCC’s activities deliver against:

To improve the industry’s level of understanding of market trends and to influence consumer behavior;

To foster innovation and improve supply chain linkages;

To improve the business performance of processors in response to changing market conditions, environmental requirements, climate change and consumer demands; and

To improve the business performance of primary producers in response to changing market conditions, environmental requirements, climate change and consumer demands.

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2. OVERVIEW OF THE WELSH RED MEAT INDUSTRY

2.1 The Welsh red meat sector is an important primary production industry in respect of the rural economy and sustainable management of the landscape. Welsh red meat production contributed 43 percent of the annual total value of Welsh agricultural output, worth £594 million in 2012. Livestock Production

2.2 In 2013 there were over 4.2 million breeding ewes, a breeding beef herd (females aged 2 years or more) of 220,000 head, a breeding dairy herd (females aged 2 years or more) of 274,000 head and a pig breeding herd of 4,400 head.

2.3 The average farm income on LFA sheep and cattle holdings in Wales was £22,900 per farm

for 2012/13. This is a 36 percent decrease on the 2011/12 figure (in real terms at 2012/13 prices). The average farm income on lowland sheep and cattle holdings in Wales for 2012/13 was £30,200, representing a decrease of 20 percent on the year earlier figures (in real terms at 2012/13 prices). Farm income data is not recorded for Welsh pig farms. However data for specialist pig farms in England shows average farm income for 2012/13 to be £41,000, an increase of 4% on the previous year in real terms.

2.4 On average in 2012/13 enterprise returns on Welsh holdings covered only 87 percent of the

costs of lamb production and 59 percent of the costs of suckler calf production. The profitability of pig production and its competitiveness against international competitors are issues within the sector. However during the 2012/13 period producer prices did improve markedly. Abattoirs and Slaughterings

2.5 The abattoir and processing sector in Wales has experienced some uncertainty over the past year in terms of ownership, however the structure of the sector has remained relatively stable overall. The underlying problem of fluctuating and at times low profitability remains.

2.6 There are currently 23 operational red meat abattoirs in Wales, of which in 2012 four were

responsible for approximately 87 percent of the Welsh sheepmeat throughput and four for approximately 92 percent of the Welsh cattle throughput. Nine abattoirs accounted for approximately 90 percent of the Welsh pig throughput.

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2.7 In 2012, 61,500 tonnes of sheepmeat, 44,300 tonnes of beef and 2,200 tonnes of pigmeat was produced in Welsh abattoirs.1 The Importance of Trade

2.8 The GB market (particularly England) is an important market for the Welsh red meat industry as it is estimated that only five percent of red meat produced in Wales is consumed in the home market, whilst approximately 60 percent of the sheepmeat and 80 percent of the beef produced in Wales is consumed elsewhere in GB.2

2.9 Europe is also an important export market on which the Welsh red meat industry is heavily reliant to achieve premium prices and new and developing export destinations will provide future opportunities for the Welsh red meat industry. It is estimated that in 2012 over 34,000 tonnes of sheepmeat and over 18,000 tonnes of beef was exported from Wales to both the European market and wider afield. The combined total value of both lamb and beef exports from Wales in 2012 was worth approximately £184 million. Minimal volumes of pigmeat are exported from Wales. The export of sheep skins, cattle hides and offal equated to £33 million, bringing the total value of red meat exports from Wales in 2012 to £217 million.3

2.10 Total UK sheepmeat imports in 2012 were 86,000 tonnes (this figure stood at 101,000

tonnes in 2010) whilst 236,000 tonnes of beef and veal (238,000 tonnes in 2010) and 349,000 tonnes of pork (363,000 tonnes in 2010) were imported into the UK.

Consumption and Supply Chain Issues

2.11 Beef, pork and lamb consumption levels across the UK remain stable, with average consumption in 2012 for beef and veal, pigmeat and lamb standing at 18.1 kg, 25.4 kg and 4.4 kg respectively, per person per year (carcase weight equivalent).4

1 Production volumes are calculated using throughput figures at Welsh abattoirs only. No animals originating in

Wales which are slaughtered outside of Wales are included.

