 I thought today I would give you an impression of Norco as it is today, then talk a little bit about our experiences in China and then sort of try to wrap it up about, we're hearing a lot about corporate investment family farms, but talk through some of those issues that really mean if we wish to actually take those opportunities forward into Asia that we can do that with additional milk suppliers. So to give you a sense of Norco, Norco is one of the last bastions in the cooperative model where we still have one member, one vote, which started in 1895. So it's a traditional cooperative and it has its own set of challenges, but it works for us today. And we're a little bit different as a cooperative in the sense that we don't have to necessarily worry about our shareholders, they are our owners and therefore they are our milk suppliers. So we worry about what we call total farm gate returns and creating stable milk prices. And one of the challenges that we've always put, and I've put the pie chart up there around our business mix, is my experience in the industry, which I've been around for some time now, has actually shown us that the challenges in the North that we actually face is about maintaining a relatively stable milk price and a never increasing milk price to keep up with the pace of inflation. And so over a period of time we've developed this model where 70% of our business is milk related either through sales of fresh milk or processing of ice cream or manufacturing of ice cream. And the other is actually created from a diverse customer base from the rural retailing business that we operate, which is not just dairy. Dairy actually only operates about, I think it's around 12% of that business. And I had to do a little promo here, but just to give you a sense of the brands, brands are incredibly important to all our businesses. And obviously we also have some great grand awards that actually give us some great leverage into the China market. So let's start talking about China. And one of the things that I think I've just showed you some brands and one of the challenges that we've all found with China and our very first experience of putting fresh milk into China was the fact that our intellectual property on our brands and the capacity for someone to counterfeit that product is very real. But there's some very innovative solutions that our Australian friends are actually creating. And if you actually think about this piece, there's a barcode on that app that actually is individual to that bottle of milk and can be tracked via an app, a download of an app in China. And the customer can scan it back to our system at Norco, which will tell you exactly how old that bottle of milk is, where it comes from. And as soon as the milk hits its use by date, that code will no longer work, so they can't actually activate the code. So there's some very clever innovative ways and that's just one example that I would actually thought I would actually talk you through. So the ice cream business is also really interesting for us. And so one of the things that we're really good at Norco is that and the industry has moved to this. Many of us have actually created sectors of the dairy sector that we're actually good in. Norco is very good at actually manufacturing an ice cream. We learnt that from companies like Baskin Robbins that come out of the America in the 80s and formed joint ventures with us. Whilst that joint venture may no longer exist, we learnt to actually make an ice cream and be very good at it. So we've made ice creams for companies like Baskin Robbins, Streets, Gina Lever and we now do a lot with the retail sector in Australia. So in Australia, we don't actually manufacture our own brand of ice cream. And that was driven by the fact that some time ago we realised that the ice cream segment in Australia, especially the premium segment that actually had the better margins, was so small that the really, the, once the margins were larger, the cost of manufacturing small runs was actually problematic for us. So we exited those brands in around 2006. One of the interesting pieces from China's perspective is that those brands now are actually seen to be of great interest to them. And it gives us, and it enters a new world for us in the sense that developing a brand not only nationally, but globally becomes a real opportunity because the market's much bigger. And one of the challenges here is to give the Chinese what they're actually looking for, and I say, and I shouldn't say Chinese, it's just the Asian community, that local fresh feeling about our products and the provenance story behind it. One of the challenges, and just going back to Fresh Milk for a moment, one of the challenges that we found with the Fresh Milk market was, and I think this gets back to a lot of about our culture and the Asian experience was that many people in China actually think that fresh, UHC milk is fresh. So it's become very confusing for them around how do we market a product, you say yours is fresh, but we say ours is fresh. And there was a great confusion around that. So we've been slowly working around that. And there, and one of the problems that transposed when we actually talked about fresh product, the premiums that were perceived in the market were actually quite high. But one of the challenges that we now face is that the market in China has also learned how to get around those high premiums. So lots of people think someone said $20 a litre for milk, came on milk before. Well, my first question is, how many litres do they sell? Because if you sell two, it doesn't make you rich. And so one of the challenges that we've actually faced is, we'll see you can see fresh milk in China on a shelf for somewhere between $8 and $11, depending on where it is. It's about making sure you sell as much of that as possible on the shelf. And the consumer not actually trying to get it when they're used by date is getting closer to the end. So there's plenty of challenges on that price sensitivity. And the Asian community is very, very clever around that. So we found that working with the distributors and the retailers in China on educating the market is really, really quite necessary. So it means that from our perspective, making sure the retailers or the people selling their product don't necessarily give that product away or discount it when it gets close to the end. If you want to maintain