NORTH SOUTH BEEF ALLIANCE Steering Committee Rob Gillam, Bob Nickels, Craig Forsyth, Tony Rosser, Joe De Pledge, Kathryn Fleay, Nathan Craig Project Co-ordinator Courtney Martino

ACKNOWLEDGEMENTS Royalties for Regions Roger Verbrugge

NORTH SOUTH BEEF ALLIANCE Keys to success: Communication Trust Symbiosis

NORTH SOUTH BEEF ALLIANCE Project aims to: Build trust and communication Build supply chain linkages between Pastoralists, Backgrounder Farmers, Live Exporters/Feedlotters/Processors. Provide production guarantee for pastoralist Remove management risk for receiver Develop a repeatable, quality controlled production system.

Complimentary Climate and Feed Tropical 500-1200mm Dec - April Mediterranean 350-600mm May-October These four factors are critical to profitability

NORTH SOUTH BEEF ALLIANCE Outcomes of project Ability to value add cattle … making pastoral cattle more attractive in the market place Improved cash flow for pastoralists Improve supply networks and continuity of supply from north to south To help southern processors and exporters decrease cost of production

BENEFITS TO PASTORALISTS Pastoralists’ profit similar to station finished steers. Reduces dry season risk. Develops another market for pastoral cattle. Less shrinkage to port. Stock on hand for boat premium Improving marketing – identify specific cattle for different markets.

BENEFITS TO BACKGROUNDERS Larger numbers with one ear mark. Matching feed demand to the feed supply. Flexibility of system enables quick turnover to meet short term markets. Proximity to Port of Geraldton and Fremantle means cattle can be moved easily. Allows finances to be available to develop the pastures and farm infrastructure by not purchasing cattle.

BENEFITS TO BACKGROUNDERS Comparison of gross margins for multiple enterprises   Gross Margin ($) Gross Margin ($/Head) Gross Margin ($/DSE) Gross Margin ($/Ha) Backgrounding Cattle 89,680.00 298.93 33.20 123.29 Breeding Cattle 94,135.90 356.36 34.85 128.95 Trading cattle 88,460.00 294.87 32.75 121.18 Wheat (High inputs, low yield) 87.32 Merino (Wool Production) 100,425.00 37.19 137.62 Terminal (Lamb Production) 100,261.00 37.13 137.39

VALUE ADDING PILBARA - EAST & WEST HEIFERS IN - 20 June 2016 - 350 head @ 253kg bwt OUT - 7 Nov 2016 - 350 head @ 380 kg bwt 140 days weight gain = 127kg or 50% = 885g / day per head COSTS On arrival - Hay = $5 per head Backgrounding charge = $1.50 per kg gained Figures ex GST

VALUE ADDING UPPER GASCOYNE HEIFERS IN - 15 Feb 2016 - 200 head @ 210 kg bwt OUT - 19 Nov 2016 - 200 head @ 430 kg bwt 279 days weight gain = 220kg or 100% = 780g / day per head COSTS On arrival - Hay & Drenching = $10 per head Backgrounding charge = $1.50 per kg gained Figures ex GST

VALUE ADDING CENTRAL RANGELANDS BULLS IN - 20 Aug 2016 - 110 head @ 170 kg bwt OUT - 28 Jan 2016 - 110 head @ 275 kg bwt 161 days weight gain = 105kg or 62% = 650g / day per head COSTS On arrival - Hay & Drenching = $10 per head Backgrounding charge = $1.50 per kg gained Figures ex GST

MOB OF MATED PASTORAL CATTLE

Never be frightened of new ways of doing business. LAST WORDS Never be frightened of new ways of doing business. For more information on the North South Beef Alliance Contact: Craig Forsyth 0428 275 035 THANK YOU