BPEX Business Plan 2011/12 - Agriculture and Horticulture ... · PDF file2 BPEX Draft Business...
Transcript of BPEX Business Plan 2011/12 - Agriculture and Horticulture ... · PDF file2 BPEX Draft Business...
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BPEX BUSINESS PLAN 2013 – 2016
BPEX is a Division of the Agriculture and Horticulture Development Board.
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BPEX Draft Business Plan 2013-14 and beyond Introduction The BPEX Business Plan outlines the activities proposed for 2013/14 and beyond that directly address the strategic challenges that the industry faces. It contains details of the activities, outcomes and targets to be achieved and the pig producer and processor levies used. This Draft plan is being circulated for consultation to interested parties in the industry. Market Background
The pig industry is currently facing acute financial pressure due to the rapid rise in feed costs and the lag in the rise of finished pig prices.
Our relatively poor productivity in certain areas of production compared to our European competitors puts us at a disadvantage.
Typical British production systems developed to meet market demands continue to contribute to higher cost of production.
The British market continues to operate with a price premium relative to our competitors however this has declined in the last year.
Industry promotion is based very largely on the Red Tractor. One major retailer has removed the logo from packs (although it is still supporting the assurance standards). Others have indicated their continuing support at present.
The appreciation of Sterling against the Euro has put pressure on British pig prices and has probably had an impact on about 10p/kg dw.
Pig producers are currently assessing the future impact on their businesses for the coming year. Future feed and bedding costs are available and decisions are being made on the prospects for pig prices. The likely impact is that many producers will either leave the business of reduce production. This will have an impact on BPEX levy resources in 2013/14.
The impact of high feed costs, and inside the EU sow welfare legislation, is likely to impact on other pig meat producing countries resulting in higher pig prices in 2013 and beyond. This could have a positive impact on pig production in 2014 and beyond.
Strategic Direction The strategic pressure on the industry, although now more acute, remains as it has been for a number of years. Our lower level of productivity contributes to higher costs of production which are offset, but not entirely, by a price premium for the pigs we sell. Although productivity has been improving, we have not closed the gap on our competitors. Our investment in loose housing of sows in 1990’s puts us at an advantage compared to many other countries which have had to invest more recently to comply with new EU legislation. The strengthening of Sterling threatens to erode our price premium. The BPEX plan to address these pressures is to use KT and R&D to close the productivity gap. Marketing on the home market will continue, concentrating particularly on breeding herd performance featuring the Red Tractor. This plan presents two options to promote Red Tractor pork, either as an “ingredient brand”, which requires greater resource, or as an assurance logo. In addition, gaining and exploiting access to lucrative export markets will also help to maintain a sufficient price premium. Resources The current financial difficulties are likely to result in a reduction in the breeding herd by the end of 2012. This will impact on the number of pigs slaughtered in England and on levy income. In the previous plan it had been hoped to increase levy spending in the priority areas. However this will now not be possible.
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Budget The forecast decline in pig slaughtering in 2013/14 will now mean reduced income of £341k compared to the budget for this year rather than the increase previously expected. As a result, adjustments have been made to the budget. It is proposed that R&D spend is reduced by £140k compared to budget (excluding carry over), and marketing spend is reduced by £57k. However, if the Board decides that we need stronger promotion of the Red Tractor more as an “ingredient brand” than spending would to be increased. A reduction in export marketing is possible due to a reallocation of shared expenses. This will not affect spending on project. A small increase is proposed for KT and Communications concentrating on raising awareness of BPEX services. MI spend will remain the same as this years budget. Overall, a deficit of £236k is proposed for 2013/14. This would reduce our reserves to about £3.1 million which is well within the agreed AHDB position of approximately 30% of income. The reserves include a value for Stotfold as at March 2012. Beyond 2014 BPEX activities for 2014/15 and 2015/16 will be determined by the BPEX Board as part of the regular annual planning cycle. However, the same strategic challenges are likely to remain and as a consequence, resources will continue to be devoted to production efficiency and adding value. If extra resources are available, these are likely to be directed at helping the industry close the production efficiency gap.