2 Estimated consumption figures are calculated using total Welsh red meat production figures - i.e. sheepmeat, beef

and pigmeat which is produced in Wales and which is slaughtered/ processed within and without Wales. This differs to the methodology for calculating production volumes noted above. 3 Estimated export figures are calculated using total Welsh red meat production figures - i.e. sheepmeat and beef

which is produced in Wales and which is slaughtered/ processed within and without Wales. This differs to the methodology for calculating production volumes noted above. 4 Average consumption in 2011 for beef and veal, pigmeat and lamb was 18.2 kg, 24.9 kg and 4.7kg respectively,

per person per year (carcase weight equivalent).

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2.12 The Welsh livestock auction market sector has remained relatively stable over the past year although an underlying problem of fluctuating and at times low profitability remains. During 2012, 26 livestock auction markets in Wales marketed over 1.2 million prime sheep and 14,000 prime cattle. Very few pigs were marketed through Welsh livestock auction markets.

2.13 In 2012 multiple retailers sold approximately 86 percent, 91 percent and 88 percent of all lamb, beef and pork sales respectively in Wales. At the same time, the volume of sales through butchers in Wales accounted for 9 percent, 7 percent and 7 percent of all lamb, beef and pork sales respectively.

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3. CHALLENGES AND OPPORTUNITIES FACING THE WELSH RED MEAT INDUSTRY

3.1 There are a number of challenges and opportunities facing the Welsh red meat industry - responding to political and environmental change, adapting to changing market conditions, embracing innovation and adopting technical best practice, and improving overall business management.

3.2 Although increases in market prices in recent years will have increased confidence in the long term sustainability of the Welsh red meat industry, these are driven by a shortening of UK, European and worldwide supplies of red meat. At the core, profitability remains the biggest challenge and there is a need to improve the overall confidence in the industry and encourage future investment. Rising input costs throughout the supply chain also pose a significant challenge to the Welsh red meat industry.

3.3 A summary of the main challenges and opportunities facing the Welsh red meat industry is

outlined below.

Political Change

Plan for and cope with policy changes and be in a position to advise policy makers on the implications of new policy and assist in the development of future policy.

Comply with existing and new legislative requirements and regulations in the most cost effective and timely way to enhance the reputation of the industry.

Influence regulation development and minimise requirements for the industry wherever possible.

Environmental Change

Capitalise on environmental credentials and the industry’s role in rural social life, so as to maximise opportunities to deal with diverse environmental pressures and demands and to positively assist both political and public perceptions of the industry.

Adapt to environmental legislation and requirements to promote the business benefits of good environmental management.

Share practice amongst producers, particularly in regard to how individuals have managed to sustain viable production whilst ensuring environmental protection.

Improve supply chain linkages, where appropriate, to conserve resources through improved operational efficiencies.

Ensure that contributions to policy regarding climate change are maximised, whilst ensuring continued economic sustainability.

Balance the needs of production with conservation of biodiversity and the environment, in a way that does not compromise longer-term sustainability.

Respond to legislation and requirements with regard to water and waste disposal (e.g. fallen stock and animal by-products), whilst paying due regard to environmental and economic sustainability.

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Ensure efficient management and disposal of water and effective pollution control, waste disposal and flood prevention measures.

Cope with increasing energy costs and issues by adopting energy saving and conservation techniques and making best/ most economic use of alternative energy sources.

Societal Change

The direct and wider benefits of Welsh red meat products need to be disseminated to consumers so as to promote the benefits of consuming Welsh meat products and to counter the threats to this consumption.

Respond to societal changes and take advantage of opportunities for product development as a result of globalisation.

New personnel to the Welsh red meat industry need to be encouraged and existing personnel supported to ensure the entire Welsh red meat supply chain has access to a pool of skilled labour.

Market Conditions

Advertise, promote and protect Welsh red meat and enhance the Welsh red meat brands, to be able to respond to global shortening of supply and increasing prices to the consumer.

Be in a position to trade effectively in a worldwide market place and respond to supply chain demands.

Improve supply chain linkages, where appropriate, through improved operational efficiencies.

