Annual OperatingPlan

2019 - 2020

Message from the CEO

Our industry has never seen more change

Australian Meat Industry Council's (AMIC)

focus is to ensure our sector is

recognised for the crucial role it plays in

the agribusiness supply chain. We

achieve this by taking on the industry?s

most pressing challenges associated with

six key priority areas:

- Access to Labour

- Animal Welfare

- Market Access

- Food Regulation

- Energy Efficiency

- Small Business Management.

AMIC's 2019 - 2020 Annual Operat ing

Plan tackles these challenges head on,

demonstrating our commitment to

creating a thriving, profitable and

sustainable meat industry.

By uniting industry stakeholders and

government, AMIC will endeavour to help find

solutions that support every part of the supply

chain to promote a vibrant and prosperous

sector within Australia's economy.

Patrick Hutchinson

AMIC Chief Executive Officer

Our industry supports over 100,000

jobs

SIX KEY PRIORITY AREAS

Energy Ef f iciency

Energy cost and supply is one of the most

significant and pressing concern for our

members, who are dealing with increasing

costs, limited energy competition and

restrictions around implementing cheaper

and more sustainable options.

Anim al Welfare

AMIC and our membership are

committed to proper, stringent and

accountable animal welfare practices

across the supply chain. We have a

welfare committee within AMIC that is

solely focused on understanding and

implementing the best practices around

welfare and we also have an

independently assessed welfare

certification system.

Food Regulat ion

The red meat industry?s food safety

reputation is built on a strong

framework of legislation, industry and

government programs. Australia's meat

industry and AMIC have implemented

measures along the supply chain to

ensure the safety, quality and integrity

of Australian produce.

Access t o Labour

Our industry directly supports 100,000

jobs in Australia with labour accounting

for more than half of a business's cost to

operate. But members are held back by

labour deficits and a visa system not fit

for purpose. Together with inadequate

funding for training, this has led to many

businesses being prevented from

running at full capacity, with difficulties

in filling job vacancies an ongoing

concern.

Market Access

Free Trade Agreements (FTA) are

essential to gaining market access and

there have been some good wins on this

front in recent years ? but FTAs are not

enough to help our members maximise

their market potential. With more than

70 per cent of the beef and sheep meat

produced in Australia being exported,

improved market access has never been

more important.

Sm all Business Managem ent

Supporting the small businesses that

are the backbone of our industry is

critical to ensuring the overall health of

our supply chain. Resources, tools and

advocacy are essential to ensure our

members are best placed to thrive in

tomorrow's sector.

Our RoleAustralian Meat Industry Council is the voice of Australian

businesses in the crucial and complex post-farmgate meat

industry. Our 1,500 + members employ thousands of people and

are huge contributors to their local economies. We are

continually working towards a more competitive and

prosperous meat and livestock supply chain that is good for

members, good for industry and good for communities.

We do this by advocating for effective and strategic policy,

supporting our industry on important issues and providing

members with tools to build and grow their businesses so they

remain competitive and profitable within the Australian and

global supply chain.

Our VisionA profitable and sustainable Australian post-farmgate meat

supply chain, valued by the wider community.

Our MissionTo increase profitability of our members through advocacy,

innovation and delivery of services.

Our Role

Our Vision

Our Mission

Our Goals- Increase profitability of our members.

- To be a leading voice on industry issues.

- Grow membership and engagement.

- Increase innovation and continuous improvement.

- Develop strong relationships that benefit our members.

Our Values- INTEGRITY - we adhere to the highest ethical standards.

- COLLABORATION - we work with others to achieve our goals.

- INFLUENCE - we advocate respectfully on behalf of our members.

- EXCELLENCE - we strive for quality and continuous improvement.

- COMMUNITY - Members are at the heart of what we do.