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MARKETING The remit of BPEX Marketing continues to be ‘to enhance the premium of British pork’ and this plan represents the context in which this objective is explored and to articulate the value that can be expected for the levy payers. Much has happened in the market place since the last board in September and the outcome of these developments on the marketing task for BPEX is significant. The impact of the ASA ruling on our reference to ‘high welfare’ in communications and the extent to which CiWF has made this a totem around which to frame their attack on Red Tractor has gained significant coverage in both trade and consumer press. The decision by Sainsbury’s to remove the Red Tractor logo from all meat (and other foods) packaging has also created a rush of media interest which, whilst not all negative, has placed the Red Tractor scheme in a defensive position. But the fact that the remaining retailers have chosen to stick to the scheme and retain the logo - with some now seeing the JS development as an opportunity for positive differentiation - presents a strategic opportunity for Red Tractor pork. Partnership marketing activities with the retail trade will consolidate relationships and provide a communications agenda for the future which places the Red Tractor brand at the heart of our joint agendas. . The new reality, however, demands that we shift the central proposition of our communications strategy from ‘high welfare’ to ‘rigorous standards of responsible production’ – thereby still embracing the welfare concept but from within a broader, more production-focused platform. The pillars of the Marketing strategy for 2013/14 are built around the core concepts of brand differentiation via Red Tractor and the promotion of pork and products. 1) Differentiation through Red Tractor Assurance; consumer messaging –
to build consumer awareness of the core values of RT pork and pork products via brand affinity
Red Tractor currently provides a mark of quality assurance but lacks the balance of both rational and intangible elements of a true brand. The value to the business of a brand at this point is the opportunity it will provide to create a dialogue, build a relationship with the consumer and ultimately elicit preference in a commodity driven environment. Communications programmes featuring PR and advertising content across all channels will create saliency (relevance) for British pork and pork products by exploring the meaning behind Red Tractor – beyond merely measuring recognition of the logo.‘ Back stories’ describing the rigour involved in the accreditation scheme will build engagement with the Red Tractor brand and create a community of evangelical advocates over time. British Sausage Week and Bacon Connoisseur Week provide opportunities to extend the brand message into a product and recipe-based environment and to engage retailers directly in the search for and recognition of excellence across all quality criteria. Developing Red Tractor Pork as an “ingredient” brand will require significant additional resources. 2) Differentiation through Red Tractor Assurance; trade messaging –
to enhance trade awareness of the values and rationale for the RT scheme in relation to pigs and pig meat
The message content of campaign material developed around specific themes such as 1.1.13 legislation will be adapted for individual retailer/processor inclusion in their own marketing activity.
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Close alignment with early retailer/processor/foodservice operator marketing strategy development will ensure that BPEX Marketing solutions are developed to meet bespoke communications requirements and that joint objectives are addressed, targeted and measured between the two partnership teams. The target is to halt the loss of the Red Tractor logo on pack and to halt the reduction in front of pack use. In addition, product-based roadshows aimed at the independent butcher sector raise awareness of the value of an endorsement to their businesses. 3) Promote Pork and Pork Products – to improve image perceptions of their value to a healthy life With the longer game in mind, the Marketing team is in the process of establishing a Public Health, Nutrition and Public Sector Procurement Working Group. The purpose of the group is to focus current health-related research programmes and Dept of Health engagement towards a proactive agenda of consciousness raising with both the consumer and trade. Furthermore, in 2014 the coalition’s Responsibility Deal is set to implement a public health framework which adopts a more localised approach and will be working with the Local Government Association to achieve local health and procurement objectives. A number of think tanks are also active within this agenda and it may be valuable for BPEX to partner in some of their research. A successful outcome would be a clearer understanding amongst consumers and opinion formers of the balance between a healthy diet and sustainable production standards. Budget (net levy) Principal Activities
2012/13 Budget £k
2013/14 Plan (£) RT Assurance Logo
Differentiation through Red Tractor – consumer messaging
1522
Differentiation through Red Tractor – trade engagement
675
Promote pork and pork products 172
People and overheads 637
Total 3007 2950
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Objective Activities Outcomes Targets and Monitoring
1. Differentiation through Red Tractor Assurance; consumer messaging To build consumer awareness of the core values of RT pork & pork products via brand affinity
Communications programmes (PR and advertising) across traditional and digital channels to elicit awareness, enhance brand saliency, preference, engagement and advocacy of RT pork values
Harness 1/1/13 legislation as platform to promote RT as a shopper solution
RT credentials established in the mind of consumers as sector indicator of responsible standards of pork production.