Add value to Welsh red meat products and consider market opportunities for prime red meat, veal, mutton, etc.

Take advantage of experiences around the world, in regard to livestock performance and production systems.

Adhere to legislative requirements regarding food safety, food legislation and food labelling.

Enhance supply chain transparency and linkages.

Innovation and Technical Best Practice

Adopt new technology in order to improve business efficiency.

R&D and knowledge transfer should be targeted at the major issues relating to business performance and competitiveness of the industry.

Contingency planning is required to indicate the ways to best handle and analyse the impact of disease outbreaks.

3.4 CAP reform will pose a major challenge to the Welsh red meat industry in the short term as

Welsh producers come to terms with the full implications for their businesses of the change in European subsidies and their subsequent impact on regulatory burden and environmental management.

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3.5 Improving Animal Health and Welfare remains a challenge for the Welsh red meat industry. For example, in recent years Wales has seen a succession of wet summers and an increase in both the number of farms affected with liver fluke and the severity of infections on farms traditionally affected by the parasite. In addition to undermining animal wellbeing, disease has significant cost implications for the margins of both producers and processors. The disease priorities identified by the Animal Health and Welfare Strategy Steering group are helpful in providing HCC and other organisations with a focus in terms of addressing health and welfare.

3.6 The industry also continues to face challenges in reducing its impact on the environment whilst at the same time working towards improving their profitability. This requires the industry to enhance productivity whilst also taking steps to address aspects of greenhouse gas emissions, carbon footprint, water quality and use, countryside management and carbon conservation and sequestration

3.7 Livestock auction markets and large abattoirs are increasingly concerned with maintaining

their sources of livestock supply in the face of uncertainties around production levels whilst also attempting to cope with regulatory burdens. Processing plants in particular are under great pressure from fluctuating prices as a result of the instability in the energy and fuel markets, and increases particularly in waste disposal charges. They are also facing the financial burden of complying with regulatory requirements and future changes in meat inspection charges which will create a further challenge to these businesses. This is further compounded by the competitive nature of large supermarkets in a climate of where consumers are increasingly demanding of how their red meat products are produced and prepared at an acceptable price point and in the face of competition from other protein sources.

3.8 However, these challenges also present a number of significant opportunities for the Welsh red meat industry. The image of the ‘Welsh’ brand encapsulates premium fresh red meat products backed up by provenance and taste. The climate of Wales, the quality of its grassland, a family farm tradition and the commitment of all in the supply chain are all advantages for the industry to utilise. The location of abattoirs/ processing facilities close to production and the support available from the Welsh Government, HCC and industry partners also provide opportunities for the Welsh red meat industry. The Protected Geographical Indication (PGI) status for Welsh Lamb and Welsh Beef also provide the industry with the opportunity to develop differentiated products and Wales is well placed to respond to consumer demands for meat produced from well cared for livestock and in environmentally sensitive ways.

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3.9 The market within Wales provides a sound base for development of the sector as consumption of red meat is strong. There is also demand for food of more local origin. However, the GB market (particularly England) and European markets both remain key markets for Welsh red meat products, sourcing over 80 percent of Welsh red meat production. As such, the Welsh red meat industry is heavily reliant on these markets to achieve premium prices although the affect of the exchange rate on export market opportunities also provides potential opportunities or challenges to the industry which need to be taken into account.

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4. STRATEGIC FRAMEWORK 2014-2017

4.1 HCC is the industry-led organisation responsible for the development, promotion and marketing of Welsh red meat. The focus for delivery of the HCC strategic plan - to support the development of a profitable, efficient, sustainable and innovative Welsh red meat industry, which responds competitively to ever changing market trends and benefits the people of Wales - is through three departments (Market Development, Industry Development and Communications).

4.2 In order to meet the needs of the industry and to achieve the objectives identified by the Strategic Action Plan for the Welsh Red Meat Industry, this Corporate Plan summarises the planned delivery by HCC.