AM IC M EM BERS

PURCHASE OVER 9 0 %

OF ALL LIVESTOCK

IN AUSTRALIA

$ 1 .2 BILLION FRESH M EAT IS SOLD AT

INDEPENDENT RETAIL BUTCHERS ANNUALLY

200,000DIRECT AND INDIRECT JOBS

OVER THREE TIM ES THE PER CAPITA

BEEF CONSUM PTION AS

THE W ORLD AVERAGE

Austral ians are amongst the biggest meat eaters in the world

OVER FIVE TIM ES THE PER CAPITA SHEEPM EAT CONSUM PTION AS THE W ORLD AVERAGE

POST-FARMGATE MEAT INDUSTRY

POST-FARMGATE MEAT INDUSTRY

An average of 20 Butchers in every Federal Electorate

$30 bil l ionINDUSTRY VALUE

AUSTRALIA'S LARGEST TRADE EXPOSED M ANUFACTURING INDUSTRY

$4bn

AUSTRALIAN SM ALLGOODS M ARKET

AUSTRALIA'S BIGGEST AGRICULTURAL EXPORT

EARNER (7th largest export earner overall)

(3rd largest manufacturing export earner overall)

AMIC continues to strengthen our relationships with key stakeholders through:

• Strong engagement with government departments, such as the Department of

Agriculture.

• Strengthening our policy position on market access via international trade

relationship programs.

• Active working partnerships with a number of associations, such as Australian

Agriculture Manufacturers Alliance (AAMA).

• Continuing to develop our historically close relationships with key industry

bodies, such as RMAC, AMPC, MLA, MINTRAC, AUS-MEAT and APL, who have

been instrumental in helping us deliver outcomes for our Members.

Through a united voice, AMIC will continue to promote the importance of our sector,

to help guarantee a sustainable future for all stakeholders.

Key Association Examples

Australian Peal< Shippers Association

Provide members with insight into the international shipping industry, and works on all key logistics issues within the red meat industry.

Council of Small Business Associations of Australia

A powerful ally for AMIC in the representation of our members running small businesses. Advocating on issues such as energy, taxation, payroll and retail tenancies.

Australian Agricultural Manufacturers Alliance

An alliance that represents the shared interests and issues of agri-manufacturers. AAMA provides AMIC members with a louder collective voice on issues such as energy, water, infrastructure and regulatory burden.

Asia Society of Australia

Helping to build a bridge between Australia and Asia across businesses, policy and education.

Key Indust ry Bodies

INDUSTRY STAKEHOLDERS

AMIC collaborates with MLA on groups and task forces such as the Retail Task Force (working together to support the Independent Retail Butcher Channel). MLA is responsible for R&D, Marketing, Market Access and Insights, Innovation through Commercial Investment, Biosecurity, Animal Identif ication, Animal Welfare.

Meat & Livestock Austral ia (MLA)

Red Meat Advisory Council (RMAC)

RMAC is a network (including AMIC) of producers, lotfeeders, manufacturers, retailers and livestock exporters representing 82,500 beef, sheepmeat and goatmeat businesses across Australia. RMAC is currently reviewing the Red Meat Memorandum of Understanding (MoU) that governs the industry, as well as the Meat Industry Strategic Plan (MISP) that provides a strategic plan for the entire red meat industry.

Austral ian Pork Limited (APL)

APL is a producer-owned company delivering integrated services that enhance the viability of Australia's pig producers. They deliver integrated marketing, innovation and policy services along the pork industry supply chain. AMIC works closely with APL to leverage the relationship on behalf of members.

AUS-MEAT

AUS-MEAT is a not-for-prof it company, set up in 1998 as a joint venture between AMPC and MLA. Its principal objectives are the management of the red meat trade descriptions, and the AUS-MEAT National Accreditation Standards. AUS-MEAT also administers the Australian Livestock Processing Industry Animal Welfare Certif ication System (AAWCS) on behalf of AMIC.

Austral ian Meat Processors Corporat ion (AMPC)

AMPC is the Rural Research and Development Corporation that supports the red meat processing industry throughout Australia. AMPC's mandate is to provide research, development and extension (RD&E) services that improve the sustainability and eff iciency of the sector.

Nat ional Meat Industry Training Advisory Council (MINTRAC)

MINTRAC represents the industry on training matters, and strives to improve the skil ls of workers in the industry through provision of recognised and accredited training from entry level through to senior management.

Our Role

Our MissionTo increase profitability of our members through advocacy,

innovation and delivery of services.

