Sheep Industry Business Innovation

Industry Forum – SIBI Unplugged 29 August 2016

Background to the projectThe Sheep Industry Business Innovation (SIBI) project is assisting the industry in building capacity to supply new markets for sheep meat and live exports, particularly in nearby Asia and the Middle East – generating flow-on benefits to producers, industry, the regions, communities and the state economy.

It will achieve this by transforming the sheep supply chain to develop customer focused products for target markets. This involves the establishment of dedicated supply chains aligned to customer needs in new markets (predominantly international) as well as increasing business and technical skills of producers and processors in order to maximise their business’ efficiency, productivity and profitability to supply these new value chains.

As part of a wider industry engagement process and the contracted activity for the Sheep Alliance of WA to provide feedback and guidance on the SIBI project, an industry forum was planned.

Supporting your success

The event “SIBI Unplugged” is the first specific presentation to the wider WA sheep industry to communicate our objectives and progress against outcomes mid way into the project.

Project objectivesTo provide key sheep industry members with a clear picture of the value of the SIBI project and to get industry feedback on future project direction and value.

Expected Outcomes The WA Industry understands that SIBI focuses on the whole of the value chain The Sheep industry has greater support for the project throughout the value

chain Industry members develop stronger ownership through their input into SIBI

activities.

AchievementsThe event “SIBI Unplugged” was

held on the 29 August 2016 in Perth at UWA Club twenty industry members and 17 DAFWA staff, 15 of which were SIBI staff

(participants are listed in Appendix 1).

The first part of the forum highlighted in snapshot form the role of the project, current strategies for achieving the outcomes and a brief from each sub-project manager on their area. Three opportunities were also presented; chilled meat licence into China, the Lamb Survival Initiative and the sensor project.

The last half of the program was designed so that participants had opportunities to give feedback and discuss the future direction of the project. Four of the outcomes were used to focus the audience on the questions; What's working? What are the new opportunities?

Please see Appendix 2 for the complete program.

OutcomesThe presentation of achievements towards the outcomes by each sub-project manager gave a very high level overview of the activities in those areas.

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Figure 1. The key outcomes for the SIBI project.

Each of the sub project mangers presented an overview of their area in an engaging way, highlighting the areas being covered and some of the benefits.

Figure 2. The benefits expected from participation in a range of productivity skills training activities.

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The industry analysis section, presented by Kate Pritchett, discussed the flock dynamics including the level of reproduction rate required if the state is to maintain capacity.

Figure 3. Marking rates required to maintain the minimum turn-off of sheep in WA.

The session in “three opportunities” on the Lamb Survival Initative presented by Katherine Davies dissussed the format and results of the first two years of the program.

Beth Paganoni presented the latest information on the ‘sensor project’ that SIBI is co-investing with AWI, Murdoch and La Trobe Universities. The Actigraph sensors will be tested on the Resource Flock at KRF this season to measure their accuracy and ease of use for determining parentage against DNA testing and use of Pedigree Matchmaker.

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Figure 4. The sensors being used to determine parentage in sheep at KRF.

Feedback session:

The particpants were asked to break into groups and each group discussed a different outcome of the project;

1) Increased lamb and sheep turnoff

2) Increased confidence and capacity of industry to respond to market demand

3) New value chains

4) Better communication between customer, producer and industry

and focussed on two key questions

What’s working What are the new opportunities and areas for collaboration?

A summary of the discussion is below.

Increased lamb and sheep turnoff

Doing a lot of things right but need to do more of it to make adiffernce LTEM is good and successful LTEM brings more than increased productivity and

the technical ability.

o NEED : better attention to lamb marking rateso NEED: focus on multiple scanningo NEED: to do more to get groups engaged

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Increased confidence and capacity of industry to respond to market demand

Hard to see how the project will affect greater turnoff. Genomics are only bright spot.

It is still a challenge to make the sheep enterprise as efficient as possible. Other supply chain models aren’t applicable in sheep.

NEED: change the skill set of agents and buyers

NEED : More predictive market information service that gives producers an opportunity to plan

NEED: More communication to producers on the opportunities of new markets

NEED : more focus on risk and the value of off-setting risk with sheep.

NEED: better understanding about why producers aren’t investing in sheep.

New value chainsEngaged with the #1 red meat importer in China and the chilled licence.

Supply chain is working but the value chain is not. There are many vested interests which is disruptive.

NEED: systematic approach to supply and logistics – help the way forward.

NEED: a fundamental shift to make it happen.

Better communication between customer, producer and industryThere is shared concern over the decline and everyone sees it as an issue that needs to be addressed.

NEED: Total engagement of the industry sector

NEED: Sheep Alliance to be seen as providing leadership across the whole chain so it can all be talked about.

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IssuesDiscussion around the value chain at the meeting showed that most of the audience didn't understand or support the focus in this area and it's likely contribution to increasing the value of the industry. SIBI has failed to educate/promote the importance of having a supply chain focus.

SIBI staff also struggled to cohesively answer questions around the opportunities in aligning the value chain and didn’t have a value proposition so that participants could understand what was in it for them. We also struggled to show that the project is transformational.

The feedback session generated some good discussion, however, many of the audience hadn't enough time to digest the project objectives and achievements prior to having to answer the questions which limited the quality/ depth of the answers some what.