4.3 HCC will also continue to interact with DEFRA, the Welsh Government, the Food and Farming Sector Panel, government agencies and industry bodies to collaborate and jointly deliver activities where appropriate, to ensure the specific needs of different sectors within the red meat industry are taken into account. HCC will also continue to interact with other food and drink sectors to collaborate and jointly deliver activities where appropriate, to add value to Welsh produce. Market Development

4.4 The market development department aims to promote and develop high value markets

and Welsh meat brands and products on a global scale, in order to deliver the best possible returns for Welsh red meat farmers and processors.

4.5 The strategic objectives are as follows:

To position and promote PGI Welsh Lamb, PGI Welsh Beef and Pork as premium brands globally in order to influence trade and consumer behaviour;

To identify and pursue high value markets and market sectors for PGI Welsh Lamb, PGI Welsh Beef and Pork on a global scale through enhanced supply chain linkages and increased innovation; and

To improve the industry’s level of understanding of market trends in order to improve the business performance of processors in response to changing market conditions and consumer demand.

4.6 This will be achieved through robust and relevant market intelligence, strategic brand

positioning and promotion, and proactive market development programmes that protect, build and further diversify high value market opportunities for PGI Welsh Lamb, PGI Welsh Beef and Pork brands. Prioritised strategies and a partnership approach are key elements of the implementation process.

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4.7 HCC seeks to raise trade and consumer awareness of PGI Welsh Lamb, PGI Welsh Beef and Pork, and to influence perception of the brands in key markets by means of integrated media marketing campaigns and targeted activities, against a background of competition from other suppliers and protein sources and ever changing trade and consumer demand drivers.

4.8 The global economic crisis has resulted in meat purchasing being increasingly driven by consumer and trade insistence on quality at an acceptable price point (i.e. the value proposition). However, provenance together with the guarantee of safe, healthy, natural products with high standards of animal welfare, remain important drivers for high value/ premium markets and market sectors, especially in the wake of ‘horsegate’. Promotional campaigns and activities will address these key demand drivers.

4.9 HCC market development also seeks to identify and pursue the highest value market

opportunities for PGI Welsh Lamb, PGI Welsh Beef and Pork both in the UK and overseas through trade development programmes and activities. Increasing price promotions in the UK retail sector and resultant downward price pressure along the entire supply chain means that the export market plays an increasingly important role in underpinning the high returns HCC seeks to achieve on behalf of the Welsh red meat industry. HCC’s export focused trade development programmes and activities are, therefore, crucial in order to build trade demand for Welsh red meat on an international scale thus safeguarding the long-term interests of Welsh meat producers.

4.10 Market development activities are focused on the following key areas of delivery:

Brand communications;

Export;

Retail (key accounts and Welsh independents);

Food service;

New product development;

Consumer insight activities; and

Collaboration. Industry Development

4.11 The industry development department aims to work within the red meat industry in Wales to improve quality and increase cost effectiveness in a sustainable way.


To support the improvement of business efficiency of the Welsh red meat industry and mitigate the impact on the environment whilst ensuring economic sustainability; and

To support the Welsh red meat industry in embracing innovation and technology and improving linkages within the supply chain.

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4.13 This will be achieved through the provision of information as well as advancing, promoting and accustoming the use of technology within the industry.

4.14 The key drivers for maintaining a critical mass of sheep and beef numbers to support a viable red meat industry in Wales continue to focus on improving performance, reducing costs, improving the health status of the national flock and herd and minimising the environmental impact of red meat production.

4.15 Industry development activities are focused on the following key areas of delivery:

Research and Development (R&D);

Market intelligence;

Genetic improvement;

Knowledge transfer;

Training; and

Protected Geographical Indication (PGI).

Communications

4.16 The communications department aims to ensure that information regarding all aspects of HCC’s work is targeted effectively to reach stakeholders and the general public, using all available media.


To further enhance HCC’s reputation as the authority on the Welsh red meat sector, making the organisation the first point of contact for stakeholders and the media when they are seeking expert advice and information about the industry;

To maintain and strengthen existing media contacts and develop new relationships with journalists and food writers in Wales, the UK and internationally;

To maintain and further develop constructive relationships with politicians and policy makers in Cardiff Bay, Westminster and Brussels, keeping them fully informed of all aspects of HCC’s work; and

To work closely with all internal departments to generate news articles and features, leading to additional publicity and therefore increased demand for Welsh red meat products amongst consumers.

