Cooperative Research Centre for an Internationally Competitive Pork Industry

1. Cooperative Research Centre for an Internationally Competitive Pork Industry Investing in Australia’s industrial, commercial and economic growth Dr Roger Campbell CEO Pork CRC

2. Pork CRC Update • Successfully funded November, 2004 • Pork CRC launched October 18, 2005 • Commonwealth agreement signed and funds available November, 2005

3. Core program areas • More reliable and consistent protein and energy supply • Herd feed conversion efficiency • Functional pork products • Education and training

4. Pork CRC evolution… Industry driven

5. Core Participants Supporting Participants Grainsearch Pty Ltd WAAPC – Pork Producers Committee Bartlett Grains Pty Ltd Australasian Pig Science Association Massey University, NZ

6. Pork CRC Management • Dr Roger Campbell (CEO) • Mr Michael Crowley (Finance and Business Manager) • Mr Khalil Jamahl (Office Manager) • Based at University of Adelaide, Roseworthy Campus

7. Pork CRC Ltd Board • Dr John Keniry (Chair) • Dr Robert van Barneveld (CHM) • Mr Enzo Allara (APL) • Mr Rod Hamann (APF) • Prof Andris Stelbovics (Murdoch) • Prof Shaun McColl (U of Adel.) • Mr Angus Davidson (NZPIB) • 2 x Specialist Directors

8. Pork CRC Structure Pork CRC Ltd Board Members • R&D Subcommittee • Audit Committee • Education Subcommittee • Commercialisation Subcommittee Chief Executive Officer Office Manager Finance and Business Manager Program Leaders Project Manager Subprogram Leaders

9. R&D Sub-Committee • Dr Roger Campbell (chair) • Dr Rob van Barneveld • Dr Rod Hamann • Dr Brian Luxford • Dr Mike Taverner • Professor Frank Dunshea • Dr Ian Johnson • Mr David Henman

10. Program Managers • Program1 – Dr Mike Taverner • Program 2 – Professor Frank Dunshea • Program 3 -David Henman • Program 4 –Dr Ian Johnson

11. Sub-program managers

12. $81.4 million in funding

13. Vision A Cooperative Research Centre to enhance the INTERNATIONAL COMPETITIVENESS of the Australian pork industry by providing and adopting NEW and NOVEL technologies that: • Reduce FEED COSTS; • Improve HERD FEED CONVERSION EFFICIENCY, and; • Enhance the capacity to COST-EFFECTIVELY produce HEALTHY PORK PRODUCTS targeted at niche markets in Australia and overseas

14. Core program areas • More reliable and consistent protein and energy supply • Herd feed conversion efficiency • Functional pork products • Education and training

15. Research Investment Process • Pork CRC Ltd is a company with clear corporate objectives • Not a public sector funding body • Outcomes must be achieved – research will be commissioned to achieve these outcomes as efficiently as possible

16. Program Funding

17. To reduce feed costs… • Dedicated feed grains (barley, triticale) • Local supply • Less variability in price and supply • Enhanced utilisation • Greater capacity to measure nutrient content • Wider choice of ingredients (legumes, co-products)

18. Subprogram 1a: Innovative grain production • Commercial quantities of cereals that can grow closer to pig producing regions, that have a high yield, cost-effective agronomy and acceptable nutritional characteristics for pigs. • Commercial quantities of pulses (peas, lupins, beans) that can grow closer to pig producing regions, that have a high yield and cost-effective agronomy.

19. Subprogram 1b: Quality assessment of feed ingredients • Adopt, implement, enhance and maintain NIRS calibrations for nutritional quality of cereals developed within the Premium Grains for Livestock Program. • A wider range of rapid and objective analytical methods for the nutritional quality of feed ingredients. • Processing and interventions to increase nutrient yield from target grains.

20. Subprogram 1c: Wider range of feed ingredients for use in pig diets • Identification and development of new and novel protein and energy sources based on co-products and/or traditional sources • Assessment of nutritional potential of candidate protein and energy sources • Implementation of non-traditional and alternative protein and energy production.

21. Program 1-More and better grains/enhancing nutrient availability

22. To improve herd feed conversion… • More control over feed intake • Increase metabolic efficiency • Improve health status • Raise reproductive efficiency • Enhance viability of breeding females

23. Subprogram 2a: Innovative products and strategies for the measurement of feed intake. • A method for the practical and continuous measurement of feed disappearance in groups (ie a pen of pigs at least daily). • A method for practical and continuous measurement of feed wastage within groups. • Novel methods for the measurement of individual feed intake within a group. • Prediction of disease onset through the application of feed intake measurements.