that premium, it certainly needs to be that marking edge needs to be taken through and supported through the system. But I think that the other challenge there is it educating ourselves. And I think this is, it's like a marriage and a development of a new relationship. We both, the Asian and the Australian people, are trying to figure out where we fit together and how we can actually work relationships, racing in and trying to do a deal in a week in a month in six months just doesn't work. There needs to be plenty of thought process around that. And one of the challenges that we actually talk about is the dynamics of the product that we actually sell. So in Australia, we've actually, and we've actually certainly got some products that we think and capabilities that we think is great, but just things like portion size, a 500 mil tub, I showed you a moment ago a, probably flip back to that, a 500 mil tub. Now that might seem like a really nice size in Australia and that's probably the largest growing category in Australia. But for Chinese, that's too big. Can't get in their fridge. They like to eat it on the way home. So a whole set of challenges around that piece. So the next piece I wanted to talk about was the distinct opportunities that we actually have. I'm just going back to that piece around. There was the capability, it's not only the capability, but it's about the fascination with this Australian provenance story and the local brand. So now whether it's a Norco product or a Vega product or a Marigoldian product, we need to be able to make sure that we can formulate a product that actually is suitable for their market. So you may actually very well have a Norco product and it may be a native product. It may have lights in it or it may have green tea. But making sure that product is branded Norco as gives us one opportunity. But the second opportunity to that is that then making sure that the product has another style of product actually has the opportunity of their own styles of chase their own style. And we think that's actually the larger opportunity in the longer term. The challenge for us is to actually create relationships with retailers and hit that segment really hard with new relationships and fine tune those relationships while we actually develop that, the tastes and the profiles that they actually want around that product. And the interesting piece is cracking the market is really interesting. We do have those light bulbs moments in the event that how do we actually supply the market when it actually takes off? Because you've got to think about in our part of the world where we have a manufacturing ice cream business in Lismore. It's running at almost full capacity. The Australian market's actually almost taken it up. So we could double the size of that factory overnight by just one major customer in China. So there isn't a level of overwhelming this around how do we access capital in the short term in the event that that actually takes off. So we haven't taken our eye off the ball on that. But and this gets back to if we need to think about portion size, flavours, styles of product. That brings in the opportunity for new technology and new entry points in the marketplace. So we are certainly communicating with our members and our bankers in the sense that there is plenty of opportunity for investment with the right partner and we're certainly working on a lot of those opportunities. But one of the the challenges and I'm talking predominantly now about ice cream, but one of the challenges that we actually have as a positive in our part of the world, most ice cream in Australia is manufactured between the months of July and January. So a facility in manufacturing ice cream may very well have a spare capacity between February and June, which actually fits with the Northern Hemisphere summer. So there is so to some degree, our productivity can improve dramatically by just accessing a market and a medium size. So something of interest and certainly of value to our business and our members. But one of the pieces that I think the Australian industry and I say this cautiously, I think the Australian industry in agriculture suffers is the rest of the world hears about our volatility in our climatic conditions. They hear about the floods and they hear about the droughts and Dorothy and McKellis said it really, really well. And so one of the challenges that we've actually had in our business is to explain to our customers why our milk price is actually of higher value and therefore they pay a higher ingredient price. But with that comes consistency in supply. We are not a seasonal commodity player. We do not actually necessarily offer our customers a low spring price for a product. We actually go on with a price that is actually at the market rates that we're actually selling and buying from our farmers and knowing for a while that we actually have a consistency of supply right through the year. So we don't have a dramatically in our business, we do not have a dramatic downturn in our milk in the autumn period like other processes. And that's a challenge for us to actually explain that and actually get them to understand it. Certainly once our Asian friends have been to Australia they fully understand the process. And we've had great success in that work with the Japanese market and now the Chinese market. So a geographic spread and how we explain this if you think about milk as far as other side of King Arroy which is in Queensland down to as far as just out of Sydney is around a 1400 kilometre distance of milk. Now it's unusual for that area in size of area to actually have anyone event that is actually significant to either area. For example, the floods I think they had in Queensland some years ago back in 2011, I think it was, they didn't affect our southern supply. So that gives us some de-risking perspective on our milk business which gives us reliability. And we really do think that the whole reliability piece is the key for us in explaining the market. So the challenge then is I've said that we've actually got some great brands, we've got some great interest, we've developed a capacity. Then if you looked at the data that we're showing in Australia is where's the milk going to come from? We know that what's driven some of the changing arrangements from the retail sector in Australia with longer terms is the very fair factor that Australia is