4.18 Communications activities are focused on the following key areas of delivery:

PR activities and monitoring;

Events, shows and educational activities; and

Collaboration.

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5. HCC OBJECTIVES AND TARGETS (2014 - 2017)

In line with the strategic aims of the Strategic Action Plan for the Welsh Red Meat Industry, the objectives and targets for HCC activity up to 2017 are as follows.

Strategic Aim 1 To improve the industry’s level of understanding of market trends and to influence consumer behaviour

Objective Targets (2014 – 2017)

1. To ensure the Welsh red meat industry has access to up to date and relevant information and advice to ensure informed decision making

Dialogue maintained with worldwide industry contacts to keep up to date with developments:

Retail data analysed and disseminated to processors

Export reports analysed and key data disseminated to industry contacts

Export volume and value data disseminated to the industry Market research (to identify new export market opportunities for Welsh red meat brands products) undertaken and relevant information disseminated in relation to:

Export markets

Consumer insight research

Supply chain analysis Relevant Welsh, UK, European and global market intelligence data analysed, interpreted and presented to the industry Meetings/conferences/events attended in relation to industry statistics and trends to disseminate key information Comprehensive, science-based reports on the impact of policies, economic trends or activities provided to the industry Market bulletins on current market intelligence published Information on benchmarking disseminated through cost of production publications

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1. To ensure the Welsh red meat industry has access to up to date and relevant information and advice to ensure informed decision making (continued)

Relevant industry statistics disseminated:

Little Book of Meat Facts published

Market intelligence press releases and articles issued

Up to date market prices disseminated to registered recipients via text messages

Market intelligence section of the HCC website updated

Feedback sought on value of reports and data to industry Media monitoring undertaken to keep up to date with developments Relevant newspapers, magazines, online sites and other media targeted through press releases, with regular analysis to evaluate effectiveness Advertising Value Equivalent of press coverage maintained HCC’s corporate social media activities (including Twitter and Facebook) developed Corporate website updated, website traffic increased and regular user surveys undertaken Regular meetings/updates maintained with major processors and Farmers Unions to disseminate relevant information and advice

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2. To inform consumers of the benefits of Welsh red meat in the diet, counter threats to consumption, highlight the essential role that livestock production plays in maintaining Wales’ landscape and biodiversity and highlight Welsh red meat production standards

Press releases and articles produced and disseminated to the media dealing specifically with positive red meat and health stories. Effectiveness of campaigns evaluated. Events aimed at the industry and consumers organised and attended to disseminate information Teaching materials for schools produced and disseminated:

Media teaching aids produced with the assistance of Meat and Education

HCC educational cookbooks disseminated to schools and universities DVD disseminated to raise awareness of employment opportunities amongst 16-18 year olds in the Welsh red meat industry Events attended to promote the healthy eating message. Questionnaires distributed linked to follow-up information on HCC website Cooking demonstrations organised in popular tourist destinations across Wales and at trade fairs and consumer shows to inform of the benefits of Welsh red meat:

Traditional and new media utilised to maximise publicity for events and provide information

Booklet produced encompassing aspects of Welsh food and culture

Newsletter for tourists disseminated and readership monitored Information gathered via surveys to determine public’s knowledge about the health benefits of Welsh red meat

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3. To advertise, promote and protect Welsh red meat, enhance the Welsh red meat brands and promote the industry overall

Awareness raising campaign undertaken in key European markets to maintain recognition of and preference for the PGI symbol, and awareness of PGI Welsh Lamb amongst consumers in target countries Integrated media marketing communications for PGI Welsh Lamb and PGI Welsh Beef brands undertaken in Wales to:

Maintain perception of PGI Welsh Lamb and PGI Welsh Beef brands as quality products

Increase awareness of PGI symbol

Increase awareness of PGI Welsh Lamb and ‘PGI Welsh Beef

Increase propensity to buy PGI Welsh Lamb/ PGI Welsh Beef’

Monitor proactive engagement of PGI Welsh Lamb and PGI Welsh Beef brands via website and social media