Consumers and principal shoppers preference for RT
BPEX tracking of RT Pork awareness maintained at 48% logo recognition. AFS YouGov tracking re key pork strategic metrics.
Dedicated Omnibus survey to evaluate reach of message content with target audience
British Sausage Week and Bacon Connoisseurs Week positioned to take the RT message to consumers in a recipe-based context
Raise profile of quality sausage and bacon as meal centre choices
Kantar media monitoring, agency EAV calculation - media efficiency equal to rolling 3 year average of Equivalent Advertising Value for ROI (estimated total value of coverage to spend)
2. Differentiation through Red Tractor Assurance; trade messaging To enhance trade awareness of the values and rationale for the RT scheme in relation to pigs and pig meat
Re-boot relevance of RT more closely to supply chain by developing tailored communications materials from national marketing campaign in partnership with processor/retailer marketing teams
Halt loss in RT logo use on pack or reduction in front-of-pack use
Porkwatch quarterly monitoring 4 co-branded marketing
programmes addressing joint RT/partner KPIs.
Place RT PR message content in trade press to address the implications/aftermath of 1/1/13 together with significant ad space presence in trade media
Increase in positive RT coverage in key titles; changing perceptions of RT as authority mark of excellence amongst key opinion formers and trade
Kantar media monitoring measuring penetration of messaging and value of investment v coverage achieved
Benchmark established during year.
Position product roadshows to influence independent butchers’ sector
BSW and BCW material to be extended for greater level of engagement with foodservice operators
Increased awareness of the value of a RT endorsement to their businesses
Number of participant businesses & product entries increased by 10% for BSW and 50% for BCW
3. Promote pork & pork products To improve perceptions of pork and pork products
Initiate Public Health, Nutrition and Public Sector Procurement Working Group to support the pork industry reputation re health, sustainability etc.
Launch programme of parliamentary and industry body engagement identifying platforms for proactive briefing of the value of pork in achieving a balanced diet and a healthy and sustainable lifestyle
More positive coverage in the media.
Millward Brown tracking metrics indicating pork as healthy, low fat meat to be maintained at current levels
Ratio of positive to negative coverage in media of 2:1.
Climate Change tracker research to remain stable across key metrics re carbon emissions
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RESEARCH AND DEVELOPMENT Introduction Improving efficiency; stockpeople and pig health and welfare were the 3 top priorities identified by the industry at the BPEX R&D Strategy Development Workshop in June 2012. The process of developing the Research and Development Strategy to 2016 will be completed in autumn 2012. Production efficiency The average cost of production is approximately 10p – 15p/kg dw higher than for our major EU competitors. This is mainly due to a lower level of sow productivity, lower slaughter weights and poorer feed conversion efficiency. Increasing performance and reducing the cost of production are the top priorities and are key to the future sustainability of the industry. Priorities include: Maximising exploitation of current genetics; Better ways of measuring efficiency; Increase precision of feed protein delivery; Improve efficiency of outdoor production; Improve efficiency of straw based systems. The commercial objectives of R&D are to identify and develop technologies that make the mating process simpler and more successful; and improve the performance of progeny through management practices and nutrition with research targeted at UK-specific production systems eg straw-based systems. Health improvement Research and development to improve pig health is to key to reducing the impact of disease on pig performance and the consumption of antimicrobials. The Pig Health Improvement Project (PHIP) is
at the core of the 20:20 Pig Health and Welfare strategy launched in August 2011. Reducing the impact of endemic diseases, (eg Swine Dysentery, PRRS and Enzootic Pneumonia), and protecting the industry from the risk of new (eg Peri-weaning Failure to Thrive Syndrome) and exotic (eg ASF, CSF, FMD) threats will be key to sustainable development. Priorities include: Support disease elimination – swine dysentery; Deliver robust disease control case studies; Demonstrate financial value of improvements; Develop efficient cluster group health plans; Improve effectiveness/efficiency of BPHS; Improve biosecurity, lorry wash, rodent control; Reduce antimicrobial use; Develop new control strategies for disease
BPEX will support the Pig Health and Welfare Council to establish the current baselines and monitor progress in meeting the targets for the 20:20 Pig Health and Welfare strategy. Food safety Management of food safety risks are key to reducing risk and maintaining consumer confidence. Progress in reducing levels of Salmonella pre- and post-harvest has been limited. Pressure continues to grow on the use of antimicrobials in livestock production, and optimising their use through development of integrated health and production management plans is critical to minimise risk of resistance development and residues. Priorities include:
Develop zoonoses control across supply chain; Develop cost-effective risk control with abattoirs; Further develop farm risk management tools; Respond to EU revisions of meat inspection; Develop new technologies eg ozone, steam.
