Profit margin – cost base increases all the time Perennial takers Lack of control the farm gate How to hold sheep in readiness for supply Abattoirs consistency / quality is random Economic benefit of bringing “other” merino meat into supply chain / value chain – eg lamb, hogget, mutton, wethers How to promote MPM ie the wool side of the story as well (is this an opportunity) “Commodity” mentality of growers Value adding – getting people to want our product Feed– supply “backgrounder” as important part of the supply working relationships Backgrounding facility – all through the same place Feeding regime Production form different geographic locations Explore non-mulesing or low mulesing Explore organic status Alliance with butcher’s or to own the butchers shop To utilise the Katanning Centre Abattoir – do our own Mobile abattoirs & mobile hanging facilities Shark Lake – source partner RESTAURANT OWNERS / CHEFS Consistency of supply – staggered process Difficult to engage public in brand with stop start (supply) Is such a thing as seasonality (of demand for product?) Fighting against retailer against everyday availability – educate consumers seasonality Chicken and egg to get MMM off the ground and what to do with offloaded sheep Need to “back up” the product – quality and consistency Great on-going consistent product versus fashion product RESTAURANT OWNERS / CHEFS Consumers want to know where product comes form Tourists want WA product Supply the story to restaurants for menus Educate consumers about food source, seasonality, story Bespoke product Promote WA product and brand Promote traceability and brand story YOUR INVOLVEMENT What are your specific that are critical to your involvement? KEY MARKET ISSUES What are the key market issues that need to be considered? Go further – assurance to be paid for produce Assurance product will be Clarity of supply – where product goes Confidence that product will go – guarantee Contracts Incentives to commit – price Recognised brand Brand integrity Transparency Tell our story Understand the integrity / story, the one percenters, honesty of the product
Secure increased profits with decreased overheads Easy start-up Protect interests of stakeholders Secure increased profits through ability to employ THREATS (external to the Cooperative Company Wrong people with the wrong ideas running off in the wrong direction Lack of vision and understanding the vision (foundational) Not understanding the co-op model Thinking we are ‘across’ information/ markets etc and we’re not Lack of humility Lack of equity Poor business/strategic plans Succession Lack of knowledge Wrong people with the wrong ideas running off in the wrong direction Values (motives) can change as shareholder driven and project driven and growth driven at the expense of the Company Lack of vision and understanding the vision (foundational) Understanding company legislation Lack of humility Thinking we are up to date with company model Losing control may be easier Hostile take overs. Passive take over Ambitions – over without right motives Lack of equity Poor business / strategic plans Succession Lack of knowledge Easier to move away from base – focus on other areas Workshop participants were asked to consider the different options for collaboration and note their preferences. OPTIONS: summary of key issues for each model SUPPLY GROUP (Grower, Alliance) COOPERATIVE COMPANY Keep it simple, progress expands from a Grower then to co-op Alliance of supply chain participants – what are the numbers interested and where it is coming from? Need commitment of supply Co-op can growers to commit to supply How get commitment? Use contract numbers such as 20% of flock, 20 head per week A Company would have employees that do the work (that is not rely on producers as volunteers) Get the right people Get the name right