2018/2019 ACHIEVEMENTS

- 'Making the Meat Industry a Safer Place' - Completed

- Established Q Fever Task-Force to drive awareness and reduce

associated costs - Completed

- Development of Workers Compensation and Return to Work Guideline

Information - 2019/2020 Launch

- Established 'Launch into Work' Program' - 2019/2020 Continuation

- Apprenticeship and Traineeship Pack - 2019/2020 Launch

- Streamlining administration with the introduction of Employment

Hero and Electronic Payments to Creditors - Completed

- Market access and trade relationship programs - ongoing

- Provision of export assistance including technical advice - ongoing

Projects

Communicat ion- Launch of new AMIC websites, www.amic.org.au and

www.agmanufacturing.com.au

- Development of new CRM System using iMIS - Launch 2019/2020

- Launch webinar series - Ongoing Quarterly

- Crisis Management Tool Kit - Completed

- Media Releases covering - Labour, Energy, Animal Activists Activity,

Employment, Visas and more - Completed

- MLA Retail Task Force

- Launch of 'The Butchers Advocate' - Ongoing Monthly

- Prime Cuts - Ongoing Weekly

- Regular Processor Group circulars

2018/2019 ACHIEVEMENTS

- Regional, State and National Sausage King, Best Butchers

Burger and Apprenticeship Competitions - Ongoing Yearly

- State and National Awards Dinners - Ongoing Yearly

- Launch of Meat Business Women - Ongoing Biannual

- Launch of Pink Butcher - Ongoing Yearly

- Young Guns - Ongoing Yearly

Events

- Launch of Australian Agriculture Manufacturers Alliance

- Labour Discussion Paper - Completed

- Pre-Election Campaign - Completed

- Animal Activist Management - Ongoing

- Launch of New Lamb Definition - Completed

- Cost to Operate Report - Completed

- RMAC Memorandum of Understanding and White Paper -

Completed

- Advocacy Touch Points:

- Regulatory Cost Recovery

- Market access

- Visas for Overseas Workers

- Labour Deficits

- Halal

- Energy and

- Country of Origin Labelling

Advocacy

AMIC's goals for 2019-2020 have been developed in consultation with our members,

focussing on strengthening our position regarding the six key priority areas.

These priorities provide the best path for us to adapt and evolve to the ever changing

environment in which our members do business. Our strategic framework is centered

around five operational themes:

- Advocacy & Influence

- Value & Service

- Digital & Communications (Comms)

- Systems & Innovation

- Partners & People

Each theme is designed to improve recognition of our sector as well as our industry's

capacity and capability in both domestic and international arenas.

We will strive for better representation, issue management, member services, key

industry events and more, in order to provide a strong industry voice for all our

members in all areas and sectors we represent.

We will focus on pro-active advocacy programs centered around animal welfare,

energy, access to labour, reducing red-tape and improving market access. We will also

provide technical support on food safety, such as labelling and compliance with

regulatory requirements, Food Safety codes and animal welfare certification. Our aim is

to strengthen Australia's reputation for producing clean, green and safe meat products.

We will represent members in many state and national forums. We will strive to help

with issues relating to improved Workplace Health and Safety outcomes, provide advice

regarding workplace agreements, wage calculations, communication and business

operations and more.

We will focus, as always, on enhancing the profile of our members and providing

recognition for their achievements through events such as National Sausage King,

Smallgoods Competitions and Apprentice Competitions, together with awards nights,

state based events and national campaigns.

Each focus point is designed to improve the profitability and sustainability of

Australia's post-farmgate meat supply chain, valued by the wider community in

Australia and overseas.

2019 - 2020 Goals

Advocacy &

Inf luence

Value &

Service

Digit al &

Com m s

Par t ners &

People

Syst em s &

Innovat ion

FIVE OPERATIONAL THEMES

We w il l

advocat e for a

st rong

Aust ralian

m eat indust ry

AMIC w il l fur t her

st rengt hen our engagem ent

w it h all levels of

governm ent , indust ry

bodies and key associat ions

t o suppor t advocacy

pr ior it ies and im prove farm

gat e ret urns.

Each of our t hree pr im ary

operat ing divisions'

st rat egic direct ion is

governed by t heir

respect ive indust ry council.

This w il l ensure t hat t he

m ost pressing issues have

t he level of focus needed t o

ef fect change.

...we develop and advocat e for policies t hat prom ot e t he int erest s of our indust ry.

8. Council and Board Succession Planning

for November 2019 Elections.

9. Implement National Membership

Meeting program.

10. Develop and advocate policies for

Members to reduce energy costs and

R&D links to sustainability.

11. Help members prepare for audits and

assist with corrective responses when

required.

12. Develop Q Fever Awareness Program

with AMPC , Federal and State

government departments.