The whole chain approach of the Zoonoses National Control Programme (ZNCPig) to reduce Salmonella risk should be extended to address risks from Toxoplasma, Yersinia and Hepatitis E. Food safety risk control will be integrated with health improvement in a One Health approach demonstrating cost-efficient benefits from actions for health, food safety and production efficiency. Welfare Welfare is at the heart of all BPEX activities and provides opportunities to differentiate English pigmeat. Balancing welfare with productivity is a priority. Specific priorities include:
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Develop welfare outcomes a management tool; Investigate solutions to tail biting, reduce tail docking; Reduce need for teeth clipping; Improve management of vulva biting; Improve husbandry of entire males; Develop efficient free farrowing alternatives. There is an ongoing commitment to supporting welfare outcomes as a management and benchmarking tool as it is rolled out through farm assurance. The focus for research and development will be on making progress in improving pig welfare that is not at the expense of unsustainable production. Environment The industry has to deliver against Government targets for reduced greenhouse gas emissions and other tough environmental standards especially on nitrogen and ammonia releases, odour and phosphate. The Environment Roadmap, Advancing Together, forecast reductions of 15-17% in the environmental impact of pig production in 4 key areas - climate change, eutrophication, acidification and abiotic resource depletion. There are opportunities to be exploited where efficiency gains and potential cost savings coincide with environmental benefits through investment. Priorities for reducing environmental impact include:
Define relevant emission factors; Improve ammonia/nitrate/odour control; Improve manure management efficiency; Develop Life Cycle Assessment. Improving livestock facilities and production systems will be a key element of Roadmap delivery and of increasing sustainability through improvements in performance efficiency, health and welfare. Better information is needed that can relate carbon footprinting and other impacts to business performance and to improved efficiency. Product quality Consumers are less likely to repeat purchase if the product did not meet expectations eg for eating quality, food safety and/or welfare or other attributes. Product quality was not identified as high priority at the Strategy workshop. Priorities include: Develop outcomes of EU research on boar taint; Influence of genetics on meat quality eg Duroc.
Where appropriate, opportunities to differentiate English pigmeat will be integrated within Research and Development activities. Studentship Programme BPEX invests in the development of the next generation of experts to ensure continuity in the ongoing delivery of science and technology needed by the pig industry, supporting PhD studentships in areas of research in key areas. There are also opportunities for developing technical expertise within the supply chain through the BBSRC Advanced Training Partnerships. Budget (net levy)
Principal activities 2012-13 £K 2013-14 £K
Production efficiency 175 370
Environment 375 225
Health 979 800
Welfare 137 90
Food safety 290 150
Product quality 155 40
Studentships 159 200
Research and Development Management 150 150
Total 2420 [1]
2025
[1]
Includes £255 carried forward from 2011-12
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Objective Activities Outcomes Targets and Monitoring
1. Production efficiency (£400K)
Research and development on production efficiency to support Knowledge Transfer.
Improved efficiency in production from the breeding and feeding herd.
2TS by 2014, 27 pigs finished/sow and feeding herd FCR 2.5 as measured by Agrosoft.
2. Environment (£300K)
Environment Roadmap targets - measuring and reduction of the environmental impact of the pig industry.
