1. Future ICAR For Purpose of Discussion on the Future Structure for ICAR. 10th February 2014 v9.

2. 2 Vision on the changing environment Trends seem to be closer than ever before Social, political, environment, technology and economic trends ► ► The world population and the level of income increase, especially in Asia and Africa ► ► Increasing demand for protein and energy and increasing pressure on resources like land, gas, oil, minerals and water ► ► Scarcity of resources will be an important driver for the economy. ► ► Society is increasingly paying attention to the environment, climate and water use. ► ► Global warming is a major threat and ruminants are seen by many as a major source of green house gases. ► ► Technologies like genomic selection, DNA technologies, biotechnology, breeding, sensor technology, internet, cloud technology and the growing amount of data and its sources will develop further and change customer desires ► ► Globalization will continue and the influence of the BRICs will increase further

3. 3 Vision on the changing environment SOCIETY / WORLD POPULATION / RESOURCES Protein Water Energy 9 BILLION PEOPLE

4. 4 Vision on the changing market ► GS development will continue to have a big impact, especially in combination with other technologies ► Enormous increase of the amount of data and its sources. The farmer will be the linking pin to data providing. ► Increase of the influence of integrators on the (type of) farm products ► The trend of forward and backward chain integration on the farm will continue ► Increasing pressure of society concerning environment and animal welfare ‘license to operate’ ► Scale. Growth of farms. New challenges for farmers concerning automation, knowledge and employee management ► Gov’t support will continue in those activities which serve the interests of society in the longer term. ► Gov’t support subsidy for day-to-day services of immediate value to farmers will end.

5. 5 Vision on the changing environment Vision on the changing environment TECHNOLOGY

6. 6 Vision on the changing environment Vision on the changing environment DAIRY AND BEEF CHAIN ► Increasing influence of integrators ► Chain integration ► Growth of farms ► Growth of niche products

7. 7 Livestock Industry Supply Chain (cash flow)

8. 8 Business drivers for primary producers ► Long-term profitability/ sustainability ► Ease of management (smart systems….) ► Resource efficient (feed, energy, water, etc) ► Low emission of GHG, minerals, etc ► High animal welfare ► Good working environment ► Safe production and products; license to produce

9. 9 Business drivers for suppliers to primary producers ► Innovation ► Scale to reduce (innovation) costs ► Efficient processes ► Long term profitability/ Sustainability

10. 10 Effect of vision / business drivers on current organisation structure ► Breed societies will change their activities ► Breeding industry, including AI, will change due to genomics ► Integration of AI, recording, data processing, genetic evaluation … will move on.. and will be across national borders… ► Herd / cattle improvement will be part of the chain ► Data processing centers and developments in the cloud…. ► Growing need for information infrastructure to be separated more from commercial activities such as AI. ► Cooperative structure will remain ► Non cooperative business will enter herd recording/ cattle improvement ► License to produce will become key

11. 11 Strategic Plan ICAR

12. 12 ICAR Mission Statement Mission of ICAR is to be the leading global provider of Guidelines, Standards and Certification for animal identification, animal recording and animal evaluation. ICAR wants to improve the profitability, and sustainability of farm animal (Bovine, Ovine, Caprine, …) production by: ► ► Establishing and maintaining guidelines and standards for best practice in all aspects of animal identification and recording. ► ► Certifying equipment, and processes used in animal identification, recording and genetic evaluations. ► ► Stimulating and leading: continuous improvement, innovation, research, knowledge development, and knowledge exchange. ► ► Providing services essential to achieving international collaboration in key aspects of animal recording and animal breeding.

13. 13 SWOT analysis for ICAR Strengths : Commitment, skills, knowledge of volunteers & staff Financially stable Reliable brand Involved members Innovative new services Value for money Strong forum to stimulate research sharing results through international cooperation Threats : Hi-tech farming: farmers will quit recording organisations Large companies will offer total systems Low prices for dairy and / or beef resulting in short term cost cutting Other stronger international organisations with overlapping activities may squeeze ICAR Breakdown of good relationships to EAAP Opportunities : Developments in precision farming More recording systems creating higher need for certification Increased attention for food safety Increased value of phenotypes in genomic business Increased value of production chain resulting in stronger alignment to other word wide umbrella organisations Technologies for recording, analysis and information Weaknesses : Small annual budget for investments Lots of activities with little integration Lack of recognition in field of animal farming Work of groups depends upon enthusiasm of chairperson and time constraints of volunteers Small staff with increasing work pressure

14. 14 Challenges for ICAR….. ► Requirements Integration will pull recording ► Easy herd management will pull recording ► License to produce, what is role ICAR in this ► Data exchange/ new traits will become hot ► Need for Standards / certification (data, data collection systems, labs, data collection processes, genetic values, license to produce) will become key ► Members of ICAR will change. ICAR members in 2025 will not be the ones we have now ► How will ICAR generate funds for investments in the future ► Variety in the world on development stage of the livestock industry. How to deal with this

15. 15 Farms Database (s) Animals Observations / Measurements Samples Laboratories Sampling Device(s) Measuring Device(s) Farmer / Technician Health / Disease / Welfare Supply chain /Quality Assurance Farm Management Breeding Data Information Scope of Future ICAR

16. 16 Strategic directions ICAR till 2018 ► Promotion and visibility of ICAR ► Establish ICAR as the international authority on Guidelines, and Standards for certified best practise in farm animal (Bovine, Ovine, Caprine, …) identification, and recording. ► Establish ICAR as the leading forum for innovation in the use of animal records for improving animal breeding, farm management, the food supply chain and animal health and welfare. ► Growth ► Grow membership in ICAR to achieve full coverage of all major animal (bovine, ovine, caprine,..) production regions and countries of the world. ► Grow the funds available for ICAR to invest into the discovery and development of new services to €100,000 (?) per year by 2016. ► Generate sufficient funds to provide €100,000 (?) per year to support the activities of ICAR’s Groups by 2016. ► Grow the range and uptake of animal recording services which ICAR (and Interbull) are uniquely able to provide for the benefit of members and farmers. ICAR strategy 2013

