CORPORATE PLAN FOR MEAT PROMOTION WALES (HCC)

Transcription

1 CORPORATE PLAN FOR MEAT PROMOTION WALES (HCC)

2 Contents 1 - Introduction Page The Outlook for the Welsh Red Meat Industry Page Challenges and Opportunities Facing the Welsh Red Meat Industry Page Strategic Framework Page HCC Objectives, Actions and Outcomes Page Monitoring and Evaluation Page Finance Page 22 1

3 1 - Introduction Meat Promotion Wales (HCC) is the body responsible for the development, promotion and marketing of Welsh red meat. This Corporate Plan covers the period The staff of HCC under the direction of its Board of Directors and Chief Executive have brought this plan together to fit within the context of the Welsh Red Meat Industry Strategic Action Plan (2020 Vision) which was launched by the Deputy Minister for Farming and Food, Rebecca Evans AM in July At time of writing, the UK Government has triggered Article 50 of the Lisbon Treaty to formally notify the European Council of the UK s intention to withdrawal from the EU (Brexit). The negotiations regarding the terms for the withdrawal will take place during the next two years. Unless this process is extended, the UK is scheduled to leave on Friday, 29 March The impact of this decision and the UK s subsequent withdrawal from the EU on the Welsh red meat industry is uncertain but, given the sector s reliance on international trade (see below) is likely to be profound. This Corporate Plan therefore reflects this period of change for the red meat sector in Wales. Welsh Red Meat Levy 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. 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 collects the levy from sheep, beef and pigs at the point of slaughter in Wales and undertakes the statutory functions in relation to the Welsh red meat industry. 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 HCC is wholly owned by Welsh Ministers and appointments to the HCC Board are made by the Welsh Ministers in accordance with the provisions of the Government of Wales Act

4 The HCC Board Chairperson, Dai Davies and a number of Board members came to the end of their terms of office in March A new Board was appointed by Welsh Government and took office from April The HCC Board comprises 11 non-executive directors (including the Chairperson), including industry and independent representatives. Industry members are representative of the red meat sector and its geographical area, whilst the independent members are independent to the industry. Board members have a range of skills including primary production, red meat processing, food and drink manufacturing, export, sales and marketing, finance and audit, legal and governance and academia. 3

5 2 The Outlook for the Welsh Red Meat Industry Red Meat Consumption Lamb, beef and pork consumption levels across the UK remain relatively stable although the overall long term trend is one of decline. Changing demographics of smaller households and the need for quick and easy meal solutions continue to drive demand for [larger] carcases that can be processed into cuts more cost-effectively. Alongside this, the wider social and political factors continue to exert influence on purchasing patterns and retail policies. The public perceptions of the health of red meat within their diet and discussion of the environmental impact of livestock production present particular challenges with respect to red meat consumption. Whilst Brexit may stimulate consumer demand for home-produced goods this must be considered in relation to these issues as well as to the relatively high costs of production and a highly seasonal supply. These factors and others must be part of HCC s long-term market development strategies. The short-term priority continues to be to maintain and enhance the recognition and positive perception of Welsh red meat brands among target consumers in existing and emerging markets), in order to maximise the value of sales to levy-payers. Trading Patterns With only five percent of the red meat produced in Wales consumed in the home (Wales) market, Wales continues to be heavily dependent on domestic markets - particularly England - and global export markets including the EU(see table below). These overseas markets are also crucial to help ease the continuing strain on carcase balance by seeking high value markets for the different cuts. Existing markets Developing markets Market access being sought Welsh Lamb Welsh Beef Welsh Lamb Welsh Beef France France Netherlands Denmark USA Belgium Belgium Austria Switzerland China Germany Germany Switzerland Spain Saudi Arabia Italy Italy Norway Hong Kong Spain Denmark Sweden United Arab Emirates Hong Kong Canada 4