E-commerce site launched for Pork from Wales and marketing campaign developed Trade communications programmes delivered in UK and key international markets to raise awareness of Welsh red meat. Trade visitors to the website benchmarked Inward press mission from established markets facilitated and press coverage achieved in each market Demand for Welsh red meat stimulated in developing international markets:

Opportunities for exporters developed in priority new and developing export markets

Opportunities pursued through export agents familiarisation visit to Wales

Significant new opportunities pursued through participation in international trade shows alongside exporters of Welsh meat

Exploratory visits/outward trade missions undertaken to established and developing markets

Inward missions from potential new export customers facilitated

Trade marketing events facilitated in key export markets to stimulate trade demand for Welsh red meat brands

Potentially high value new markets pursued:

Promote the value of the Welsh red meat industry via UK Export Certification Partnership

Diplomatic visits to emerging markets undertaken alongside exporters of red meat

Inward inspection visit from emerging markets facilitated

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3. To advertise, promote and protect Welsh red meat, enhance the Welsh red meat brands and promote the industry overall (continued)

Marketing support provided to key export accounts to raise awareness and stimulate demand for Welsh red meat brands Correct labelling of Welsh red meat products in the independent and multiple retail sectors encouraged Correct labelling of Welsh red meat brands within export accounts encouraged by means of support and provision of secondary labels. Point of Sale (POS) materials developed to increase visibility of Welsh red meat New opportunities to encourage procurement of Welsh red meat by public sector pursued PGI Welsh Pork specification drafted and consulted upon with industry stakeholders and PGI application developed PGI Welsh Lamb and Welsh Beef inspections undertaken at all sites which use the PGI branding. Support provided to enforcement authorities Membership of the Butchers Club increased and multiple retailers influenced to sell more branded PGI Welsh Lamb and Welsh Beef Dialogue maintained with Welsh Government and other organisations/bodies to identify opportunities for collaborative activities

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Strategic Aim 2 To foster innovation and improve supply chain linkages


1. To encourage the development of added value Welsh red meat products

Dialogue with worldwide industry contacts bodies maintained to keep up to date with developments Initiative to extend Shelf Life of PGI Welsh Lamb undertaken Feasibility study completed into possibility of ‘value’ range of Welsh lamb for UK retail and feedback on viability sought. Export focused new product development feasibility study disseminated and feedback on viability sought Significant new opportunity in high value markets for fifth quarter products pursued

2. To improve linkages within the entire Welsh red meat supply chain and develop a coordinated approach (for economic and environmental purposes)

Dialogue maintained with Welsh Government and other appropriate organisations/bodies to discuss opportunities to collaborate and jointly deliver activities where appropriate Contribution by HCC to Welsh Government contingency planning activities, including policy development and relevant exercises. Extent to which contingency planning includes focus on market recovery. Selection for slaughter training delivered on farm, at livestock markets and abattoirs across Wales. Increase in knowledge monitored. Projects delivered and outcomes communicated effectively to enhance the sustainability credentials of Welsh red meat through extended shelf life initiative. Dissemination of relevant business improvement information at industry events Dissemination of information to producers and processors to encourage best practice through processor feedback Targeted information provided to inform the industry in relation to innovation

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3. To encourage the uptake of technology within the Welsh red meat industry

Dialogue with relevant organisations/bodies maintained to keep up to date with developments Projects supported which take forward implementation of technologies Study on testing and introducing automated carcase grading systems completed and introduction at major processing plants monitored

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Strategic Aims 3 & 4 To improve the business performance of processors and primary producers in response to changing market conditions, environmental requirements, climate change and consumer demands


1. To support the improvement of business efficiency

Research and Development (R&D) projects supported and reviewed - to meet the needs of the industry Relevant research meetings attended to keep abreast of new developments in agricultural research Uptake of performance recording, introduction of desirable traits, Artificial Insemination (AI) and Embryo Transfer (ET) maintained and increased Genetic improvement activities encouraged:

Information provided and events organised to highlight benefits and encourage participation in genetic improvement activities to provide more uniformity in live animals

Meetings and events held/attended with pedigree beef and sheep producers as part of genetic improvement activity.

