 So, central supply and demand, that was the suggested title for my talk today. So, I'll talk about sustainability in the agricultural supply chain from a sustainable agricultural initiative perspective. I'll try to explain what SAI is and what it does, outline who some of our members are and why they are current members and just talk a little bit about some of the activities and also the global links that we enjoy through SAI. I'll then switch gears and talk about English enterprises and talk about why sustainability is important to our organisation. So, the Sustainable Agriculture Initiative in Australia, it's really the Australian chapter of an international group that was founded in Europe about 10 years ago. The overall aim of this organisation is to be a two-way gateway for the Australian food and beverage sector in relation to sustainable agriculture. We've got three key areas of focus, the first one being about facilitating learning among members and that really is one of the most valuable aspects of membership. The second is to promote and implement sustainability practices among our members and other stakeholders. So, trying to influence our direct members and also their supply chains. And the third is to build partnerships and alliances for greater impact across the entire supply chain. So, we have a unique membership along the supply chain in that we've got input suppliers, we've got agricultural producers, we've got processes and we also have retailers, which the European platforms now also invite retailers to be part of their group. We see that this is a unique point of difference because we've got people around the table who present each of those different segments and that's not something that you commonly see here in Australia. It's very interesting as a processor, for example, Lingamson has a large processing footprint to talk directly to retailers in the context of our inputs, which are also their inputs in many ways as well. So SAI, really the overall aim, I think, of sustainability in agriculture is really to meet the increasing food demand globally. So that's really where SAI sees itself fitting in. And we're also a reference group on productive and sustainable practices in Australia. So we operate as a bit of a clearinghouse for information in that regard. And we're also interested in communicating signals along the supply chain to achieve better outcomes in a quicker way and that are more long-lasting. And as I mentioned, we're engaged here in Australia and also internationally. These are some of the sustainable agriculture principles. So these are internationally agreed principles that we operate to. So it's the typical sustainability, the three bases of sustainability, the environmental, the social and the economic. So land and soil being foundation run, water, ecosystem, health, air, energy, climate change, and also chemical use and inputs, being the key ones in the environmental area. There's an increasing focus on social sustainability. It's a fairly new discipline and we're working with new databases and new metrics in social sustainability in terms of identifying and measuring different social impacts. Working conditions is a key part of that. And that's been a key area of focus actually in the last 18 months for many of our members. Training and development, economy, animal welfare and health and safety are also the key aspects of the social sphere that fit into the principles and the economic, which is around safety, quality, traceability. There's been quite a bit of talk about traceability in earlier sessions today. Financial stability, supply chain efficiency, again a hot topic this morning, and risk management. Some of the key common issues that we see across our members in SAI are around people, whether that's attracting and retaining the right sort of people into your organisation, attracting those skilled people, developing those skilled people or whether it's the way that people are treated in terms of their employment. Community expectations is something that continues to grow and in that you can include governments and customers as well as consumers and communities. Standards and certification, there's a plethora of standards and certification systems and constructs around the world and there are many around sustainability and they are growing by the day. So how do you deal with that? How do you pick which standard or certification scheme that you're going to try and align yourself with? Is there any hope of alignment or harmonisation which some of us dream of? That's a big issue for many of our members, just dealing with the sometimes overwhelming burden of standards and certification schemes. Soils, water and climate, they're sort of more of the fundamental environmental issues that face all of our members. So some of our current activities fit into these four areas. So we're undertaking a number of collaborative research projects this year on the back of several that were conducted successfully last year. These tend to be in emerging areas that are of interest to specific members. So they're not something that as an individual organisation you would necessarily get the go ahead to do. But there may be two or three members sitting around an SAI table meeting saying I'm really concerned about this or I really think this is going to be an issue for us in 12 to 18 months time. Not getting any traction internally. Let's maybe have a look at it as a collaborative project. So it can be a really good vehicle for getting a lot of new information across a group of different parts of the supply chain with that. A single organisation carrying the burden and risk of that. We undertake site visits and case studies of member initiatives and that's a great way for peer learning. I was mentioning to Jane over lunch that later this year we're going to see Tassel's operations in Tasmania. And I think it's be safe to say we're all quite excited about that. It's almost like a school camp excursion type of experience because we get to fly to Hobart, go on a boat, all of those sorts of things. But that's going to be incredibly interesting to see how the seafood industry is dealing with sustainability. We