6 The volumes of sheep meat and beef that were exported from Wales to both the European market and wider afield continued to decline in This reflected the continued impact of the economic recession in Europe and the strength of the pound at that time. However, the EU referendum result in June 2016 created significant levels of uncertainty around future trading relations and had an immediate impact on the value of the pound. The fall in the value of the pound in the summer of 2016 provided a more favourable export climate for UK goods that might, in time, be expected to be reflected in an increase in red meat exports from Wales. However, the decreasing demand for light lambs from Wales from the Mediterranean markets that are able to take advantage of lambs from Romania and Bulgaria combined with the further decline in skin values as a result of the legislative changes in China (the main outlet for skins), flooded an already saturated market and has meant that the full impact of the currency exchange rates on red meat exports may not be fully realised. It is anticipated that existing buyers of sheepmeat on the continent will now seek to reduce their reliance on UK supply in order to minimise the potential impact of a trade agreement not being in place when the UK leaves the EU. Whilst it is not expected that existing trade arrangements will change in the interim, uncertainty will inevitably disrupt the market for Welsh lamb in particular and could present a significant risk to trade going forward. The terms of trading relationships with the EU for red meat post 2019 will not be known for some considerable time but future EU trade could be disrupted significantly if tariffs were to be imposed. Gaining access to new international markets will therefore become increasingly important but this process is lengthy and it will take many years to establish the brands in target markets in order to stimulate demand and influence retail premium. The challenge for HCC is therefore whether to prioritise the maintenance of existing markets or the development of new ones. The uncertainty of the future trading arrangements post- Brexit means that both of these approaches must be actively pursued, insofar as funding allows. Supply chain The multiple retailers continue to dominate the sales of lamb and beef from Wales and therefore exert considerable influence on the specification of carcases for processing. Evolving patterns within multiple retail in the UK, including the growth in market share of discount chains, present both problems and opportunities for PGI Welsh Lamb and PGI Welsh Beef. Around fifty percent of the prime sheep and cattle continue to be marketed through the Welsh livestock auction market sector. Very few pigs are marketed through Welsh livestock auction markets. 5

7 In contrast, while there are a small number of large-scale commercial pig producers in Wales that are slaughtered in England to supply pork for the commodity market, pork produced in Wales is primarily marketed as differentiated niche products sold direct, within Wales. HCC s challenge is to continue to make progress in terms of the number of lamb and beef carcases reaching the higher specifications, and to secure buy-in among producers to the fundamental rationale behind these requirements to make the supply chain more efficient. Red Meat Processing in Wales There are currently 23 operational red meat abattoirs in Wales. The throughput is dominated by a small number of large abattoirs and a large number of smaller, local processors. Four abattoirs (St Merryn, Dunbia, Randall Parker Foods and Fairfield Meat Co.) account for approximately 90 percent of the total throughput of sheep and four (St Merryn, Randall Parker Foods, Cig Calon Cymru and Conwy Valley Meats) account for approximately 90 percent of the total throughput of cattle. Six of the 13 pig slaughtering abattoirs in Wales account for approximately 87 percent of total pig throughput. During 2016, HCC completed a comprehensive review of the Welsh red meat slaughtering sector on behalf of Welsh Government. The report concluded that the combined capacity of the abattoirs slaughtering cattle, sheep and pigs in Wales is approximately 17 percent, percent and 32 percent respectively above current utilisation. Nevertheless, opportunities to optimise throughout are limited by a number of factors that have a substantial impact on the future resilience, performance and profitability of the sector including: Livestock supply - declining livestock numbers; Regulatory compliance - increasing amount of regulation; Physical infrastructure - limited physical infrastructure (specifically chillers); By-product disposal - disposal generally outweighs margins; Value of hides, skins and offal - decreasing value; Changing demands - responding to demands; Skilled labour - shortage of skilled slaughter and butchery workers; Succession planning - limited replacement planning; and Market structure - intensified search for customers. The potential risks presented by a hard Brexit are likely to have a further significant impact on these factors and not least of which are livestock supply and a reliance on migrant workers from within the EU. 6

