Sunpork Group of Companies
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- Barbra Watkins
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1 Our future focus Sunpork Group of Companies
2 Welcome SunPork Farms is the foundation of the Sunpork Group of Companies and is focused on producing high quality, sustainable, welfare-optimal pork. SunPork Farms is an amalgamation of 27,500 sows and their progeny farmed over 21 production sites in three states (Queensland, New South Wales and South Australia). SunPork Farms is closely aligned with Cameron Pastoral Company, one of our shareholder companies, which will farm 11,000 sows in southern Queensland across 13 sites from 2016 having assumed responsibility for farms formerly operated by the Hall and McLean families, respectively. Together this brings the collective group to 38,500 sows under common management. This document serves to introduce SunPork Farms to all staff by providing an outline of structure and management, as well as a broad guide to our objectives over the next 12 months and some changes that may take place during that period. The Sunpork Group of Companies The Sunpork Group of Companies, of which SunPork Farms is a part, is wholly Australianowned by the Cameron (based in Goondiwindi, Queensland), Hall (based in Millmerran, Queensland) and McLean (based in Pittsworth, Queensland) families in equal shares. Nationally the Group represents 15% of Australian pork production and is the largest Australian-owned producer. Key components of the Sunpork Group of Companies are presented below: Shareholders Cameron, Hall, McLean Families Parent Company Sunpork Pty Ltd Subsidiaries Pig Improvement Company Pty Ltd PIC New Zealand Holdings Pty Ltd (50%) CHM Alliance Pty Ltd Sunpork Commercial Piggeries Pty Ltd APFG Holdings Pty Ltd (75%) Big River Pork (Murray Bridge Bacon Pty Ltd (32.5%)) Sunpork Fresh Foods Pty Ltd Subsidiaries Sunpork Fresh Processing Pty Ltd Sunpork Services Pty Ltd Swickers Kingaroy Bacon Factory Pty Ltd
3 The Journey So Far In the 1980 s the Cameron (280 sows), Hall (500 sows) and McLean (500 sows) families were operating independent piggeries on their own properties. Existing business relationships within the group (eg. BEC Feed Solutions, Sunny Queen Eggs) and the use of the same pig nutrition and production consultant prompted the first joint investment in PIC Australia with a view to securing long-term access to superior genetics for the group. The success of that investment has underpinned a 30 year journey to the establishment of SunPork Farms. Key events in the journey are summarized below: YEAR EVENT Acquired PIC Australia from Metro Meats, a division of the Adelaide Steamship Company, and maintained operations from a 2200 sow herd in Grong Grong, NSW. Established the CHM Alliance, an entity to deliver training, benchmarking and quality assurance services and later (2002) science and technology services to member companies Commenced export of carcases to Japan through Sunpork Foods Pty Ltd Acquired a 35% shareholding in Swickers Kingaroy Bacon Factory Pty Ltd Acquired PIC New Zealand from Goodman Fielder Wattie NZ Ltd with two other shareholders. PICNZ was originally licensed to NRM Feeds Ltd in Acquired Tong Park Piggery from Nippon Meats Australia. Tong Park is an 8,900 sow piggery near Warra in Queensland. Acquired all shares in Swickers Kingaroy Bacon Factory from Hans Continental Smallgoods Pty Ltd after they entered administration. At the time Swickers was one of two specialist pig abattoirs in Queensland but it is now the only accredited export abattoir remaining slaughtering approximately 16,000 pigs per week. Commenced operations of Sunpork Fresh Foods as a carcase wholesaling, marketing 2009 and product development business to enhance the value of carcases from the CHM The journey is not over. production SunPork facilities. Farms will continue to work closely with SunPork Fresh Foods to ensure supply of quality pigs meets demand and that our production systems are closely matched to customer requirements. Cameron Pastoral Company lease and operate piggeries formerly operated by 2011 DA Hall and Co Acquire a 75% stake in the Australian Pork Farms Group in South Australia. This is a 16,000 sow amalgamation across 16 breeder and grow-out sites and includes two feedmills and a share in the Big River Pork abattoir. Sunpork Fresh Foods acquires IMTFS Pty Ltd to secure supply chain integrity around value-added fresh pork products. Cameron Pastoral Company will lease and operate piggeries formerly operated by McLean Farms.
4 What is Our Focus for the Future? to be recognized as a leading pork-based business, maximizing profitability and sustainability of the supply chain and meeting our customer and consumer expectations This aspiration and the following attributes have been developed to date by a strategic planning process undertaken by the Boards of Sunpork Pty Ltd and Sunpork Fresh Foods Pty Ltd. We see the KEY SUCCESS factors that will underpin our long term business sustainability as: A consistent supply of high quality, safe products that meet consumer and customer expectations; A competitive cost structure; Strong management capabilities; Adherence to all compliance requirements. The VALUES that support our decision-making and shape our behaviour as a group are: Trust Our word is our bond Integrity What we say, we do Quality We never settle for second best Efficiency Cost control is a way of life Innovation Improved efficiency for less, making a better tomorrow today A key asset of SunPork Farms is the PROVENANCE STORY that underpins today s business activities: A 40+ year family farming tradition and the values we have evolved from this heritage, is the foundation of our growing pork production business. Our business has grown, developed, and now supports, Australian rural communities in the Darling Downs, Murraylands, Riverina and Adelaide Plains. Passionate people take pride in looking after what we believe are the best pigs in Australia. Unique genetics, most feed from our own mills using locally grown grain, combined with innovative production and nutrition programs will allow us to create a consistent and differentiated product offering. Continuous improvement of pig welfare, health, quality and efficiency drives our daily farming activities and forms the basis of investment and innovation principles. Investment in people to improve their animal care capacity and stockmanship has, and will continue to be, a fundamental part of meeting and exceeding customers and consumer expectations and our goal to produce safe, wholesome, high integrity food. We live our values every day! Trust, Integrity, Quality, Efficiency and Innovation. Our VALUE PROPOSITION or the key differentiators that will set us apart from our competitors are: Our provenance story and brand positioning (we are wholly Australian owned); Consistency in supply with a focus on compliance, safety and quality; Australia s most cost-competitive producers of high quality pork; The capacity, culture and drive to innovate and add value.