Roadmap targets achieved. 4% improvement as measured by LCA monitoring.
Ventilation Improvements to ventilation systems. 20 farms submit data from ventilation project.
3. Health (£800K)
Pig Health Improvement Project - The development of this comprehensive scheme to significantly enhance pig health and therefore performance.
Greater participation in the Pig Health Improvement Project.
85% of pig units registered with PHIP.
Demonstrate improvement in biosecurity. 70% of cluster farms receive and implement training in rodent control as recorded in PHIP database.
Greater working together on long-term health plans.
Creation of 10 producer group 5-year health plans
Develop industry plan of action for Swine dysentery elimination.
Industry-wide commitment to SD elimination and 2013-4 SD plan targets delivered.
Surveillance - monitoring and measuring of disease / health status in the pig industry
Baseline health status established and targets for improvement agreed.
PHWC agrees targets for 20:20 strategy
Pig industry surveillance strategy implemented.
Strategy launched with cross-industry support
4. Welfare (£100K) Promotion of improved welfare standards in breeding herds and finishing herds.
Welfare outcomes established as a cost effective pig management tool.
Welfare outcomes measured, collected and disseminated to all assured farms. 50%of welfare outcome measures submitted through iPig application.
5. Food safety (£200K)
Zoonoses National Control Programme for Salmonella in pigs (ZNCPig) on-farm and in abattoir support for risk reduction.
Salmonella prevalence on carcases is reduced.
Prevalence less than 8% as recorded in abattoir reporting to ukmeat.org database.
Use of Farm Tool by producers for Salmonella risk management.
80% of farms as recorded on database.
6. Product quality (£50K)
Review to identify opportunities to differentiate English pigmeat on quality.
Product quality research and development integrated within R+D activities.
Product quality workshop to identify opportunities.
7. Studentship (£200K)
Funding of PhD studentships.
Relevant research undertaken an talent attracted into the industry.
Research findings disseminated on completion; 75% employment in the industry.
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COMMUNICATIONS, KNOWLEDGE TRANSFER AND SUPPLY CHAIN DEVELOPMENT 1. Effective delivery of commercially relevant knowledge transfer products and services to assist customers achieve 2TS 2013-14 will be the final year of delivery for the current 2TS programme. Whilst the target has been achieved by top 10% producers and top 1/3 indoor units are approaching it, average business performance is currently c. 1700kgs per sow per annum. Analysis of business performance indicates that the gap between average and higher performing businesses is mainly due to disparities in breeding herd performance. ‘Target 27’ Following analysis of indoor and outdoor performance and a survey of high performing 2TS businesses it is proposed that the 2013-14 2TS programme is based on ‘Back to basics’. The programme will focus on best practice for breeding herds in spring 2013 and finishing herds in autumn 2013. The premise is that English pig performance on average units is not due to an absence of new knowledge but the application of existing knowledge, attention to detail and effective performance recording and interpretation. Training and knowledge transfer to unit staff - The 2TS business survey revealed that investment in staff training, attention to detail in all aspects of production management and effective recording were present in all 2TS businesses. In 2013-14 the KT team will produce and promote to customers, vets and AIG companies a series of DVD clips that can be used for on farm informal staff training. The use of DVD’s/web streaming provides highly effective demonstration of the what, why, how for all key aspects of husbandry for staff. It will also explain the potential impact on performance if areas of husbandry are overlooked or shortcut. Enhancing decision making - To compliment the KT package for stockman, the KT team will support owners and managers in decision making through better interpretation of physical performance data and a better understanding of the impact of improving or deteriorating KPIs. It is also proposed that dedicated KT ‘managers clubs’ are established to encourage exchange of knowledge and experience at this level within businesses. KT Products and services In 2013-14 the following specific BPEX KT products and service will continue to be offer to customers:
Barometer farms to assess KT delivery and identify emerging issues or customer needs
Farm trials/investigations to address specific husbandry issues common to a number of businesses
Increased KT funded producer and farm staff visits to exemplary businesses in UK and EU
Innovation grant fund
Field trials
Skill development and training
Farm reviews Knowledge Transfer also will continue to be delivered through a range of forums including national conferences, regional workshops, business clubs, and bespoke KT with individual businesses and customers. There will also be increased emphasis on dissemination of innovation grant and field trail findings to BPEX customers. The KT team will also place greater emphasis on gaining detailed production knowledge from other EU countries and support the introduction of a pig industry scholarship programme for undergraduates looking to develop a career in the pig industry. 2. Promoting BPEX KT services and increasing customer awareness of BPEX activity BPEX communications will continue to be disciplined in promoting BPEX KT products and services in a compelling targeted way as opposed to generic organisational promotion. However BPEX will
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introduce the BPEX ‘pig hub’ (Customer Relationship Management) system, to more effectively target customers in terms of both production system and also preferred communication channel.
