1. Ewan Colquhoun Ridge partners 2 Aug 2016
Marketing Levy Update
Ewan Colquhoun
Ridge partners
2 Aug 2016

2. APFA MARKETING strategy 2021
1. Educate Chain Partners about Farming
2. Educate Governments and Regulators
3. Collect and release Market Intelligence
4. PROMOTE AUSTRALIAN PRAWNS
APFA MARKETING strategy 2021
APFA WILL INVEST TO:
Support and monitor “Love Australian Prawn’ campaign
Leverage promotion by partnering with other Australian aqua products
Undertake joint promotions with Australian beverage sector

3. APFA will do what Farmers can not do alone
Prawn Farms
APFA
Least Influence
Most Influence
Switch Consumers to Farmed Prawns
APFA can directly influence prawn awareness and demand through generic (e.g. LAP) or category marketing and promotion. APFA R&D can also lower costs through the supply chain (RD&E).
But, APFA has limited influence on farm profitability and ROI.
Increase Prawn Demand
Increase Prawn Sales
Farms can directly control their own ROI and profit through cost control and product quality (e.g. RD&E levy).
But, farms have limited influence on prawn demand, or their chain partners due to lack of critical mass and lack of market power
Increase Prawn Price
Increase Farm Sector Revenue
Increase Farm Profitability
Increase Farm ROI
Most Influence
Least Influence

4. APFA Marketing Strategy
Levy Business Plan
Levy Management Plan
3 Steps to marketing investment
APFA Board - approval of concept
FRDC Project 2015 APFA Conference update
Delay due to - Marketing Strategy 2021 – now completed
Funding required - ~$150k for LAP + APFA Programs
Review Progress

5. APFA Marketing Strategy
Levy Business Plan
Levy Management Plan
3 Steps to marketing investment
APFA Board - approval of concept
FRDC Project 2015 APFA Conference update
Delay due to - Marketing Strategy 2021 – now completed
Funding required - ~$150k for LAP + APFA Programs
Review Progress
Levy Design
Consult farms, stakeholders, FRDC, DAWR - next 2 months
Assess Voluntary V Compulsory (Domestic ONLY)
Levy metrics – who pays, cap, frequency, rate, point, timing, etc
Piggyback on existing RD&E levy (lower costs), but no matching
DAWR / Minister Approval if compulsory
Authority to spend, accountability for spend, APFA governance
Levy Equity
Determine equitable levy rate + payment cap for large farms
Majority of farms + big 4 (Seafarm, PacReef, GCMA, Aussie Prawns) must approve

6. APFA Marketing Strategy
Levy Business Plan
Levy Management Plan
3 Steps to marketing investment
APFA Board - approval of concept
FRDC Project 2015 APFA Conference update
How will we invest - Marketing Strategy 2021 completed
Funding required - ~$150k for LAP + APFA Programs
Review Progress
Levy Design
Consult farms, stakeholders, FRDC, DAWR - next 2 months
Assess Voluntary V Compulsory (Domestic ONLY)
Levy metrics – who pays, cap, frequency, rate, point, timing, etc
Piggyback on existing RD&E levy (lower costs), but no matching
DAWR / Minister Approval if compulsory
Authority to spend, accountability for spend, APFA governance
Levy Equity
Determine equitable levy rate + payment cap for large farms
Majority of farms + big 4 (Seafarm, PacReef, GCMA, Aussie Prawns) must approve
Confirm resources at APFA / LAP to manage the Marketing program
Mandatory 5 year review of Plan/Levy
Managing and spending the money
Output:
Levy Business Plan to APFA/FRDC
Levy Submission to APFA/FRDC and DAWR (if compulsory)

7. Aug-Sept Oct-Nov Dec-Jan Feb Next 6 months
Confirm farm consultation program – farms, contacts, data,
Draft Levy Development Plan – consult APFA/FRDC/DAWR
Release media advice/adverts re proposed levy
Consult on site with all farms re levy options & preferences
Document all issues and options, positive and negative
Identify APFA / proponent capability to manage a levy
Aug-Sept
Document matters related to the DAWR 12 Principles:
intent of the levy; how funds will be used; unique caps, etc.
forecast returns/ROI, beneficiaries, management of funds
why alternate collection options are not attractive.
positive and negative responses from license holders
if/how design will address each concern, etc
Market failure and how levy is best way to resolve
Oct-Nov
Document when/how levy will be monitored
Document when/how levy reviewed every 5-10 years
Finalise Levy proposal - design, collection, and use of funds
Submit draft levy Business Plan to APFA / FRDC & DAWR
Prepare for Poll/Vote to approve if required
Dec-Jan
Conduct Poll / Vote
APFA / FRDC approval for compulsory or voluntary levy
Submission to DAWR Minister if for compulsory levy
Approval and levy begins July 2017
Feb