PRESIDENT’S ANNUAL REPORT
TO MEMBERS, 2010

AGM 2010
2009 has been a step-change year for our association with the implementation of several long term strategies and initiatives aimed at furthering our mission statement – ‘to maximise member’s profitability’. McDonalds, Certified Angus NZ, Angus Pure Source and Trace, AngusPure members club, re-branding as AngusNZ, and unprecedented demand for Angus seedstock are wonderful achievements for a Chairman to be able to report on. Unfortunately the big negative of AM and NH analysis costs came from left field and ruins what would have been a successful year.

Financially it has been a very contrasting year to 2008, but the loss on this years accounts must be taken in context of a previous year profit massively distorted itself by a one-off income event. Our rolling average remains sound, the budget for 2010 is for a return to profit, and your board has been exploring means of increasing revenue without taxing members further. We look forward to a financial return on these initiatives.

Finance
In my role as treasurer I have to report that a financial loss occurred in 2009.

Without being dismissive, it needs to be taken into accounts that this was brought about by;
The one off and unforeseen expenses related to the testing for the two genetic defects Arthrogryposis Multiplex (AM) and Neurophatic Hydrocephalus (NH) which amounted to $40,000. Considerable work has gone into identifying these costs and the recovery of them for the future.

The strategic decision by Council to re-brand. This is a one off cost of $17000, but felt, with the outstanding success that AngusPure and associated programmes is having in the marketplace, to be the opportune time for this to be done.

This along with a small increase in Council expenses, no dividend from AngusPure and costs related to the launch of the very successful McAngus brand contributed to the loss.

If you look at page one in this booklet the AngusNZ mission statement reads ‘To maximise members’ profitability’. Council firmly believe that the initiatives they have encouraged and fostered have helped achieve this Mission.

Indeed, some of the other honourable goals on that page have also largely been achieved too.
While success does not come cheaply we are mindful that we need to take steps to ensure that the financial result from this year is a one off, and indeed the budget for 2010 does show a small profit.

I would like to thank Bruce for accepting what turned out to be the biggest hospital pass, probably in the history of the association. With Richard Martin about to step up into the position, we can look forward to a culture of austerity.

Promotion / Publicity / Sponsorship
We as a Board are very conscious of maximizing breed exposure and initiatives within a restrictive budget. The main focus for the 2009 year was the rebranding to Angus NZ to coincide with the launch of the 2013 World Angus Forum. We are very proud of the outcome and believe this brand positions our organisation positively for the future.

The cattleman continues to be an excellent publication for promoting the Angus story. Also the new format newsletter has had a favourable response. Due to a wider industry circulation this publication can only enhance our breed profile.

The McDonald’s nation wide Angus Burger launch and promotion has been an amazing success story. We must congratulate and thank Angus Pure NZ Ltd for this initiative.

I wish to thank all those who sponsor Angus NZ. I ask the membership when making business decisions with their respective enterprises that they give due consideration to those who continue to sponsor our organisation.

BEU
36 bulls were entered into the FMG Bull Evaluation Unit this year by 26 breeders.

We were again very grateful for the continued major sponsorship of FMG Ltd in particular and those other 10 companies who have sponsored us in their special area of expertise since the inception of this format.
For the final Open day 21 of the original 36 will be on show, from which the final animals will be selected to go forward to the national sale in May.

There is a very good top in this group so they should represent the BEU well.

Our sincere thanks and appreciation go to Maurice and Margaret Berwick, they have become very adept at running our BEU bulls and bringing them out so well for the final event – a job very well done, thank you.

Sales
The National Sale was one of the disappointments for the year, affected by the drought at the time and the arrival of genetic defects. However with Council direction, members have rallied to the cause and entries for this year look promising as this goes to print.

The bull selling season throughout the country though, went extremely well for Angus vendors as the programmes that have been developed for the Angus breed begin to be recognised by commercial farmers and meat companies alike.

PBBnz
The DNA service from PBBnz has been well used. The system works well and has seen modification to improve efficiencies. The manner in which clients present their samples have an influence on the cost to clients.