Some of the general feedback noted at the event was that;

There was too many producers and not enough participants further down the value chain – we could not attract any processors or reputable participants with a broad range of industry experience to attend the function.

The ‘snapshot’ approach didn’t allow enough detail around the project. There was a focus on activities rather than outcomes and that the activities

appeared to be still operating in the ‘work as usual’ category. SIBI is trying to cover too much – The Sheep Alliance fear that we don’t have the

capacity to achieve what we have set out to do. That the project isn’t creating enough partnerships with other programs and

specialist services.

Recommendations1. To address the issue of poor understanding of the concept of what a value chain

is and what it can bring to an industry SIBI work on a series of FAQs around the topic and have a facilitated session with industry proessionals such as Kim Bryceson (UoQ) and Phil Green (Greenleaf) to ensure the quality and clarity of information is captured. We also want to facilitate and engage with supply chain chaimpions like David Loch. The FAQ document could also form a basis for FAQs for the whole of the red meat industry (by working with NBF)

2. SIBI needs to ensure that it communicates to industry using project outcomes and not SIBI acitivities. We will build our use of the five outcomes into all of our presentations as a matter of priority.

3. Some of the most vocal opponents to the work or perceived value of the Dedicated Supply Chain work came from the Sheep Alliance board members indicating that further exposure to the concepts of the value chain by the board would be useful. It has taken SIBI some time to understand the opportunities and we have not brough the new board members along with us. Also work with the Alliance to co-op board members from across the value chain.

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4. Beforerunning an another industry briefing we need to lift the general awareness and understanding of the SIBI project so that a higher level of discussion and interaction can be had Therefore we spend more of our resources on communication through other channels to inform industry about our activities such as social media, more targeted media and stories.

5. We are also not engaging well enough with Grower Groups and are missing opportunities to bring producers on side with our activities. The Grower group engagement plan (currently in draft form) will be important in increasing our relationships in this area.

Report prepared by:M Curnow11 September 2016

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Appendix 1

Name OrganisationPam Edmondson Department of Regional DevelopmentKevin Lee Department of Regional DevelopmentMitch Morison Department of Regional DevelopmentAndrew Lindsay Alliance DirectorBindi Murray Alliance DirectorTim Watts Alliance DirectorWayne Pech Alliance DirectorAndrew Ritchie Alliance DirectorRichard Coole Alliance DirectorEsther Jones Alliance DirectorBrendon van Rensburg WA Senior Manager - AWTABob Hall Icon AgEd Riggall Ag Pro ManagementShimin Liu UWAMichael Hyder R & D Manager - Stirlings to Coast FarmersPeter Rowe Representing himselfKim Haywood Executive Officer of WAFarmersErin Gorter WALRC Co-Ordinator (Agvivo)

Paul OmodeiPlanfarm Pty Ltd (Farm Management Consultant)

Andrew Thompson Murdoch Univeristy, AWI Program Manager

DAFWA StaffMark Webb DAFWA – Acting DGChristine Thompson DAFWA - NBFKelly Flugge DAFWA – Indigenous Landholder ServiceBruce Mullan SIBI staffMarlie Espe SIBI staffMandy Curnow SIBI staffGina McPharlin SIBI staffRobin Jacob SIBI staffJulia Smith SIBI staffJustin Hardy SIBI staffSteve Tunbridge SIBI staffJohan Greeff SIBI staffJ P Collins SIBI staffKatherine Davies SIBI staffKate Pritchett SIBI staffGeorge Lorenzen SIBI staffBeth Paganoni SIBI staffTerry Burnage SIBI staff

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Appendix 2

1:00pm

Introduction and Welcome Dr Bruce Mullan, Project Manager, Sheep Industry Business Innovation

(SIBI)Dr Mark Webb, Director General, Department of Agriculture and Food WA.

1:10 pm Industry Context Dr Bruce Mullan

Principles of supply chain thinkingRole of SIBI over the next 2 years

1:20 pm

Overview of SIBI Sub Projects

Increasing business and technical skills (Steve Tunbridge) Dedicated value chains (Robin Jacob) Industry leadership and development (Julia Smith) Centre operations and research infrastructure (Justin Hardy)

Facilitated question, answer and comment session

2:05 pm[20 min]

Networking break

2:25 pm

2.30 pm

Modelling of lamb supply Kate Pritchett Three Great Opportunities

Lamb Survival Initiative - Katherine Davies Chilled meat product into China - Terry Burnage The sensor project (Fitbits for sheep) - Beth Paganoni

2:50 pm Participant feedbackFacilitator Andrew Huffer to outline the task - Aim is to help the SIBI project achieve its aims and have industry support and ideas for future

Provide input into the SIBI activity/outcome areao Increased lamb and sheep turnoffo Increased confidence and capacity of industry to respond to

market demando New value chainso Better communication between customer, producer and

industryPage 9 of 11

Each group to identify what each activity area should:o What activity has been valuable so far?o What should we continue doing or expand on doing?o New opportunities and areas for collaboration?

Plenary discussion (15 mins)

3:50 pmClosing Comments

Peter Metcalfe, Director, Grains and Livestock

4:00 pm Networking

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