Activities to improve animal health and welfare undertaken:

Priorities of the Animal Health and Welfare Strategy highlighted at meetings with feedback sought on value of activity

Materials available to highlight economic benefits of enhanced animal health and welfare

Parasitology Steering Group facilitated, in support of the Animal Health and Welfare Strategy

Extent to which animal health schemes are adopted and increased number of animals sold with evidence of health status

Technical information/literature in relation to animal health and welfare issues disseminated to producers at meetings, events and on-line

Abattoirs supported to explore options for working with suppliers on factors that influence business efficiency and environmental impact Meetings attended and articles/press releases posted on the HCC website to disseminate information on best practice. Coverage monitored and evaluated

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2. To support the industry in complying with and adapting to legislation and requirements (whilst ensuring longer-term economic and environmental sustainability) and seek to mitigate the sectors impact on the environment

Meetings/events attended and information provided on relationship between production and the environment Initiative on increasing the shelf life of PGI Welsh Lamb progressed Scholarship(s) awarded, with subsequent information dissemination, to encourage the industry to utilise experiences from around the World Meetings held/attended which address water management, pollution control or waste disposal

3. To encourage new personnel into the industry and support existing personnel

Further education opportunities through PhD’s and MSc’s supported to meet the needs of the industry Selection for slaughter events held for young people, colleges and Young Farmers Club groups New entrant initiatives supported

4. To advise, assist and influence policy makers and regulatory development with regard to the Welsh red meat industry

Relevant Government and industry consultations responded to in order to influence global/ EU/ UK/ Welsh policies and strategies to ensure commercial performance is not adversely affected Events and briefings for journalists facilitated, both in the UK and abroad - including HCC functions Newsletter containing a round-up of HCC and general industry news shared with key industry figures and politicians. Readership monitored regularly

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6. MONITORING AND EVALUATION

6.1 As part of the fulfillment of its objectives, HCC has set up a monitoring framework

which aims to:

Allow HCC to measure progress in meeting its objectives;

Provide valuable management information to the management team and Board of HCC;

Allow HCC to communicate its performance to external stakeholders on an ongoing basis; and

Provide a basis for evaluation at an appropriate time.

6.2 The monitoring framework extracts the actions and measurements from each departments’ plan within the business plan and monitors the performance against these targets throughout the year.

6.3 In order to measure progress and HCC’s success in meeting industry needs, baselines of key indicators for the Welsh red meat industry have been established. Future change will be measured against these baselines and change will be monitored on an ongoing basis.

6.4 It is also a responsibility of the HCC Board of Directors to monitor and evaluate the

delivery of activities by HCC (through the HCC Business Plan) and to ensure targets are met.

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7. FINANCE

7.1 Since April 2012, the Welsh Ministers are responsible for setting and raising Welsh

Red Meat Levy from abattoirs in Wales. Through a delegation agreement, HCC continues to raise the levy and deliver activities to support the Welsh red meat industry.

7.2 The Chief Executive of HCC fulfills the role of Accounting Officer (AO) for HCC. The

Chief Executive attends Board meetings to form the link between governance and management, with other Managers of HCC attending as required. Ultimately the AO is personally responsible for ensuring Welsh Red Meat Levy is spent appropriately.

Summary Income and Expenditure

Budget Forecast Forecast

12 months to 12 months to 12 months to

Mar-15 Mar-16 Mar-17

£000 £000 £000

Income Levy 3,496 3,500 3,500

RDP 950 909 -

WG Export 400 400 -

EU – Market Promotion 342 - -

Other Income 26 30 30

Total Income 5,215 4,839 3,530

Expenditure Advertising 890 840 820

Grant 1,350 1,309 -

Overheads 1,221 1,250 1,300

PR 257 200 150

Promotion Expenses 926 650 600

Publications 37 50 69 Research & Development 129 130 130

Shows 259 260 300

Technical 145 150 161

Total Expenditure 5,215 4,839 3,530

Surplus 0 0 0

corporate plan for meat promotion wales (hcc)€¦ · corporate plan for meat promotion wales (hcc)...

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