5 The First Steps as SunPork Farms Prior to 2014, the members of what is now SunPork Farms have operated as significant, but effectively independent, contributors to the Australian pork industry. Tong Park Piggery (8,900 sows), PIC Australia (2,600 sows) and the Australian Pork Farms Group (16,000 sows) have operated with their own systems and management. As an amalgamation, the challenge is to take advantage of the synergies conferred by the collective size of this group, develop some common operating systems, and most importantly, develop an identity and brand that staff are proud to be associated with. Our collective identity will be SunPork Farms. To develop this identity, what was the CHM Alliance, Australian Pork Farms Group and Tong Park will now be collectively known as SunPork Farms. While operationally part of SunPork Farms, exceptions to this branding will include: 1. PIC Australia operates under an international trademark and brand that is licensed to Sunpork Pty Ltd and will continue as our public brand for genetics services. 2. Cameron Pastoral Company will remain an affiliated family business under its own brand but shares resources, vision and operating principles and is an integral part of the SunPork Farms supply chain. 3. Training accreditation will continue to be issued under the auspices of the CHM Alliance Pty Ltd (which is our Registered Training Organisation). 4. For the short term, Big River Feeds will continue to operate under that name until suppliers are comfortable with the fact it is part of SunPork Farms. As a Group of Companies, SunPork Farms and SunPork Fresh Foods have a strategic focus to maximize the profitability and sustainability of the pork supply chain.
6 Organisational Structure SunPork Farms has a flat organizational structure with the Senior Executive taking a very hands on approach to the operations. The business is based upon three Operational Centres: 1. SunPork Farms South incorporates what was the Australian Pork Farms Group in South Australia and will include any future operations in Victoria, South Australia and Western Australia. Staff within this Centre are managed by Rod Hamann. 2. SunPork Farms Solutions encompasses all facets of the business that support the farming operations comprising what was the operations of the CHM Alliance. Business units within SunPork Farms Solutions include Financial Services, Nutrition Services, Benchmarking, Training, Science, Technology and Adoption and Veterinary Services. Staff within this Centre are managed by Robert van Barneveld. 3. SunPork Farms North includes the operations of PIC Australia and Sunpork Commercial Piggeries (Tong Park) and will include any future operations in Queensland and New South Wales. Staff within this Centre are managed by Paul O Leary. The Board and Senior Executive Team is depicted below: Board Robert van Barneveld (Chair), Ken Cameron, Simon Hall, Brian McLean, Ian Parish Managing Director Robert van Barneveld CEO - SunPork Farms South Group Strategic Sales Planning Manager Rod Hamann SunPork Farms Solutions Financial Services; Nutrition Services; Benchmarking; Science, Technology and Adoption; Training; Veterinary Services CEO - SunPork Farms North CEO - PIC Australia Paul O Leary Chief Financial Officer Marianne McKenzie Group Nutritionist Sally Tritton
7 What Has Already Been Implemented? It has been 12 months since Sunpork Pty Ltd acquired a majority share of the Australian Pork Farms Group. During this period, we have taken time to assess the relative merits of the respective businesses and identify areas where synergies exist and where there are opportunities to improve the overall operational effectiveness. While not necessarily obvious to all, the following have already been implemented: Appointment of a Group Nutritionist and development of Group Nutrition Services; Appointment of a Chief Financial Officer and review of all existing financial systems; Initial agreement for the delivery of veterinary services and steps to internalise veterinary services; Review and appointment of Group Auditors; Completion of a risk management review and appointment of a Group Insurance Advisor; Group purchasing of specific feed additives and pharmaceuticals; Amalgamation of respective Science, Technology and Adoption Programs; Restructure of Board procedures, meetings and communications; Development of a brand and identity; Refinement of the SunPork Farms structure and Operational Centres; Development of uniform budgeting procedures; Completion of the final steps in the Australian Pork Farms Group acquisition implementation plan; Meetings of key staff to identify opportunities and strategies for a more competitive SunPork Farms. What s Next?... While most of the work completed to date has had little exposure at farm level, the next steps are likely to be far more obvious. Over the next months the following may have a direct impact at every level of the business: Implementation of the SunPork Farms identity including branding on farms, clothing and all communications internally and externally. Line Managers will roll out the branding process with their respective staff; Implementation of a new Enterprise Resource Planning (ERP) and business management software for financial management of the business that may influence things like ordering and reporting; Implementation of a SunPork Farms Veterinary Services Unit; New forms of communication between the business including e-newsletters; Use of structured project planning and management to pursue new initiatives and production strategies at farm level; Wider implementation of benchmarking and application at farm level to monitor and improve production performance; New training tools; Potential development of group human resources programs and career development pathways; Assessment of alternative production systems and sites to ensure we can produce what the market demands and meet the requirements of our customers.
8 We are working in an exciting business that has many opportunities to grow, improve and prosper. Change is inevitable and is something we need to collectively manage so that all staff are comfortable with the journey we have embarked on. There will be times when implementation could be enhanced, but all staff are operating in a new environment and we will hopefully work together to ensure we learn from our mistakes and collectively benefit from our triumphs. This document hopefully clarifies what can be a complex collection of entities, and provides a clear outline of who we have become, how we strive to operate and how we would like to be recognised SunPork Farms. Sunpork Group of Companies
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