1. KT webinars to extend the reach of interactive KT workshops into individual farm offices 2. Website and Social media 3. Adverts, advertorials, case studies, and editorial content in farming and trade publications 4. Direct mailings 5. BPEX products and services brochure 6. KT regional conferences, workshops and business club
BPEX will develop the following channels including:
1. A KT apps for ipads/smartphones containing all KT materials in one place that can be updated/extended and automatically updated to users
2. Ask the expert web forum 3. Regular online KT quizzes for stockman and managers 4. Facebook group for participants in Stockman Development programme and Stockman Plus
Ensuring that BPEX customers have an awareness and understanding of broader BPEX activities in areas such as Marketing and Market Information will continue to be of crucial importance. The website, coverage in trade magazines and the BPEX pig farmer will be the main devises used. In addition to customer feedback via barometer farms and the BPEX comms and KT subgroup, key account meetings with the largest BPEX customers to ensure BPEX continues to provide value for money and commercially relevant products and services delivered in an efficient and effective manner. 3. Enhancing supply chain communication The challenge of facilitating the development of trusting transparent supply chain relationships between willing partners remains. BPEX will provide objective support and market intelligence to parties looking to develop or enhance supply chain relationships but it will not develop the concept of a voluntary supply chain charter. It is proposed that BPEX contribute to the funding of an AHDB wide objective and independent consumer and media online resource to defend and promote food production based on the existing Meat Advisory Panel concept using respected independent experts, scientists and consumer champions. BPEX will continue to work with Defra and government agencies to maximise the benefits to the English pig meat supply chain provide by the adoption of eAML2 especially in the incidence of an exotic disease outbreak. Successful delivery of this business plan will be a customer that understands how and why levy money is being invested by BPEX; respects values and is influenced by BPEX knowledge transfer; recognises the benefits BPEX can deliver into his business, and how best to access these services. Budget (net levy)
Principal activities 2012/13 2013/14
£K
Effective delivery of commercially relevant knowledge transfer to assist industry achieve 2TS
788 717
Increasing customer awareness of BPEX activity 368 456
Enhancing supply chain communication 71 76
Total 1227 1249
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Objective Principal Activities Outcomes Targets and Monitoring
1. Effective delivery of commercially relevant knowledge transfer to assist industry achieve 2TS £717k
KT Conferences, workshops and business clubs and KT producer visits
Communicating new and existing knowledge on pig production techniques which result in individual businesses changing their behaviour to improve pig physical performance and deliver 2TS.
Achieve and average of 2000kgs of carcase meat per sow per year by 2013-14 financial year. Quarterly review of barometer farms to objectively assess KT performance, service and products. Achieve 300 attendees of KT conferences and overall 50% producer attendance at KT events. Deliver 8 2TS study visits to 2TS performing business in UK or EU with positive feedback
Target 27 Provide a digital best practice tool for breeding and finishing herds to assist business improve technical performance and achieve 26 pig weaned per sow per year on indoor breeding units (24 pigs weaned/sow/year on outdoor units) as part of the overall 2TS programme
Secure support from all BPEX AI Standard breeding companies and large vet practices for Target 27 best practice tool. Agrosoft quarterly breeding performance data. Vet and Breeding company endorsements
Innovation fund and on farm trials
Developing and demonstrating commercially relevant new knowledge and techniques to improve physical pig performance or address emerging husbandry issues
Approve 10 innovation grant awards Undertake 5 farm trails to address emerging issues and disseminate finding to all BPEX customers
2.Increasing customer awareness of BPEX activity) £456k
BPEX service promotion
Ensuring that BPEX customers have a fuller understanding of the range of products and services that BPEX can provide individual businesses
Improve BPEX annual survey service quality scores to 1.75.