8 Livestock Production in Wales Welsh red meat producers continue to represent 52 percent of active Welsh holdings and play a significant role in the rural economy of Wales. Breeding sheep numbers have continued to increase for the fifth year in succession and reached 4.6 million ewes in June The continuation of this trend will depend heavily on impact of market prices, concerns about future markets for lamb and the potential impact of the current market situation on suckler beef production in Wales. Source: Welsh Government. June Agricultural and Horticultural Census In June 2016 the beef breeding herd stood at 208,600 head (unchanged on the year previous) whilst the dairy breeding herd stood at 298,100 head (a slowing in numbers since the rebound of 2013). Suckler beef production is particularly sensitive to the current pre-brexit uncertainty and it is possible that the transient arrest in the decline of suckler beef numbers that was seen in 2016 may not be sustained. Source: Welsh Government. June Agricultural and Horticultural Census The Welsh pig breeding herd has continued to fall to 3,800 head in June 2016 and represents less than one percent of the total UK breeding herd. 7 Source: Welsh Government June Agriculture and Horticulture Census

9 The Strategic Action Plan for the Red Meat Sector set a target of sustaining breeding pig numbers. A significant increase in the Welsh pig herd is however expected to occur by 2020 as a result of the Menter Moch Cymru initiative funded through the Welsh Government Rural Communities - Rural Development Programme The potential impact of this programme on the marketing of pork produced in Wales and on the throughput of pigs through Welsh abattoirs has yet to be determined. Whilst large-scale commercial pig production has been under pressure across the UK, the small size of the majority of Welsh pig holdings and the direct marketing of their product within Wales has provided an element of resilience which has helped many of them to endure the low prices and high costs experienced in the pork sector in recent years. Sheep and beef producers in Wales have, however, continued to face a number of significant challenges together with a changing support payment structure and many farms are still struggling with financial viability. A core challenge remains as to how to secure product and supply chain innovation, market intelligence and effective marketing in an industry where primary production is spread between a large number of small businesses, many of which are under financial pressure and further uncertainty due to Brexit, and where the processing industry is dominated by a small number of companies, many of which have their headquarters outside of Wales. Continued co-operation and collaboration across the red meat sector is essential to help meet this challenge. 8

10 Export 3 - Challenges and Opportunities Facing the Welsh Red Meat Industry The red meat industry in Wales faces a number of significant challenges, several of which are related to the uncertainty surrounding the impact of the UK decision to leave the EU. There are also a number of opportunities available and these must be seized if the Welsh red meat sector is to overcome these challenges in a timely manner to create a resilient, sustainable and profitable industry. The key challenges and opportunities that currently face the Welsh red meat industry are outlined in the following table. Industry Challenges Reliance on EU market currently and post-brexit and the impact of Brexit on future free trade within the EU for red meat from Wales Industry Opportunities Strong PGI branding of Welsh lamb and Welsh Beef offers both provenance and traceability and is recognised globally Increasing reliance on existing and developing export markets and the need to establish trade agreements for red meat from Wales outside of the EU. Reliance on export markets but stakeholder perception of need to enhance domestic consumption Competition from Eastern European countries supplying into existing markets for PGI Welsh Lamb and particularly those for light lambs Political pressure in favour of domestic sourcing in some key overseas markets Sustaining PGI status for Welsh Lamb and Welsh Beef for future EU (and global) trade and establishment of equivalent UK PFN status to underpin provenance in other non-eu markets Seasonality of product (lamb) Need to achieve carcase balance to maximize returns Declining value of 5 th quarter Costs prohibit innovation and progress new product development / shelf life / skin packs etc. Identify and exploit higher value markets for products (e.g. shoulders/fronts versus mince) Increase the supply of clean livestock to help extend shelf-life for markets further afield Improved genetics number of animals meeting market specifications suggests that genetic improvements are coming through. These offer the ability to increase carcase weight and conformation within existing systems and environments Continued collaboration with Food Centre Wales and other organisations in the area of new product development could help to maximize carcase utilisation and add value. 9

