Southern Regional Livestock Exchange Strategic Plan

Transcription

1 Southern Regional Livestock Exchange Strategic Plan

2 Southern Regional Livestock Exchange October 2008 Pre roof Southern Regional Livestock Exchange 20 th July 2011 Page 2 of 16

3 Contents Mission Statement 4 Page Introduction 5 Strategic Planning 5 Objectives of the SRLE 5 Key Objectives 6 Site Plans 7 SRLE Catchment Area 8 Throughput 9 Target 10 Marketing 10 Capital Expenditure/Facility Improvement 12 Financial 12 Other Opportunities 15 Why Sell at the Southern Regional Livestock Exchange 15

4 SOUTHERN REGIONAL LIVESTOCK EXCHANGE Mission Statement Continue the development of the Southern Regional Livestock Exchange (SRLE ) as the preferred centre of choice in the Southern Highlands, Southern Tablelands, MacArthur and Illawarra Regions. Vision Statement To maintain the history and heritage of the SRLE whilst encouraging growth by being a leader in safety, cattle care and innovative marketing with modern technological facilities. Corporate Strategy SRLE is a business unit of Council that is committed to: A viable enterprise Providing a return on the investment to council. Maintaining and continuing to improve the facility whereby it is recognised as the saleyard of choice for stakeholders delivering both quality, through best practice livestock marketing, animal welfare, and improved sales values Manages risk to ensure that they are reduced to a minimum including: Financial Public liability WH&S for employees, contractors, Stakeholders using the facility Continually enhance and improve the facility to meet best practice. Page 4 of 16

5 Introduction SRLE is an integral part of the Rural Community and accordingly needs to ensure the following: Best Practice community facility WH&S Compliance Viability Effectiveness Risk minimization Good Governance Asset sustainability Strategic Planning The strategic direction of SRLE is provided by an Advisory Board (the Board) comprising three Councillors from Wingecarribee Shire Council and three community representatives. The community representatives bring to the Board an extensive experience in finance, agri-business consulting and rural agency. The strategic plan is the Board s program for SRLE to achieve the objectives to implement the mission statement. It should be noted that this approach requires a regular review and updating according to changing influences. The two elements of the plan are: 1. Overall strategies with a clear mission and objectives for long term 2. An annual operational plan for short term objectives, maintenance, day to day operation, marketing, capital expenditure and compliance incorporated into an annual budget. The Strategic Plan is the blue print for the long term vision of the SRLE. Objectives of the SRLE Maintain and enhance community wealth; Maximise the revenue that can be derived from the use of the facility Provide a continuing business opportunity for stakeholders; Ensure all risks are managed by those directly involved; Provide a facility for community engagement; Page 5 of 16

6 Manage the inherent risks in operating a livestock exchange; Maintain Centre as a viable asset; Provide an appropriate return to Council on its investment; Continuous increase in throughput numbers. Provide a facility with the most up to date marketing methods to drive improved auction values Key Objectives 1. Infrastructure The key objective for the SRLE in the next five years is to provide and maintain infrastructure that will ensure the Centre maintains its position as the number one selling centre in the southern region. 2. Workplace Health & Safety and Risk Management i. SRLE was the first sale yard with integrated on-line WH&S induction process. ii. iii. iv. The success of the SRLE is dependent on compliance with WH&S and minimising risk associated with the operation of the centre. Without strict compliance, significant losses would result from the operation therefore putting the business at risk. Compliance can only be achieved with carefully planned, programmed, monitored and audited systems. These systems are divided into a number of components of the Operational Plan requiring regular review as well as auditing by independent sources. There is significant risk associated with the operation of the SRLE. Risk Management should not only focus on the possible physical risks to persons. Another risk that should also be considered is financial risk. Such infectious diseases which would reduce revenue e.g. an outbreak of hoof and mouth disease and a temporary shutdown of the livestock industry. Page 6 of 16

7 Site plans The facility is located on the Berrima Road, in Moss Vale, 140 km south of Sydney and covers an area of 20 hectares. The facility has a capacity of 2,000 head of cattle. Sales are held weekly with a store cattle sale once a month. Sufficient area exists for the expansion of the current capacity. Figure 1 Site Map Page 7 of 16

8 SRLE Catchment Area The catchment area is generally defined as a radius of 180 kms from Moss Vale to the NSW coast in the south and to a line between Lithgow in the north to Kiama in the east. Page 8 of 16