CRM More effectively targeting appropriate KT to different business types including producers, AIG, Vet and processors
Achieve 100% awareness and utilisation of BPEX CRM tool by all KT staff. Target 50% of communications to relevant businesses Discuss with top 24 English pig businesses how and what BPEX products and services they wish to receive
Website and social media
Providing the English pig industry with timely, objective and accurate business relevant information via digital media and position the BPEX website as the ‘Google’ of the pig industry.
Average 40k monthly visitors to BPEX website Average 2k to MI section Average web page feedback rating of 2.5
3. Enhancing supply chain communication £76k
Supply Chain Relationships
Provide objective advice, data and market insights to companies and organisations seeking to develop supply chain partnership structures and agreements.
Be an independent party in the design or implementation of three supply chain agreements. Delivery via MI two market intelligence seminars to BPEX processors, food service and retailer customers
Pig meat image management
Develop in conjunction with other AHDB divisions a consumer and media facing ‘facts and myths about food production’ resource to promote the industry in the light of adverse NGO campaigns
Design and completion of a stand alone website developed with the support of AHDB, NFU and AFS.
Maximising the benefits of eAML2
Integrating data from eAML2 with other BPEX tools including the BPEX CRM system to gain a more detail understanding of pig industry structure and movements.
Automate data exchange between eAML2 and other BPEX data systems including CRM. Generate mapping of pig movements
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INTERNATIONAL Exports of pork, pork products and fifth quarter, including bones, play an important role in adding value to the pig carcase. With global demand for meat likely to grow it is important that the British industry has access to this additional or possibly alternative market. BPEX has three main functions in this area. Market Access – Exports to certain markets are controlled by bilateral government agreements. As government resources in this area are reduced it has become more important to help governments prioritise target markets. We also maintain official contacts so problems can be more easily dealt with when they arise. The priorities for 2013/14 are to extend the range of products and the number of companies that have access to the mainland China market. We will explore the possibility of an industry/government joint funded specialist in the Beijing Embassy. The industry contribution would be co funded with other AHDB sectors. Gaining and maintaining access to Australia and Taiwan will also be a priority. Other markets of interest will be targeted based on available resources and feedback from processors. Facilitation – Having gained access to markets we are assisting businesses with both outward missions to trade shows where we can “fly the flag” and inward missions and enquiries where prospective customers are looking for suppliers. The priority markets for 2013/14 will include the Far East, South East Asia and Australia. We will also take the opportunity to be represented on EBLEX exhibition stands I other markets. Market Intelligence – we are producing both regular weekly and ad hoc market intelligence about specific priority markets. This includes both market trend information and more specific details as required. Brussels Office We will continue to maintain an office in Brussels in conjunction with other AHDB sectors. This ensures that the industry is fully informed about emerging regulations and promotional opportunities for pig producers and processors. It also assists an effective communication network with other pig producing countries. In all this activity we work with EBLEX as a means of leveraging our levy investment. Budget (net levy)
Principal activities 2012/13 £K 2013/14 £K
Export Marketing 390 360
Brussels Office 65 65
Total 455 425
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Objective Principal Activities Outcomes Targets and Monitoring
Export Maintain export status with China and extend list of approved products for China
- Missions to China to complete negotiations and secure changes to export health certificate conditions to give greater export potential and carcase utilisation - Co-ordination of CNCA plant audits with DEFRA/FSA (likely to take place in 2013/14) including working with plants to ensure
- List of approved products extended to at least include feet. - Continued listing of all plants and export status
Growth in export volumes of 20% as measured by GTIS
Export Extend market access Increase in exports to 3
rd
country markets
- Work with DEFRA to finalise export certification for Australia including export mission - Market access work will also be undertaken to open the Taiwanese market (mission in co-ordination with China visit) - Trade promotion missions including trade shows in key Far East / SE Asia / Australia markets
- Secure export approval for Australia - Secure agreement for Taiwan inspection visit by end 2013
Quarterly progress report Positive feedback from exporters customer survey 20% increase in exports to non EU markets in 2013/14 vs. 2012/13 as measured by GTIS
Export Increase export of added value pigmeat products (Target markets include Japan, Hong Kong, Singapore and Malaysia)
- Trade development activities will include HOFEX Hong Kong, FHC Shanghai and a promotional event in Tokyo
- Increase in exports of added value pigmeat products.