also have a year conductor self-assessment against those principles that were in that previous slide and we use that as a way of gauging our own performance and also of trying to get some sort of alignment and understanding as to what other organisations are doing and how they view themselves in terms of assessing assessment against some of those key principles. And as I mentioned we have the international linkage with the SAI platform in Europe. So just on some of those global links we find this a huge value so this is just a screenshot of a couple of different initiatives that are underway under the auspices of the international group. So looking at farm sustainability assessment or FSA that's something a few of our members have already trialled or piloted and tested with some of their farmers but that's potentially quite a good way of streamlining or harmonising if you like some of those standards and certification schemes that we're currently involved in collectively. So that's an area of interest for the coming 12 months as to how that system goes, how customers and buyers use that. Looking at obviously the global climate change discussions and the outcomes of those. The sustainable development goals seeing where we can get some alignment there and also looking at water stewardship. So we find that the link internationally is a immense benefit to our members. So I'll just change back now. So talking about Ingham's as a member of SII, we've been a member of SII for about two or three years and we're a poultry company, we're one of the largest in Australia and we have gained a lot from being a member of SII and I've heard people comment today in some of the breaks that one of the best things about being here is the networking opportunity that it provides you. So often our sustainable agriculture initiative meetings are really a great networking session and I guess the relationships that have developed in the breaks or during the discussions or on field trips have been of immeasurable value I think to many of us. Many sustainability professionals are loan operators if you like. They tend to be or quite often can be the only one of their kind in an organisation. They don't tend to have a lot of resources or big departments. So being able to bounce ideas off others in similar situations is great. So what does sustainability mean to a food company like Ingham's? First of all I have to tell you a little bit about Ingham's. So Ingham's has been around for 98 years. It's been a family-owned company for most of that time and we've been owned by Private Equity for about three years now. We employ about 9000 people that's throughout Australia and also in the North Ireland of New Zealand and we're a fully integrated poultry and stock feed business. So we contract out the growing of the birds. We purchase grain and basically everything in between we do ourselves. I've just got a couple of pictures of chooks there which is obligatory when you work for Ingham's. So that just shows you the trajectory that the industry in Australia has been on over the last 40 years or so. So in the 70's it took 101 days to grow a bird to full size and to do that we needed to feed it with 8 kilos of grain-based feed. That has been shortened significantly through selective breeding and improved nutrition to only 32 days and 2 kilos of grain. So you can see that as an industry and as a producer of meat protein it's a very efficient business model. So some of our key inputs and risks include grain land, labour and water. So we see those as really our four big sustainability risks if you like in terms of inputs. So things that threaten those climate, stakeholder expectations availability, quality and cost. So if you know that in terms of stakeholder expectations in particular that can lead you down a pathway that doesn't necessarily improve any particular outcome and really just satisfies a perception so that can be quite difficult to deal with. There isn't a straight answer for that but those are some of the key threats that face our organisation. So when you look at it from a farming perspective, our farmers are poultry growers. So key input for them is the use of grain which is obviously subject to climate and other impacts. Grain itself has a significant cost in ecological footprint and there are also soil issues as I said with that as Neil was outlining. So from an ecological perspective in terms of Ingham's overall footprint grain actually is accountable for the vast majority of it. Our poultry growers, our farmers need to contend with welfare standards and that's a top of mind issue not only for consumers but also for ourselves. It's one of the things that we do pride ourselves on and it's a very important part of being part of the animal industry is that you take care of the animals that you're working with. The whole issue of welfare, free range, RSPCA all of those sorts of things is very associated with the concept or the construct of natural and sustainable food that comes through very clearly with our consumers. So while we don't believe there are any issues with that it can sometimes be a task to manage the perceptions there. So in terms of risk management which is really what business sustainability is all about we need to ensure that our suppliers can manage shocks such as drought. We need to develop and really strengthen and nurture strong partnerships with our key suppliers and we also need to invest sometimes in quite new and innovative areas. If we look at water water being one of our other key inputs and also something that is quite readily threatened so water is essential to every aspect of our operation. Whether we're growing a bird in a shed and that bird needs to drink, whether we're producing feed you need steam to pelletise the grains or whether we're processing in an abattoir we completely rely on water we couldn't do anything without it water is obviously very subject in this country particularly to climate impacts and we know that globally there will be quite a big shortfall between water demand and water availability so it's clear that something needs to be done about water so one of those responses is to manage it better, reduce