9 Throughput The following table estimates the total cattle numbers from the ABS statistical regions that form the majority of the SRLE catchment area. Table 1 SRLE Throughput 2010/11 (ABS Statistics - report ) New South Wales SRLE Regions Sydney South Eastern Illawarra Central West Estimate Estimate Estimate Estimate Estimate Livestock - Cattle - Total (no.) 5,709,752 1,170,021 44, , , ,237 Livestock - Dairy cattle - Total (no.) 325, ,959 10,139 38,210 42,088 16,522 Dairy cattle - Proportion dairy cattle to total (%) 6% 9% 23% 8% 41% 3% Overall change since 2008/09-3% 6% -8% 2% -11% 15% Numbers have remained steady over the 2 years with a decline in the Illawara region. Overall the catchment region has in the order of 1,170,000 cattle of which only part is accessible to SRLE. SRLE's opportunity is to attract more sales from the South East and Central West Regions which have higher stock numbers. Actual sales data from MLA's NLRS for saleyards in the catchment are: Table 1 Catchment Region 2007/ / / / /12 SRLE 57,379 58,584 57,609 38,912 47,263 Goulburn 28,002 33,503 34,994 30,726 29,778 Camden 26,060 31,404 32,171 25,584 23,201 Nowra 24,552 23,000 23,335 22,000 19,319 Braidwood 25,643 13,656 15,594 11,231 12,298 Total 161, , , , ,859 SRLE% Recasting the 2011/12 data in to ABS regions and applying a target number for this plan, to those regions identified as having the greatest opportunity suggest the objective to be 87,000 head in 2016/17 in the following mix: Table 2 ABS Regions Actual 2012 Target 2016/17 South Eastern 33% 15,716 37% 32,000 Sydney & Illawarra 62% 29,526 48% 42,000 Central West 2% % 13,000 Other 3% 1,429 47,623 87,000 Page 9 of 16

10 Target The Board s objective is to increase volumes by: Providing a best practice service at fair cost to all stakeholders Attracting at least 2 new sources of cattle over the next 5 years Attracting regular sales of horses and/or other livestock species Forecast cattle throughput targets for the period are: 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, ,000 72,000 77,000 82,000 87, / / / / /17 Cattle sold Marketing The marketing of the SRLE is acknowledges as a difficult area due to the unpredictable nature of the industry. Council provides a facility for Agents to operate in and Agents set the market numbers. Climatic factors that affect the entire State e.g. drought. Reduction in productive rural land in the area and changes in demographics. Capacity of local vendors to supply stock. To achieve the target throughput: Marketing will be specifically targeted to all stakeholders (vendors, agents and buyers) through an annual marketing plan An appropriate marketing allocation will be included in each year s budget. Specific marketing objectives: Increase outside selling to maximum advantage Increase throughput generally and by increasing cattle numbers sold by Outside/Overhead sales Page 10 of 16

11 Investigate and implement broadband technology as it becomes available including, where applicable computer selling and Auctions Plus Interface selling Increase business opportunities at the centre Develop and implement a plan for regular broadcast in regional media of SRLE weekly results in consultation with stakeholders Expand the number of agents selling at the facility Promote local businesses that support the Centre e.g. local butchers who buy at the centre Discuss with Local Chambers of Commerce and Tourism on strategies for enhancing the Centre Prepare regular news updates in local media and Council newsletter focusing on rural residents detailing functions of the Centre Target NLRS reporting in The Land and ABC Country Hour Promote the benefits of the Southern Regional Livestock Exchange Management To enable SRLE to meet these objectives it will be properly resourced from Council personnel supplemented by engaging external consultants as required and include such areas as marketing, technology and design. Key areas to be addressed include: Benchmarking of operational functions e.g. - Cleaning building and yards - Maintenance building and yards - EPA and other regulatory compliance - Ongoing operational review and improvement of facilities Ensuring relevant resources are engaged for ongoing managing and developing the business to ensure that the highest possible level of service while remaining cost effective. Key Performance Indicators (KPI s) will be set for SRLE personnel in order that the aims and objectives of the Strategic Plan are achieved. The next 5 years will see major changes in the way saleyards are operated. To ensure that the Southern Regional Livestock Exchange is viable a Capital Works Program will be devised that delivers infrastructure suitable to ensure the centre provides best practice facilities and with appropriate technologies to assist marketing and maximise sales values. Page 11 of 16