11 Public perceptions Production Consumer demand Industry Challenges Changing consumption and consumer demand for quick and easy meal solutions Price competition from cheaper sources of protein High cost of production and a general industry reticence to change Uncertainty of future financial support to industry Obtaining useful performance data is difficult measuring livestock performance needs regular animal handling / facilities Reluctance to share [financial] information / engage in benchmarking Disease - cost of vaccination/preventative measures is seen to be a barrier Antimicrobial / anthelmintic resistance and TB continue to present threat The decline in suckler beef numbers means that beef production is particularly vulnerable to changes in policy The failure to address inconsistency in eating quality of beef and the quality of supply continues to impact on consumer purchasing Health concerns continue to dominate consumer perceptions about red meat Perception of the negative impact of livestock farming on climate change Negative public perception of industry subsidies Industry Opportunities Development of new, innovative and healthy Welsh red meat products New product development to provide versatile solutions and assist in achieving carcase balance New technologies can offer practical improvements (e.g. production, processing, packaging, shelf life etc.) and potential ways to quantify difficult to measure traits such as meat yield and eating quality Improved ability to select animals for slaughter can reduce the number of over fat animals and increase returns New, simple approaches to benchmarking could help define Cost of Production and encourage the use of Key Performance Indicators Working with professionals in allied sectors (e.g. accountants) could help to extend messaging and reinforce opportunities for change Commitment of Welsh Government to facilitate sustainable growth within the Welsh Agricultural sector Opportunity to build on the PGI brand to include eating quality and consistency Continued collaboration with Farming Connect and other organisations working across the red meat sector will help to maximize impact Educate consumers regarding the importance and health benefits of red meat as part of a balanced diet Development of climate change indicators for sheep and beef production could provide the ability to benchmark and promote the green credentials of Welsh red meat production Technical efficiency within the industry to help mitigate / control greenhouse gas emissions 10

12 4 - Strategic Framework HCC is the industry-led organisation responsible for the development, promotion and marketing of Welsh red meat. The strategic framework for delivery of HCC is directed by the Welsh Red Meat Industry Strategic Action Plan (2020 Vision). The Twenty Twenty Vision is an industry action plan prepared by HCC in close consultation with the Welsh red meat supply-chain and the Welsh Government. It was launched in July It identifies a number of strategic, high level actions that will help to address the key challenges that the industry will face in the coming years and actions that will enable the Welsh red meat sector to take full advantage of the opportunities which present themselves. The Strategic Action Plan seeks to deliver a profitable, efficient, sustainable and innovative industry which benefits the people of Wales; a red meat industry which is resilient to political and environmental change and capable of responding competitively to ever changing market trends. It seeks to be ambitious, yet realistic, and is outcome driven. As such, specific financial targets for 2020 were included for the first time, in order to provide a clear and focussed measure of success. This Corporate Plan summarises the contribution that HCC plans to deliver to help meet these targets. The focus for delivery is through two operational departments (Market Development and Industry Development) and these are supported by the Communications, Corporate Strategy and Policy, and Corporate Services departments. Market Development - aims to increase returns to the Welsh red meat industry by maximising the sales value of Welsh red meat. Industry Development - works within the red meat industry in Wales to improve quality and increase cost effectiveness in a sustainable way. Communications - ensures that information regarding developments relating to Welsh red meat as well as the full range of HCC s activities are made known to stakeholders and consumers. Corporate Strategy and Policy - works to develop and implement strategies and inform decisions regarding the Welsh red meat industry. Corporate Services - supports the operational delivery of the business and controls the resources required. In order to meet the needs of the industry and to achieve the strategic objectives identified by the Strategic Action Plan, the industry and government will need to work together. HCC will continue to interact with DEFRA, the Welsh Government, 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. 11

13 Outcomes Objectives Priorities Vision Growth in the Welsh red meat share of market value Increased trade and consumer demand for Welsh red meat products in both the domestic and export markets Increased awareness and improved consumer perception of Welsh red meat Increased consumption of Welsh red meat Enhanced industry knowledge and understanding of market needs and trends Improved business management skills and industry resilience Improved animal health, welfare and disease prevention Improved supply, transparency and consistency of product and enhanced supply chain linkages Increased uptake of techniques which support climate change targets Enhanced productivity and efficiency 5 - HCC Objectives, Actions and Outcomes Twenty Twenty Vision identifies the priorities, objectives and outcomes for the Welsh red meat industry by 2020, as outlined in the following diagram. A profitable, efficient, sustainable and innovative industry which benefits the people of Wales; a red meat industry which is resilient to political and environmental change and capable of responding competitively to ever changing market trends Increase demand for Welsh red meat products (thereby increasing sales and returns) Improve production efficiency (thereby increasing quality supply) whilst maintaining the environment and landscape of Wales Increase sales revenue from Welsh red meat Increase UK retail sales value of Welsh red meat Increase UK foodservice sales value of Welsh red meat Increase export sales value of Welsh red meat Increase the contribution of the Welsh red meat sector to Welsh Agricultural Output Increase the number of carcases meeting standard market requirements Increase the carcase weight of light lambs Increase the national average sheep flock performance Increase the national average cattle herd performance 12