water use efficiency and do all of those things while you're maintaining the highest quality standards possible. We also need to go a little bit further than that as a large water user and actually understand the impact that we have as an operator on our catchment the catchment where we source our water and the catchment where we discharge our waste and the catchment where we operate and our community lives with people who work for us live and we also need to understand how that impacts upon us so that reduces our risk in terms of improved understanding of what the issues actually are so we've adopted a water stewardship approach which is a new way it's a new way of doing things and it's a new way of managing a key input resource and risk like water we've used the international water stewardship standard and that has helped us to demonstrate that our use of water is fair in simple terms often if you're a large water user you're criticised for just for that very fact and people don't take into account that you could be extremely efficient with it you could be an incredibly good manager of it but if you're using a lot of it the perception is where you're wasting it and you shouldn't have access to that if I can't if I'm being restricted in terms of my water use from a community perspective so using a water stewardship approach helps with that it also helps to demonstrate to water regulators that we are deserving of our allocation and adopting that approach because of that increased understanding of the catchment constraints or catchment issues also reduces the risk of continued supply which obviously without water you can't do business so it's potentially a big business interrupter so one of the ways that we've managed water risk is through those new partnerships and also through some of that innovative investment that I mentioned previously so at two of our largest processing sites in Australia we've constructed and commissioned advanced water treatment plants which means that we reduce our water use by 70% so we take the water that we use in processing and we put it through a series of treatment plants including advanced treatment which is filtration, reverse osmosis chlorination and UV so that we can use that water back through the process so that's been a step change for us it was a significant financial investment that hadn't been done before in the poultry industry and that was in response to some of those concerns around water and around the survival of our business particularly during the last drought the viability of our operations was under threat so in doing that we've not just done that we've looked at water use in every area so now that we're producing our own water in a sense, we need to make sure that we're still being as efficient with it as we possibly can be so the systems that we have they're fit for purpose, we have multi-barriers we've got six barriers at that final advanced stage, we've got online monitoring so we're very sure of the quality of the water because obviously the last thing we want to do is to be secure in our water supply and contaminating our product so the way that we've built and designed the systems, they fail safe so sustainability at Ingrams has become increasingly important over the years and I see four clear phases within the organisation starting with the environmental management approach in the 80s and really that went through to the early 2000s where it was all about reducing risk through managing compliance risk essentially reducing or managing utility use trying to control some of those semi-controllable costs so very much a traditional environmental management system type of approach that then grew into looking at environmental sustainability so with increasing, that increasing understanding of things like water for example so we developed a sustainability strategy which was integrated with our existing environmental management system we were one of the first companies to do a comprehensive carbon footprint which we learnt a lot from we built the advanced water treatment plants, we undertook quite a lot of new types of work to move into that sustainability area we then had about a five year period of implementing that and taking that to the next stage in terms of seeking certification against the international water stewardship standard for example and developing targets particularly around energy and water use that has now morphed into what we call business sustainability so we've got four key areas now which is business risk management so that's looking at strategic risks as well as operational and not sustainability broadly so social, economic and environmental not just environmental water stewardship so we've shifted our focus from water use efficiency or management into stewardship you still need to manage your environment and comply so that's still in there environmental management is still one of the key pillars and also ethical sourcing and corporate social responsibility and that's largely the response to our large workforce and the need to to manage that but also the I guess increasing focus particularly in recent times on labour practices within the food industry in this country so sustainable supply to meet demand so what's the link between supply and demand and sustainability well if you're not supplying something in a sustainable way you're not going to meet the demand because you won't be in business that's basically it so as I say there are some very common themes along the supply chain particularly around climate, water, soils and increasingly labour sustainable risk management well sustainable management is really about risk management sustainability is about making sure that your business is around for the long term not just that the environment is protected one of the key points I wanted to leave you with is about collaboration and that's been really one of the key benefits I mentioned earlier about SAI is that if you can work with others you can do great things and all of the other things there I think speak for themselves but I think it's the collaboration and that connectivity within the supply chain that is going to move forward thank you very much