12 Capital Expenditure Facility Improvements The following matters are identified for upgrading: Upgrade of air compression systems Catwalks Online video systems Upgrading old yards Seating Capital expenditure will, as far as possible, be funded within the annual budget. Appropriate levels of Capital Expenditure are included in the Forecast Financial Projections. In the past five years, there has been significant upgrading of the facility including roof which was largely funded by a grant from the Federal Government. Financial The viability of the centre is dependent on throughput. SRLE is managed as a business unit of Council meeting all overhead cost of council applicable to the facility, loan repayments and a return to Council on its investment. Operating costs are continually reviewed to ensure that all operational matters are efficient and cost effective, including: Staffing Levels Maintenance Procedures Cleaning Procedures Maintenance costs Infrastructure renewal Fees and charges Key targets are to: Improve profitability of facility to increase the contribution to Council s Consolidated Revenue Maintain fees and charges at rates that are market competitive Fund current and future Capital Works Improvements Program from revenues generated by the facility Long-term asset management Page 12 of 16

13 Saleyard Fees Fees and Charges (ex GST) Comparison with Saleyards in the Catchment Area noting that Nowra and Camden are privately agent owned businesses and such are not comparable with council or corporate operations. Camden** Nowra** Braidwood SRLE Goulburn Forbes Carcoar Yard Fees $6.00 $2.50 $10.70 $7.68 $6.50 $10.10 $10.00 Weighing Nil $2.50 Included in yard fees Included in yard fees $3.00 $4.20 $3.00 Included in yard fees $1.82 $1.50 Included in yard fees Included in weighing Scanning Nil $1.59 % of Sales (based on $500 unit) Nil Nil Nil 0.25% 0.50% Nil 0.30% Cost per $500 unit $6.00 $6.59* $10.70 $10.75 $13.50 $14.30 $14.50 *Store sales attract an advertising contribution of $1.75hd ** Camden and Nowra Saleyards are owned by agents Table /13 Saleyard Fees 60,000 50,000 40,000 57,609 30,000 20,000 57,379 58,584 38,912 47,263 Cattle sold 10, Page 13 of 16

14 5 year Historical results June Throughput 57,319 58,584 57,609 38,912 47,623 $,000 $,000 $,000 $,000 $,000 Revenue Operating Expenses Operating Profit Less-Reimburse Overheads & Return to Council Net Profit/-Loss SRLE Investment at cost 1 July 4,100 4,146 4,285 4,627 8,849 Additions - General Roof Total Additions Investment 30 June 4,146 4,285 4,627 8,849 9,171 Table 4-5 Year Historical 5 year Forecast June Throughput 57,000 72,000 77,000 82,000 87,000 $,000 $,000 $,000 $,000 $,000 Revenue ,025 1,131 Operating Expenses (5% increase per annum) Overheads Return to Council Transfer To/(From) Reserve (23) SRLE Investment at cost July 1 9,171 9,171 9,211 9,261 9,321 Additions at cost Investment June 30 9,171 9,211 9,261 9,321 9,391 Table 5-5 Year Forecast These figures are based on a projected increase in throughput and CPI forecasts Page 14 of 16

15 Other Opportunities SRLE will develop strategies to diversify, strengthen and increase the revenue base through: Education Agri-Tourism Develop programmes for use of the facility in tourism or education i.e.: Auctioneer training, seminars/symposiums Horse and other species sale. Subject to completive forces to examine and implement regular sales of horses, sheep and other species as appropriate Use of Other Council Land Access to land/property owned by Council for production of forage and the agistment/holding of third party livestock. Continue of the use of Council land to produce hay for resale - i.e. Bong Bong Common. One new opportunity is providing services for the re-use farm for Robertson waste water Export Depot Subject to AQIS accreditation and compliance with export/import protocols (MICOR) to encourage the use of Council facilities as a depot for live export through Sydney International Airport. Each opportunity will be the subject of a Business case review and approval of the Board and Council Why sell at the Southern Regional Livestock Exchange The Southern Regional Livestock Exchange is the major cattle selling facility in the Southern Region; Facility has been recently (2011) totally covered at a cost of $4.9m providing improved facilities for both the stakeholders and livestock management Processes 40% more cattle per week than Camden, Goulburn or Nowra; Strong buyer support, export and local; Website with up-to-date information at Consistent utilization by established Vendors Live weight selling; Soft flooring; Undercover area of 10,000 sq. Meters allows Outside/Overhead selling reducing sale time and promotes the facility to buyers of larger mobs of cattle and appreciation of sales value Modern, indoor selling ring with live weight and pricing display; WH&S compliance yards; Page 15 of 16

16 Central to transport routes to Sydney, Southern Tablelands and Coastal areas; Choice of Selling Agents; National 24 hour trucks wash facility. Page 16 of 16