Transcript SCRC FRDC Market Funding Workshop

MARKETING LEVY UPDATE
EWAN COLQUHOUN
RIDGE PARTNERS
2 AUG 2016
APFA MARKETING STRATEGY 2021
1. Educate Chain Partners
about Farming
2. Educate Governments
and Regulators
3. Collect and release
Market Intelligence
APFA WILL INVEST TO:
4. PROMOTE
AUSTRALIAN PRAWNS
1. Support and monitor “Love Australian Prawn’ campaign
2. Leverage promotion by partnering with other Australian aqua products
3. Undertake joint promotions with Australian beverage sector
APFA WILL DO WHAT FARMERS CAN NOT DO ALONE
Prawn Farms
Least
Influence
APFA
Switch Consumers to Farmed Prawns
Increase Prawn Price
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).
Increase Farm Sector Revenue
But, APFA has limited
influence on farm
profitability and ROI.
Increase Prawn Demand
Farms can directly
control their own ROI
and profit through
cost control and
product quality (e.g.
Most
Influence
Increase Prawn Sales
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
Most
Influence
Increase Farm Profitability
Increase Farm ROI
Least
Influence
3 STEPS TO MARKETING INVESTMENT
APFA
Marketing
Strategy
•
•
•
•
•
APFA Board
FRDC 2014.16
Delay due to
Funding required
Review Progress
- approval of concept
- Project 2015 APFA Conference update
- Marketing Strategy 2021 – now completed
- ~$150k for LAP + APFA Programs
Levy
Business
Plan
Levy
Management
Plan
3 STEPS TO MARKETING INVESTMENT
APFA
Marketing
Strategy
•
•
•
•
•
APFA Board
FRDC 2014.16
Delay due to
Funding required
Review Progress
- approval of concept
- Project 2015 APFA Conference update
- Marketing Strategy 2021 – now completed
- ~$150k for LAP + APFA Programs
Levy Design
Levy
Business
Plan
•
•
•
•
•
•
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
Levy
Management
Plan
3 STEPS TO MARKETING INVESTMENT
APFA
Marketing
Strategy
•
•
•
•
•
APFA Board
FRDC 2014.16
How will we invest
Funding required
Review Progress
- approval of concept
- Project 2015 APFA Conference update
- Marketing Strategy 2021 completed
- ~$150k for LAP + APFA Programs
Levy Design
Levy
Business
Plan
•
•
•
•
•
•
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
•
Levy
Management
Plan
•
•
•
Confirm resources at APFA / LAP to
manage the Marketing program
Mandatory 5 year review of Plan/Levy
Managing and spending the money
Output:
o Levy Business Plan to APFA/FRDC
o Levy Submission to APFA/FRDC
and DAWR (if compulsory)
NEXT 6 MONTHS
Aug-Sept
• 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
Oct-Nov
• 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
Dec-Jan
• 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
Feb
• 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