14 Through a combination of interventions and close working between all partners within the Welsh red meat industry, by 2020 the Welsh red meat industry aims to be a profitable, efficient, sustainable and innovative industry which benefits the people of Wales. This vision remains unchanged but it should be noted that the targets and actions set out in 2020 Vision will be reviewed annually and revised if necessary to meet the changing economic and political landscape as Britain prepares to exit from the EU. In order to achieve this vision, HCC must continue to build upon the solid foundations that have been established to date and create a culture of innovation and market focus that will enable the industry to meet the current challenges and develop in an increasingly competitive global marketplace. The plan recognises HCC s statutory commitment to activity that is focused upon: Marketing, promotion and certification of Welsh red meat products Research and development Market and industry intelligence Industry training and education Encouraging entrants to the red meat industry, and Promoting safer and better working conditions This Corporate Plan for has therefore been set out in line with the Twenty Twenty Vision and highlights the contribution that HCC can make during this period. This plan is focused on cost-effective delivery and recognises the importance of measuring the impact of investments. Collaboration, cooperation and communication across the industry is integral to achieving success. 13

15 The following tables outline the activities that will be undertaken for 2017/2018 in relation to the Strategic Actions identified within 2020 Vision - The Strategic Action Plan for the Welsh Red Meat Industry. Marketing and Promotion Strategic Action Further develop existing home and export markets for Welsh red meat Open up new export markets Complete EU promotional programme in Germany, Italy (beef and lamb), Sweden and Denmark (lamb). Provide agent and key account support to existing export markets (France, Germany, Benelux etc. to maintain confidence and sales pre-brexit. Sustain promotion of Welsh red meat through retail marketing, advertising and PR, provision of point of sale materials, maintenance and development of consumer and trade websites. Deliver key account support with strategic foodservice wholesalers in priority export markets. Profile Welsh Red Meat brands in priority markets at relevant trade shows. Deliver trade marketing programmes in priority export markets to facilitate further opportunities for branded Welsh red meat listings. Work to ensure Welsh Red Meat benefits are marketed effectively to public procurement bodies. Continue to work with health and education professionals to educate / inform consumers about the benefits of Welsh Red Meat as part of a balanced healthy diet Develop proposals for pre-brexit activities that will: develop and deliver support to EU and non-eu developing markets enable progress towards accessing new markets consolidate domestic activity through an enhanced consumer facing red meat roadshow in England and Wales. Continue to develop and exploit relationships that will allow better access to high value markets which currently have no access or restricted access. Maintain active participation in UKECP meetings and UK and Welsh Government forums. Continue to provide direction to Export Certification Ltd (ECL) with respect to priority /target markets for Welsh Lamb and Welsh Beef. Continue to collaborate with GB levy bodies to maximise benefits from non-competitive work. 14

16 Marketing and Promotion (continued) Strategic Action Develop trade marketing programmes to protect red meat interests and maintain shelf space allocated to Welsh red meat products Develop mechanisms to increase the volume of branded Welsh red meat available in order to achieve retail premium in retail and foodservice Carry out activity with retail, wholesale and foodservice customers to sustain levels of Welsh red meat listings. Delivery of processor account support programmes. Delivery of trade development programme for Welsh red meat in all sectors. Certification and marketing of Welsh red meat products Strategic Action Review and develop the red meat brands to create and sustain a strong and competitive brand position in high value [global] markets Sustain, develop and promote the PGI scheme for Welsh Lamb and Welsh Beef. This includes continued working towards UKAS:ISO/IEC 17065:2012 and work to enhance the communication of PGI requirements to potential processors and to Trading Standards. Develop trade marketing programmes to protect red meat interests and maintain shelf space allocated to Welsh red meat products Develop mechanisms to increase the volume of branded Welsh red meat available in order to achieve retail premium in retail and foodservice Deliver a recruitment and retention programme for Butchers Club members to increase the volume of Welsh red meat sold through independent butchers. Deliver a retention programme for Welsh Lamb Club members to sustain the volume of Welsh red meat sold identified in the HoReCa sector. 15