The new office continues to operate effectively and is well used by stakeholders and others.
We at Angus appreciate the service that Murray Meads and his team provide.

AngusPure / Steak of Origin
The past year has been an extremely busy one for the Company. With the World Recession, 2009 was always destined to be a challenge and that is reflected in a slightly lower level of commission sales, we still managed to grow the brand name and build a solid platform for recovery.

The highlights of the year have been the McDonald’s Angus Burger launch and the move into Foodstuffs supermarkets north of Turangi. These now number around 50 supermarkets stocking AngusPure.
The McDonalds programme has given Angus a presence among consumers that we would not normally have been able to achieve in a lifetime. The effect of this programme should be ongoing and the burgers are now a permanent menu item.

A further initiative was the launch late last year of AngusPure Source and Trace. This is about providing our customers with a “guarantee” that they are getting the finest, but also provides the farmer with a great add on “brand label” to any store stock or finished stock he is marketing.

Some exciting new developments for early 2010 will be the expansion of Foodstuffs offering to include the rest of the country and the launch of a new AngusPure sausage in the middle of March. We will also be announcing a livestock marketing option as well. I urge you all to support our programmes.

Tim deserves our utmost praise for the time and effort he has invested for us. Our step-change is largely attributable to him. Thank you Tim.

Youth / Future Beef
The Youth Trust was once again overwhelmed by the response from the auction held at the Southern Angus Ward Tour and is ever grateful for the support from Angus Breeders. We continue to support FBNZ as a sponsor, providing both steers and financial support and are pleased as Future Beef success increases as each year passes.

Kate Fisher travelled to Summitcrest and then onto the Canadian World Forum where she met up with Mark and Charlotte Stevens, all reports are that Kate was an excellent ambassador for New Zealand Youth and Angus. Katherine McCallum from Te Anau was the Trans-Tasman exchangee for 2009 and also represented the Trust well. Nicola Smith from Christchurch has just returned from the 2010 exchange with some new initiatives for the Trust to explore.

Borthwick Vineyard has again produced some excellent wine for the Trust to sell and this year we have a Pinot Noir and a Sauvignon Blanc for sale and we have had positive comments back on both of the wines.

World Forum 2010
A great team of 26 Kiwis came together to form a strong NZ presence at the 2009 Canadian Forum. Much was observed and learnt and we had the benefit of Sally Bary our Conference convenor. This gave her a great insight as to how these events are run, to help in our planning for 2013.

Much of the work of the committee centred on our presence at the Canadian event and the feedback was positive. The steering committee has now been appointed as the working committee for 2013 with the addition of Bruce Alexander and Mark & Charlotte Stevens.

The work will continue as 2013 is fast approaching!

Miscellaneous
The Southland Ward Tour was a great success that combined wonderful southern hospitality and scenery with a real cross section of cattle and the chance to listen and learn, from a US cattleman possessing rare insight and bovine knowledge. Gearld Fry’s wisdom was an inspiration for many. Well done to the southern organising committee. I would recommend all members participate in these tours for the markedly different approach now taken to member education on the tours.

Board / Staff
It has been a pleasure working alongside the existing board. They have a balanced mix of pragmatism and foresight, wisdom and enthusiasm. I thank them all for their involvement, dedication and hard work.
Most especially however, I would like to extend my sincere thanks to Rob Wylie, our General Manager.

Every retiring chairman is vociferous in their praise of Rob for very good reason – he is a most dedicated and conscientious servant exhibiting dignity and integrity, forever resolute and all-suffering. You have a very difficult job at times Rob, borne well, many thanks.

It has been an honour to serve as your chairman for this year and a pleasure to participate in instigating many of the programs that will maintain our future prosperity. The new management team are ably supported by future leaders, guided by experience and wisdom, and backed by the best breed in the business – long may that remain.

Will Macfarlane
Chairman
Angus NZ

Archives from previous Presidents

Presidents Report 2009

Presidents Report 2008

Presidents Report 2007

Presidents Report 2006