Wesley Batista Jnr

The Future for the Red Meat Industry
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Steve Kay

Issues and Opportunities
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Dave De Garis

The GFC – What the future holds for business
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CONFERENCE SUMMARY
Registered Attendees – 370
Gala Dinner Seated – 335

Despite the economic climate, the AMIC 2010 Meat Industry Conference was well supported by Government and industry and all feedback received to-date remains very positive. Some of the major details were:

OFFICIAL GUESTS

Mr John Cobb, Shadow Minister for Agriculture.

Mr Shayne Neumann, Federal Member for the Queensland Seat of Blair, representing the Federal Minister for Agriculture.

MEDIA

ABC TV Landline took TV footage of the Conference and interviewed Keynote speaker Wesley Batista.

ABC Country Hour operated live from the Conference (Thur 2nd Sept.) Radio interviews included Wesley Batista (JBS Swift), Gary Burridge (Chairman – Australian Processor Council), Craig Cook (AMIC National Retail Council), Thos Gieskes (Rabobank), Steve Kay (US Cattle Buyers Weekly).

Rural Press were also present and will run a multipage feature on the Conference week ending 17 September.

CONFERENCE SPONSORSHIP

22 sponsors supported the AMIC Conference with Maersk Australia, Hamburg Süd, Rabobank, Australian Meat Processor Corporation and National Australia Bank our 5 premier sponsors. Other sponsors included:- AMCOR, ANZ Bank, Visy Packaging, Philadelphia Regional Port Authority, Port of Brisbane, Lumley Insurance, Marfret Compagnie Maritime, Sealedair Cryovac, Wiley & Co, Sydney Ports, Sheraton Mirage (Gold Coast), Grand West Insurance, Food Processing Equipment (FPE), Meat & Livestock Australia (MLA), Bemis Flexible Packaging, Multivac Packaging and Wirra Wirra.

TRADE EXHIBITION

The 24 booths were sold out well in advance of the Exhibition with new entrants this year from E+V Technology in Germany and Sandvik Process Systems in Sweden, Arrow Scientific, Swiss Steriplant, Bemis Flexible Packaging and Roxset Health & Safety Flooring. We thank all those who participated in the Trade Exhibition for their strong support of AMIC and the AMIC Meat Industry Conference and trust it was a successful promotion.

INDUSTRY AWARDS

SESSIONS / PRESENTATIONS

Keynote Speaker (sponsored by Rabobank) – Wesley Batista, President & CEO – JBS Swift USA. Mr Batista spoke on “The Future for the Red Meat Industry”. Wesley’s presentation was very well received and his charisma and commitment to the business was apparent.

Wesley provided a brief history of JBS Swift. At present as the leading protein producer and one of the largest food companies in the world, JBS Swift generates revenues of over US$30 billion per annum, employing 125,000 people worldwide with a market capitalisation of approx. US$11.5 billion. JBS Swift has capacity in over 77 units in a variety of countries to process over 90,000 head of cattle a day. JBS also processes over 7.2 million birds a day, has capacity in the US for 48,500 head of pork a day and 23,000 head of sheep in both Australia and the US.

The best way to get value from the carcase he told the Conference was selling the right cuts to the right markets. Interdependency between producer and processor he emphasised was essential and that both had to make money to be sustainable. No one alone can do everything. He said the way to improve our industry is to work together to expand demand over all, with food safety and genetic advances, key challenges for the future. Wesley also highlighted that Brazil used to be a cheaper supplier than Australia but changes in cost structures had seen costs equate to the point where Australia is now gaining access to what use to be more traditional South American markets such as Chile and Brazil.

Steve Kay (Editor & Publisher, US Cattle Buyers Weekly) spoke on “Issues & Opportunities into 2011”. Steve’s presentation, as usual covered the North American market in great detail, highlighting tight global beef supplies coinciding with improved demand as countries recover from the recession. This would mean higher beef and by-product prices with cattle numbers likely to grow over time. For now the US faces further declines in beef supplies in 2011. The EU became a nett beef importer in 2003 and will import even more beef in the future, including Russia. Asian markets will continue to support Australian and US beef products. China looms as a larger buyer. Steve also focussed on the US testing for E. coli O157 at Port of Entry, touching on the increased cost and risks for both exporters and importers it now posed.