17 Research and development Strategic Action Undertake market research to identify and profile high value markets in order to prioritise efforts and tailor activities Develop new red meat products in line with current and emerging global market demands Support relevant programmes of R&D activities to enhance production and processing efficiencies and to provide solutions to adapting to climate change Undertake trade and marketing research and communications to identify and understand trade and consumer buying patterns and identify potential new market opportunities. Continue to work with the Food Innovation Centres and other organisations to identify opportunities and develop collaborative proposals to support new product development for lamb to enhance carcase balance, provide new marketing opportunities and add value to low cost cuts. Maintain a research and development portfolio that is relevant to the needs of Wales and maximises return on levy investment. Disseminate and communicate R&D activity to levy payers. Market and Industry Intelligence Strategic Action Collate and disseminate market intelligence at Wales, UK and global level to provide the industry with the knowledge to better inform decision making Collate and analyse Welsh, UK, EU and global market intelligence data. Communicate Welsh, UK, EU and global market intelligence data and global policies to levy payers, stakeholders and policy makers. This will include opportunities to incorporate new digital media approaches to segment and directly target information. Communicate consumer and retail trends to industry stakeholders. Establish mechanisms to facilitate and encourage widespread uptake of genetic improvement to improve productivity and efficiency and to ensure that red meat products can meet and sustain market demands Provide information and targeted activities to help producers to improve technical efficiency of red meat production through the utilisation of genetic improvement, improved animal health and welfare and better utilisation of grass and forage. Maintain proactive relationships with Farming Connect contractors to ensure timely and effective delivery to the red meat sector. Utilise industry data to quantify and communicate impact of reducing barren rates / calving intervals, improved growth, carcase conformation and reduced finishing times on business performance and sustainability. 16

18 Market and Industry Intelligence (continued) Strategic Action Inform producers about the impact of production efficiency on climate change targets Further develop the Welsh red meat roadmap principles across the red meat supply chain Establish mechanisms to: Develop new business-focused approaches to red meat production Enhance understanding of the economic benefits of optimizing animal health / improving efficiency through effective husbandry Facilitate and encourage uptake of genetic improvement Maximize outputs from grass-based systems / reduce reliance on bought in feed Consider new mechanisms to improve carcase grading systems Communicate impact of improved production and processing efficiency on greenhouse gas emissions and climate change mitigation in line with Welsh Red Meat Roadmap. This includes continued participation in the Climate Change Industry Group and continued proactive direction of key messages to the industry via Farming Connect Utilise industry information to develop strategic collaborative interventions in the areas of animal health and genetics that may be suitable for delivery through the RDP or other funding mechanisms i.e. Hill ram scheme, drench resistance programmes etc. Work with Farming Connect and OCVO to provide strategic direction to Welsh Government programmes and initiatives to ensure that focussed interventions are developed and delivered to help meet the Strategic Action Plan targets for the red meat sector. Continue to promote and encourage the development of new approaches to carcase evaluation and the rewarding of producers based on quality and consistency. Training and education Strategic Action Inform/ educate producers, livestock markets and processors about maximising carcase utilisation and producing a product that meets the specific needs of their market outlet Deliver Selection for Slaughter training (lamb and limited beef) and monitor impact to maximise producer engagement in measures to understand and meet market requirements, enhance shelf-life, and improve animal health. Work with Farming Connect to communicate key messages and to maximise recruitment of farmers onto courses. 17

19 Training and education (continued) Strategic Action Deliver knowledge transfer to promote innovation Inform / educate the industry about cost-saving and conservation of energy and water efficiency, ways to reduce waste and ways to improve knowledge, openness and transparency Scholarship programme award new scholarships in two new technical areas and use 20 th Anniversary year to communicate benefits and progress made by HCC scholars during programme lifetime. Develop and deliver technical information to improve processor knowledge and understanding of markets and opportunities for cost-reduction through increased carcase utilisation and waste reduction. Further develop the Welsh red meat roadmap principles across the red meat supply chain Encouraging entrants to the red meat industry Strategic Action Establish mechanisms to encourage new personnel to work within the industry (including young entrants) Undertake sector-based skills development and training to develop a professional and business focused workforce Continue engagement with YFC and Welsh Colleges / Universities with an increased focus on promoting the use of new technologies and tools to help meet market requirements, reduce costs and sustain a profitable red meat enterprise. Promote market requirements to forward-looking future farmers through engagement with FC Agri-Academy, Future Farmers of Wales etc. Promoting safer and better working conditions Strategic Action Provide and disseminate a range of business improvement information across the supply chain Attend relevant health and safety in agriculture meetings and ensure that health and safety messages are incorporated into relevant communications. 18

