Dr Robert van BarneveldGroup CEO and Managing Director

Issues, Opportunities and Challenges in a Pork Value Chain – The SunPork Experience

• What is the “SunPork Group”• Why is SunPork in business?• Key statistics• Overview of the SunPork value chain• Issues, challenges and opportunities

Summary

What is the “SunPork Group”

• The SunPork Group produces affordable, nutritious food from pigs for consumers worldwide

• Our production systems are focussed on long-term sustainability• We are major supporters of rural communities across Australasia• Our farms are significantly enhanced through our genetics, technical,

veterinary, training, decision support, financial and nutrition services, efficient processing operations, and food and value-add businesses

Why Are We in Business?

Key Statistics

• 37 farms in Australia; 7 in New Zealand• 43,500 sows in Australia and New Zealand• 1000,000 pigs sold/annum in Australia and New Zealand• 60+% of production contracted • 1,300 staff• 260,000 tonnes of feed/annum• $400+ million annual turnover

Distribution

Genetics = Semen, live animals

Production = 41,000 sows, 900,000 pigs/annum

21,000 pigs/week11,500 SunPork

Exports = Offal, Carcass

Fresh Pork Boning = 1,800 pigs/day

700 commercial pigs/week

Processed =4 million kg hamCooked and fresh value-add (Eagle Farm and Kingaroy)

Industrial – pet food, render

Supermarkets

Butchers, Delis & Farmers Markets

Foodservice

Wholesalers

Supply Processing

SunPork Value Chain

External Customers = Semen, live animals, leased sows(80% free market share)

Technical = Nutrition, Vet, Training, Decision support, R&D

Fresh packaged cutsExternal

Farms

Welcomme,Park n’Shop

Supply, kill and bone via Big River Pork

Issues

• Integration• Right to farm• Biosecurity and disease• Judicious use of antibiotics• Human diet trends• Comparative cost of production

Challenges

• Matching pig supply to market growth• Extra Christmas volume• Development of export markets• Value-chain communication• Asset renewal• Value-chain interruptions

Value-Chain Interruptions

Value-Chain Interruptions

Challenges

• Matching pig supply to market growth• Extra Christmas volume• Development of export markets• Value-chain communication• Asset renewal• Value-chain interruptions• Full-carcase disposal

Full-Carcase Disposal

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Ribs Loin Belly Collar Shoulder Legs Hocks andBones

Other

Prop

ortio

n of

car

case

Cut

Standardised cost – All cuts = $4.71/kg

Opportunities

• Value-add products• Rate of genetic gain• Enhanced use of co-products• High health status genetic nucleus• Access to well-trained staff – Celebrating true diversity

• Harness the unique skills of autistic individuals in animal care roles• Affinity for animals• Exceptional ability to focus • Attention to detail• Comfort in repetitive activities

• Life-changing opportunities for autistic people in rural communities• HR outcomes• Optimal animal welfare• Diversity = different ideas, innovation

Diversity - Autism and Agriculture

Conclusions

• Whole value chain = visibility• Opportunities > issues and challenges• Communication and trust are key to a successful value chain• Never forget why your value chain exists