AQIS-AMIC Panel Discussion on Meat Inspection Reformwas led by the joint Chairman of the Ministerial Taskforce set up to administer the Reform – Gary Burridge (AMIC) and Greg Read, Executive Manager of the Food Division within the Biosecurity Services Group of DAFF. Additional AMIC and AQIS staff participated in the Panel session.

The Export Certification Meat Inspection Reform Package (ECRP) was the result of the agreement between AMIC and Government over full cost-recovery of AQIS Certification Charges. The Minister for Agriculture, Tony Burke, announced agreement to a $127 million package on 18 Nov. 2009, close to $93 m of which went to the meat industry to implement the Meat Inspection Reform Agenda. The Reform is a once in a decade opportunity for change and an opportunity to introduce efficiencies and productivity gains not previously envisaged. It will involve a new Australian meat inspection system where qualified and authorised competent staff will operate under direct supervision of AQIS inspection employees.

Brett Thompson (Business Manager, Livestock - Woolworths Ltd) “The Australian Domestic Market for Red Meat”. Brett gave an interesting outline on Woolworths’ meat business in Australia as the ‘Fresh Food People’ with the capacity to process 44,000 head of lambs in 7 abattoirs each week and 8,500 head of cattle. Woollies did not purchase cattle from saleyards to process through their 6 beef abattoirs. Their commitment to meat industry skills was emphasised. 500 of their 800 stores still employ an in-store butcher and Woolworths remains the largest employer of meat apprentices in Australia.

Clinton Alcock (Managing Director, Grand West) “E. coli, sharks or Insurance – What is More Dangerous”. Clinton’s background in marketing and advertising brought a unique look at the world of risk and how it will affect you and your business including identifying and managing it and how to avoid the pitfalls that comes with it. Managing risk is a major component of a successful career in the meat industry.

Dave De Garis (Director/Senior Economist, National Australia Bank) “The Global Credit Crisis”. This proved a stimulating session chaired by Simon Quilty (Q-Exports) with the current economic conditions reviewed along with the chance of double-dip inflation in the US and forecasts on interest rates and exchange rates. David identified that the Australian dollar had traditionally fluctuated in a band between 60¢ and 80¢ to the US dollar. The resource boom driven by China had shifted this to a band between 80¢ to parity and was likely to stay in this range for the foreseeable future.

AMIC Members Forum (for Members Only) – This year’s Conference included a meeting of AMIC members chaired by Australian Processor Council Chairman Gary Burridge, along with the National Processor Council Chairman Terry Nolan and the National Export Lamb, Sheep & Goat Council Chairman Roger Fletcher. This was an opportunity for rank and file members of AMIC to ask questions on issues of specific importance to their business. Issues canvassed from the floor included live export, lamb definition, AQIS reform, remote printing of Health Certificates, market access and the Torbay Bill, among others.

Clinton Alcock (Managing Director, Grand West) spoke on life without risk and the meat industry and on the issue of insurance cover. The session was sponsored by Grand West

CONFERENCE PAPERS

AMIC is finalising permission from each of the speakers to have their papers posted on the AMIC website. As soon as this process is complete, we will advise all members and Conference attendees of where and how to obtain copies. Any queries after that point, contact the Executive.

PHOTOS

Professional photography of all events will be available and a montage of those should appear on the website shortly.

SUMMARY

Thank you to everyone who attended and to our sponsors, exhibitors, session chairmen and speakers. We hope this was a quality presentation that reflected the professionalism of the organisation and the industry. Any queries contact the Executive.

Steve Martyn National Director
Processing Australian Meat Industry Council September 2010

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© 2010 Australian Meat Industry Council (AMIC)