24. Subprogram 2b: Innovative products and strategies for the manipulation of feed intake. • Novel molecules (eg. cytokines) and feed ingredients (eg. grains, inherent plant compounds, plant extracts) that can be used to manipulate feed intake. • Elimination of post-weaning growth check and promotion of gut development through stimulation of feed intake. • Improved carcase quality through manipulation of feed intake in growing pigs.

25. Subprogram 2c: Alternative therapies, products or strategies to improve pig production efficiency and reduce mortality of all growth phases. • Nutritional, genetic, immunological and management solutions for the control and/or reduction of disease and mortality as an adjunct or alternative to existing medication programs in all growth phases. • Development of nutritional strategies and further enhancement of metabolic modifiers and their mode of application (eg. Paylean, pST) to improve lean tissue deposition. • Implement novel genetic and reproductive tools and technologies to enhance production efficiency.

26. Subprogram 2d: Extend and enhance the productive life of the breeding female through novel management and system design. • Nutritional, genetic and management strategies to improve the productive capacity of the gilt over her lifetime. • Intervention strategies to reduce seasonal infertility. • Practical system for the prediction of the time of ovulation.

27. Program-2 Improving HFC

28. Program 3 –Improved market outcomes

29. The Bottom Line • Reduce COP from $2.05 to $ 1.50 per kg carcass weight.

30. Relative business indicators

31. Comparative costs in USA dollars per kg carcass weight

32. HFC • Currently averages 4.2 on a carcass weight basis for Australia (APL Pig check 2004). • USA average closer to 3.7 • Rather scary when feed costs 27 cents/kg.

33. Causes? • Genetics? • Wastage? • Low energy diets? • Light selling weights? • Reproduction • Poor health • Tell me?

34. Shorter term technical targets and changes for Australia and their potential impacts.

35. Potential improvement in profit and flexibility

36. My R&D priorities for the Australian Industry (all linked with training/education)

37. Programs/outcomes continued

38. Chances of success

39. Performance indicators… • Reduction in on-farm cost of production from $2.05/kg carcase to $1.50/kg carcase (2004 currency values) • Capture of new niche markets for value added pork products by 2012

40. Can we get there?… $10/kg feed = $0.04/kg carcase 0.1 feed conversion = $0.04/kg carcase Program 1a,b,c Local supply ($0.12), more accurate diet formulation ($0.04), greater energy yield ($0.08), alternative ingredients ($0.12) $0.36 Program 2 a,b Reduced feed wastage ($0.06), strategic medication($0.04), better summer growth ($0.05), reduced autumn fat ($0.03), reduced weaning growth check ($0.05) $0.22 Program 2 c,d Reduced medication costs ($0.02), improved growth and feed conversion ($0.15), increased lifetime productivity ($0.07), reduced seasonal infertility ($0.05), measurement of ovulation time ($0.03) $0.32

41. QAF - Realisation of outcomes… • 50% increase in production • 500% increase in Japanese exports • 10% reduction in imports • 500 extra regional jobs

42. Industrial, Commercial and Economic Benefits of the Pork CRC

43. Industrial • Increased exports • Increased domestic supply • Reduced impact from drought, exchange rate fluctuations and imports • Industry expansion • Job creation • Improved return on existing investment • Strengthened rural sector

44. Comparative growth…

45. Growth potential of key Asian pork markets (2004-2012) Australia’s 2003 exports = 62,000t worth $221m (FAPRI, 2003)

46. Commercial • Product/process focussed R&D programme • High commercial relevance • Applications extend beyond the pork industry • Plant varieties • Measurement of ovulation • Measurement of feed intake • Delivery of functional nutrients

47. Economic • Conservative estimate of economic benefit • $AUD235 million per annum • Additional economic benefits: • Grains industry • Other livestock industries • Commercialisation of products • Health/nutrition sectors

48. Key strengths… • Most consumed meat in the world • Capacity for growth • Bid based on industry need • Cohesive industry • Competitors collaborating • Contributes to three national research priorities • Component of industry restructure plan • Significant investment in the CRC ($11.2 million) at a time of poor returns

49. Conclusions • Pork CRC operational and ready to deliver • Strong support from government and industry • Outcomes will have a significant impact on the competitiveness of the Australian pork industry

50. Supporting Information(if required)