13. Quarterly Executive meetings with each

peak industry council.

14. Influence regulatory reform through

reviews such as:

a. Department of Agriculture (DA)

Cost Recovery Model.

b. AEMIS - working with members

on agreed recommendations.

Goals

1. Enable greater engagement of

members in policy and advocacy

through member participation in

National Processor, Retail and

Smallgoods Councils (and any

other member advisory

committees)

2. Develop an advocacy

communications plan to support

members becoming more active in

advocacy.

3. Increase market access through

China and Halal Trade Groups and

government engagement.

4. Develop R&D projects with

Australian Meat Processing

Corporation (AMPC).

5. 'Attraction, Recruitment and

Retention of Labour ' joint project

with AMPC.

6. AAWCS (Animal Welfare

Certification) standards review,

analysis and management.

7. Coordinate Smallgoods and Retail

IRCs and committtees to achieve

strategic outcomes.

ADVOCACY

We will provide services that strengthen and promote a more collaborative membership community.

Our focus will be the ongoing development of services that provide pathways to profit for our members.

Understanding our members and their needs will be of critical importance, as will responding to that understanding with relevant benefits.

Goals

1. Develop health check tools for all

members.

2. Implement National Member

Engagement Plan.

3. Build Awareness of HR and IR

services.

4. Development of Workers

Compensation claims process and

Return to Work guideline

information for members.

5. Webinars for all categories.

6. Retail Part Payment Plan trial

program.

7. Membership Surveys and

Consumer Research, to develop

effective promotion, advocacy and

marketing campaigns, across all

categories.

8. HR/IR workshops for Members.

9. Develop 3 new National

Membership Benefits.

10. Events, including online registration

and payment

VALUE & SERVICEVALUE & SERVICE

We will drive change using digital communication platforms, to promote, disseminate and implement our services and projects.

AMIC's communications strategy is designed to drive strong information sharing to powerfully effect change.

It encompasses communication tools that will allow us to promote and engage more effectively, to help promote our services and the value we represent to the industry.

Goals

1. Membership collateral updates:

acquisition, new members and

renewals.

2. Delivery of electronic

e-newsletters:

a. The Butchers Advocate

b. Prime Cuts

c. Smallgoods

d. Employment Services

3. Annual and Monthly

Communication Calendar.

4. New AMIC Style Guide.

5. Creation of a Sponsorship

Prospectus.

6. AMIC Elections for Board and

Councils.

7. Communicate member value

proposition to members.

8. Develop an intranet portal for

internal communication.

9. Membership Smallgoods

Survey

10. AMIC Member Engagement

Survey.

DIGITAL & COMMUNICATIONS

Cont inuous innovat ion w il l al low AMIC t o provide m em bers w it h st ream line and ef fect ive business services.

Goals

1. CRM data management

integrity.

2. Support Members transfer

into digital platforms,

including self-service and

online payments.

3. Extranet - providing a secure

section for members

containing policies, forms,

links, HR/IR information and

more.

4. CEO, Board and Council

Dashboard reports created in

iMIS.

5. Implementation of a new

Finance System.

6. Development of new Policies

and Procedures.

7. New E-Commerce system,

including invoice scanning,

electronic payroll and

integration with new CRM.

8. Develop Workers'

Compensation Claims

process and Return to Work

Guideline information for

members.

9. Skills gap analysis of

Apprenticeships and

Traineeships.

SYSTEMS & INNOVATION

Unit e our indust ry t hrough collaborat ive in it iat ives designed t o m ake Aust ralia's m eat indust ry t hr ive.

Goals

1. Update current HR/IR

publications.

2. Engage with MLA and APL on

smallgoods initiatives and media

communications.

3. Develop smallgoods reference

committees to identify and

respond to industry issues.

4. Drive Retail Taskforce initiatives

with MLA and APL on all

categories.

5. Launch into Work

Pre-Employment Program with

Federal Department of

Employment, Skills, Small and

Family Business.

6. Strengthen our key industry

stakeholder, government and

association relationships.

PARTNERS & PEOPLE

A unit ed voice builds a st ronger indust ry and a sust ainable fut ure in which we can all prosper .

Aust ralian Meat Indust ry CouncilL2/460 Pacific HighwaySt Leonards NSW 2065 T: 02 9086 2200E: admin@amic.org.auW: www.amic.org.au