20 Collaboration, cooperation and communication activities in conjunction with all of the above Strategic Action ALL OF THE ABOVE Inform decision-makers so that they are aware of the impact of current and future public policies on the red meat industry. Continue to support Welsh Government in effecting the repatriation of red meat levy due to Wales. Work with QMS to ensure that ring-fenced levy from AHDB is utilised to achieve maximum benefit for the red meat sectors in the respective countries. ALL OF THE ABOVE ALL OF THE ABOVE ALL OF THE ABOVE ALL OF THE ABOVE Continuing to develop relationships that will enable new collaborative funding opportunities to be identified and exploited and for increased cross sector working. Maintain and enhance HCC s status as the main go-to organisation providing authoritative information on consumer and market trends in red meat. Inform the Welsh public at large about the positive contribution of the red meat industry to Wales s society and economy, and of HCC s role in promoting and developing the industry. Inform stakeholders of the work of HCC on their behalf. Corporate performance Corporate Action Fulfill statutory and corporate obligations in a timely and costeffective manner Ongoing programme of monitoring and review of financial and corporate responsibilities. Enhance communications between HCC and Welsh Government divisions. Continue programme of staff development, project evaluation and performance management to provide an efficient and costeffective service for levy payers. 19

21 Measure of Success Impact of Activities The success of this plan can be evaluated against the measurable targets of the Strategic Action Plan (which sets targets for 2020). Strategic Objective 1. Increase sales revenue from Welsh red meat 2. Increase the contribution of the Welsh red meat sector to Welsh Agricultural Output Measure of Success Increased UK retail sales value of Welsh red meat Increased UK foodservice sales value of Welsh red meat Increased export sales value of Welsh red meat Increased number of carcases meeting standard market requirements Increased carcase weights of light lambs Increased national average sheep flock performance Increased national average cattle herd performance Baseline Approximately 353 million (2014) Approximately 36 million (2014) Approximately 223 million (2013) Lamb: 58.5 percent (2013) Beef: 53.1 percent (2013) 15.8 percent of lambs within the superlight and light lamb weight categories (2013) Average number of lambs reared per ewe: (2012/2013) Average weight of lambs produced per ewe: 2 51kg (2012/2013) Average calving interval: 426 days (2013) Average weight of weaned beef produced per cow: 3 265kg (2012/2013) Maintained number of pigs in Wales 4,400 breeding pigs (2013) 20,500 fattening pigs (2013) 1 Per ewe: Per ewe put to ram. 2 Per ewe: Per ewe lambing. 3 Per cow: Per cow put to bull. 20

22 6 - Monitoring and Evaluation As part of the fulfilment of its objectives, HCC has an established monitoring framework which: Allows HCC to measure progress in meeting its objectives; Provides valuable management information to the management team and Board of HCC; Allows HCC to communicate its performance to external stakeholders on an ongoing basis; and Provides a basis for evaluation at an appropriate time. The monitoring framework extracts the actions and measurements from the Operational Plan and monitors the performance against these targets throughout the year. It is also a responsibility of the HCC Board of Directors to monitor and evaluate the delivery of activities by HCC (through the HCC Operational Plan) and to ensure targets are met. 21

23 7 - Finance 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. The Chief Executive of HCC fulfils 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 Accounting Officer 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-18 Mar-19 Mar Income Levy 3,586 3,550 3,550 RDP WG Export EU Market Promotion Other Income Total Income 4,196 3,580 3,580 Expenditure UK: Advertising : Promotion : PR Export: Advertising : Promotion : PR : Grant Technical Market Intelligence Grants Establishment Total Expenditure 4,196 3,580 3,580 Surplus