15% increase in exp[ort of pigmeat products to non-EU markets in 2013/14 vs 2012/13 as measured by GTIS
EU Office Optimise flow of information and communication to and from EU Institutions
- Daily ad-hoc briefings and North America bulletins. - Monthly reports. - Annual networking event
Timely, accurate and well informed BPEX team.
Annual customer survey result target of 80% ‘very satisfied’
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MARKET INTELLIGENCE The objective of Market Intelligence (MI) is to provide relevant, useful accurate and timely MI to the English pig and allied industries. This should support them in understanding the market and making decisions that maximise their competitiveness and sustainability. The focus of the market intelligence supplied by BPEX is focused on two key areas: 1) Supply Side Information and Analysis and 2) Demand Side Insight. The Supply side information is externally focused and primarily is providing facts and analysis through regular publications, websites, other modern media (e.g. twitter). In addition, adhoc reports in to industry issues of note will be carried out e.g. the likely effect of new EU welfare regulations on 1.1.13. The demand side insight supports both the internal BPEX marketing function and provides information for external customers with both adhoc analysis and regular reporting. In addition the demand side MI makes a crucial contribution to many wider reports.
1. Supply Side Information and Analysis It is proposed that the following specific MI products and service will continue to be offered to customers:
The new Pig Market Weekly
Pig Market Trends
Newly introduced Country Reports to replace International Meat Market Review
DAPP and further development of it in line with industry requests
Interpig costings to allow us to monitor our international competitiveness
Cost of Production monitoring
The Pig Yearbook – a statistical roundup for the industry
Supply Forecasts
Provision of market analysis at industry meetings In addition the expanded MI content on the BPEX website will be maintained and developed.
2. Demand side insight
Much of the demand side MI activity is focused on providing bespoke analysis and insight based on a core monitoring and reporting function which then stimulates requests for additional analysis and insight. It is envisaged that this will continue to be delivered in the same way as in the past but we will seek to widen the access to this information so that those in the industry can make of much use of it as possible.
It is proposed that the following specific MI products and service will continue to be offered to customers:
Retail Price Spread Monitoring
Regular Retail and Food Service Market Summary Reports
Bespoke Analysis and insight
Country of Origin Monitoring
Category Report
Presentations to industry bodies and others Fundamentally successful delivery of market intelligence will be characterised by the industry being satisfied with the accuracy of analysis, timeliness of reporting, accessibility, usefulness, and value for money.
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Objective Principal Activities Outcomes Targets and Monitoring
To provide relevant, useful, accurate and timely Market Intelligence to the English pig and allied industries. £565k
Provision of Supply side MI to the pig industry
including data collection and provision, macro
economy and policy analysis, market forecasts and
costs of production which supports them in making
decisions about how to maximise their
competitiveness and sustainability. Maximum use will
be made of all media channels.
BPEX stakeholders and customers
are satisfied with accuracy of
analysis, timeliness of reporting,
accessibility, usefulness and value
for money.
BPEX Stakeholders will have the
information needed to make
business decisions.
Circulation of Pig Market Weekly is greater
than 800, monitored monthly.
Circulation of Pig Market Trends is greater
than 250, monitored monthly.
Website usage of MI pages is over 105,000
page views per annum, monitored monthly.
Forecasts are within 3% of actual, monitored
quarterly.
Achieve customer satisfaction ratings of at
least 80% for both supply side (external) and
demand side MI (internal). Annual monitoring
(external), biannual monitoring (internal)
Provision of demand side information to the pig
industry and BPEX marketing activity, particularly
consumer purchase and eating trends, country of
origin etc. which supports them in making decisions
about how to maximise their competitiveness and
sustainability. Maximum use will be made of all media
channels.
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