17. 17 Strategic directions ICAR till 2018 ► ICAR Organisation ► Structure ICAR and Service ICAR (including Interbull), to efficiently deliver the Strategic Plan. ► Develop the communications between the ICAR Board, ICAR Executive Team and ICAR Groups to world best-practice. ► Provide the ICAR Groups with the support they need to maintain the enthusiasm and commitment needed to rapidly and efficiently achieve their goals. ► Manage risks ICAR strategy 2013

18. 18 Interbull ICAR Service ICAR 2. Standards & Guidelines 3. Evaluation, Testing & Certification (Services) 1. Information sharing and continuous improvement 4. Research & Innovation Members Service Users Membership Agreement Service Agreement (s)

19. 19 Functions FunctionICARsICARInterbullGroups Information sharing and continuous improvement ✔ ✔ ✔ Standards & Guidelines ✔ ✔ ✔ Evaluation, Testing & Certification (Services) ✔✔ ✔ Research & Innovation ✔ ✔ ✔

20. 20 Structure & Functions for Future Element of Structure Role and Function ICAR Parent Body, Accountable to General Assembly, Non-Profit, Open, Transparent, Facilitates Flow of Information, Part of International Community, Decisions for Industry & Public Good, Membership Funded, Invests Profits in best long term interests of future animal recording. Technical work conducted by innovative, practical and forward looking Groups of experts under direction of ICAR. sICAR Wholly owned subsidiary of ICAR, provides services valued by ICAR members, generates surpluses which ICAR to invests, responds to customer needs, operates internationally, is very efficient, and very customer focused. Service innovation and development (new and enhanced) comes from ICAR Groups. Interbull Special case of sICAR for dairy genetic evaluations in which an ICAR Group has been delegated to develop and operate specific services. This is a special case and ICAR strategy is to operate all new services through sICAR. Groups Enthusiastic experts working on voluntary (without ICAR funding) basis in well defined specialist area. Develop guidelines, facilitate communication, identify and support services and promote innovation.

21. 21 ICAR General Assembly ICAR Board sICAR Board (Services) Recording Device Testing Identification Device Testing Certificate of Quality Interbeef… Sub- Committees Interbull Dairy Genetic Evaluation Services … Working Groups Task Force(s) Structure for Future ICAR

22. 22 ResourceICARsICARInterbullGroups Leadership President & Board Chief Executive Group Chairpersons Board of sICAR Chief Executive Chair of Steering Committee Steering Committee SLU Interbull Centre Manager Chairperson Group Members Chief Executive Management Executive Team SLU Interbull Centre Manager Chairperson Groups Coordinator (ET) Funding Member Fees Subsidiary Profits Retained Surpluses Investments from ICAR Service User Investments Retained Profits Service Fees Investment from Service Users Retained Profits, Service Fees Employers ICAR / sICAR Research Grants Administration (finances, human resources, meetings, bookings) Executive Team SLU Interbull Centre Team Chairperson Executive Team Technical Expertise Groups Executive Team Service Users Service Providers SLU Interbull Centre Team Service Users Research collaborators Members Research collaborators Service Providers Sales & Marketing Executive Team SLU Interbull Centre TeamGroup Members Innovation Groups ICAR Board Executive Team Members Groups Executive Team Service Users Service Providers Steering Committee Technical Committee Advisory Committee SLU Interbull Centre Team Service Users Group Members Research collaborators

23. 23 Structure Model ICAR Board sICAR Board Interbull SC Policy Decisions Chief Executive (Leader, Team Leader, Representative, Promoter) Executive Team (Membership, Legal, Finances, Groups, Services, Publications, Marketing) SLU Interbull Centre Team for Interbull Service Providers (to sICAR and for specialist expertise) Operations Groups Coordinator Groups Group Members Technical

24. 24 Recommendations 1. Main priorities for immediate future of ICAR are: promotion & visibility, growth, and creation of an effective organisation for the future (as outlined on slides 16 and 17 in this report). 2. The roles of ICAR Board, Service ICAR Board and ICAR Chief Executive are as identified by the Future ICAR strategy group (refer to workbook ICAR Business Processes v7). 3. Establish routine and regular Board meetings for Service ICAR independently of the ICAR Board meetings. 4. Develop a strong, effective and efficient ICAR Executive Team under leadership of ICAR Chief Executive reporting to ICAR Board and Board of Service ICAR. 5. Appoint directors to the Board of Service ICAR with experience, knowledge and enthusiasm for the services being provided through Service ICAR. 6. Create position of ICAR Chief Executive with role as defined, to replace role of Secretary General (refer to workbook ICAR Business Processes v7, and draft Job Description v5). Recruit and appoint suitable person to position of ICAR Chief Executive. 7. ICAR Executive Team to review business processes in order to efficiently deliver on ICAR strategy and to operate according to world-best practice while effectively exploiting technology developments.

25. 25 Next Steps (draft for discussion with ICAR Board) in roll-out plan ► ICAR Board and Secretary General review findings, and identify any other issues that need to be dealt with. Agree team and timetable for examining and reporting on other issues. ► ICAR Board endorses “Future ICAR” report and decides future actions. ► ICAR staff and membership notified of decisions and background to them. ► ICAR Board appoints sub-committee to recruit and recommend appointment of ICAR Chief Executive. ► ICAR Chief Executive establishes Executive Team.

26. ICAR is preparing for the future!