3. RMPP is a unique partnership between
farmers, processors, banks and government
4. RMPP Associated Partners
- Associated Partners are supporters and will be linked to the
RMPP programme
(Lincoln & Massey Universities)
5. The programme arose from
the findings of the Red Meat
Sector Strategy (2011)
Focused behind the farm-
gate on those areas within
farmers control
Financial benefits estimated
at $284 million p.a. by 2025
in pre-tax on-farm profit
That represents an additional
$117 per hectare
6. A focus on the core fundamentals of farming
• Supporting best practice on-farm
• Integrating:
• Planning/ budgeting
• Information systems to enable effective benchmarking
• Extension programs that will deliver proven practice outcomes
More informed
management
decisions on-farm
8. Productivity gap
- Significant gap between high performing farms and lower quintile
(excludes lowest 20%)
- Focus needs to be on productivity by hectare
10. Low knowledge and technology uptake in this sector
Lack of system integration
FMS, CMS, Overseer – can’t exchange data
Lack of measurement and benchmarking
No fully integrated benchmarking tool that incorporates all key
information from the sector
Only five percent using an effective budget
65% sheep & beef farmers don’t budget
80% farmers believe they are in the top 20%
11. Better understand farmer needs so we can develop better
extension and learning programmes
Improving profitability and productivity of all farmers who
participate in the RMPP programme
Increase focus on profitability per hectare
Develop, trial and deliver effective farm extension
Farm benchmarking and planning tools to support farmer
decision making
Accurate and consistent information from multiple sources
Identify the efficient pathways for stock from farm to
processor
Consistency in farm quality assurance across NZ
Common NZ story in the red meat sector
12. Focusing on the fundamentals - What’s in a farmer’s direct control
13. Source: Deloitte & B+LNZ
Benefits estimated to be delivered from this program – on farm profit by 2025
20. The Red Meat Profit Partnership
What does it mean for B+LNZ
operations?
21. • RMPP activity will be delivered by partners and providers.
• The intention is to avoid confusion at the farm. Delivery will
be through people and organisations that farmers already
know and understand.
• Delivery will not be done under an RMPP brand.
• Delivery will reference RMPP but be done under the
providers brand e.g. if B+LNZ are delivering RMPP activity
we will deliver under the B+LNZ banner.
Who delivers RMPP?
22. Does RMPP duplicate
existing B+LNZ activity?
• No, RMPP activity is additional to existing business-as-usual
(BAU) activity within B+LNZ.
• RMPP activity conducted by B+LNZ is intended to build on
and/or create new opportunities that can become
business-as-usual for B+LNZ beyond the life of the
programme.
• The alignment of B+LNZ activity with successful RMPP
initiatives provides the opportunity to transform B+LNZ
over the period of the RMPP programme and beyond.
23. How do we resource
this extra work?
• Any work that B+LNZ conducts for RMPP will be under
a service agreement that covers the costs of doing
that work.
• Where delivery of RMPP requires current B+LNZ staff
we will have the resources available (funded through
the service contracts) to provide back-up support.
Editor's Notes
1 cwe = carcase weight equivalent
2 Excluding lambs from hoggets
The production gains have been modelled based upon the B+LNZ Economic Service Farm Survey. The sector and performance gains per hectare are based upon improvements in the All Farm Classes Average. It is important to recognise this an average so individual farms will perform above or below these performance targets
Average weight for beef sold off farm has fluctuated depending upon seasons, no significant step change in carcase weight. The projections assume the ability to lift the store and finished beef average weight (CWE) sold by farm currently 241 kgs cwe) by 10kgs per head.
Average weight for lamb sold off farm; The projections assume the ability to lift the store and finished lamb average weight (CWE) sold by farm currently 16.6 kgs cwe) by 2kgs per head. Will mean more lambs being finished in store farming operations.
Hogget lambing being the number of lambs tailed from ewe hoggets only as a percentage of the number of lambs tailed from ewes, increases from 4% to 6%
Lambs tailed (being the number of lambs tailed from ewes only (i.e. excluding ewe hoggets) per ewe mated) increase from 125% to 132%.
The definition of financial gain is the percentage reduction in interest rates charged to sheep and beef farmers due to increased transparency of financials by banks and increased understanding of financials by farmers. The assumed baseline is zero because it is a marginal interest rate change that is being measured. We will utilised ANZ / Rabo data to measure this.
The definition of co-product is a percentage increase in the number of A grade quality skins / pelts, ie, 50% increase. Note that this will not be applicable until 2019. The assumed baseline is zero because it is a percentage of skins / pelts that are A grade that is being measured. We will utilise grading data from processors.
The definition of sector savings is the percentage reduction in transaction costs based on initiatives to optimise pathway from farm to processor. The assumed baseline is zero because it is a percentage reduction in transaction costs that is being measured. We will utilise data pulled together from 1.2 and 2.4 for this.