actually going to be more focused on exporting and seeking premium markets than actually the domestic market. So we've actually put a lot of energy into our farm sector and the reason for diversity in our business is to protect our farmers from the volatility of milk prices. So if you looked and I should have actually, and I thought about this later, graph would have been great, but our milk price variability in the last five to six years has been no more than three to 4%. And in fact, it's actually been rising. So that's actually driven our farm growth. I think in my view, the industry's changed. If you actually look back in the 90s and early 2000s, if you drop the milk price, you've got more milk. Today, if you drop the milk price, you'll get less milk. It's just the way the farming sector has changed its behavior. We're interested enough, and I call it the lifejacket moment. We've had 13 startups in our business, mostly smaller farms, starting up. But just like I started with 60 cows, milking over 400 cows, you actually grow with your time. So we're actually now putting the lifejacket around these smaller farms, actually trying to help them start their businesses and grow it and grow it with us. So yes, we've had some corporate farms actually show some interest and actually get involved with Norco, but we're also seeing a larger proportion of smaller farms start up and investing in agriculture. And the reason I say, and I usually call them the younger farmers, but some of them were in their 50s, but when you get new farmers and you, even if it's corporate farms, when you get new people into your business, they bring new ideas and they put pressure on the current farmers to actually change their ways. So, and I think that's really important that my caution about our business model and our pricing arrangement is that people get comfortable with it and won't actually change it and therefore become uncompetitive in the longer term. So we really do certainly encourage our farmers to think about increasing their investment on farm, not only from productivities, from a labor perspective, but a genetic, whether that's grass or a cow. And we certainly confident, we have, also I said, we've got 13 farms, we have about another seven or eight farms that are actually in the wings in bringing on milk supply. So we do also, most people think cooperatives are free and easy and you can just come in and start whenever you want. We very much control how much milk we bring into our business to manage our profit levels. So one of the challenges, as I said earlier, was about remaining cost competitive. And so the challenge for us here is in collaboration with Dairy Australia, we were very supportive of the Focus Farm Initiative from Dairy Australia. It was a rebuild of, in my view, what went on a number of years ago, where farmers got together every so often and actually looked at their business and pulled it apart. This is much more a coordinated approach, professional approach, and many of the cynics that we've seen that saw an area thought that it wouldn't work, are certainly very, very focused on it. And I think the farmer that we chose in our part of the world saw a 17% farm improvement, farm improvement productivity, and I think it was about 21% in profit. And at the most recent Field Day in November, he made the comment, I just do it better, which is exactly what it was about doing it with the same resources. And one of the, and so the OSCA bear is an opportunity to actually test our thinking and hopefully get people thinking about the issues. One of the challenges, I think, is how do we redefine the relationships with whether it's Dairy Australia, whether it's Norco the Cooperative, whether it's with the products of suppliers, so that might be a fertilizer company, might be an intertech, might be a verback, it could be anyone that's supplying product into the industry. They all have innovation, they all have opportunity, and they all have opportunity to bring it to the farm sector. How we bring that together and actually work with them to do that is I think is a really interesting way to actually go forward. Doing what we've been doing in the past where we wait for that to come forward I think needs to be really challenged and tested. So that's all about innovation and technology. I think Malcolm Turnbull has done a great job in bringing innovation to the table and putting it at the forefront of Australia. I think that's where if we look at our stagnant growth and we look at the growing volumes of milk in not only New Zealand but Europe, if Australia stands still and allows ourselves to remain or move to a point of uncompetitivist nature, then we really do challenge ourselves in being an export, send as an export player. One of the challenges I said, and I've got a son that's very keen to buy the family farm, push and doubt out, which is all fine, just pay the money. But I think it's about wealth creation. I think how do you create, it's great to see that we've actually got a new increase in flux of kids into universities and doing courses in relation to agriculture. They're the kids that are, in my view, that will actually own their farm. They may not own it when they're 25 to 30, like I did, they may own it when they're 40 to 50, but they are more likely to move to that position and be the farmers of the future. And we've got to encourage them through wealth creation. If we think about the generations that most of us here have come from as farmers, we have come from a very small, humble beginning and actually got reasonable assets as we grow. I think that's what we need to encourage the next generation, the kids that are leaving school and moving to universities. And as we say, we must produce more from less. That's a given and how we do that, I think is a challenge for all of us. One of the pieces is about, that I spend a bit of time talking to our members about is how do we prepare you for that supply of volatility? How do we protect you from the marketplace in the event that there's a calamity or a significant change? And this gets back to the point, I don't see any excuse for us to pick up the phone or send an email to or hop on a plane and go and visit a customer in Japan, China, Asia. Doesn't matter where it is and say, sorry guys, I can't supply you. We've actually had a catastrophe. It doesn't work, it doesn't cut it. We've actually got to have some strong strategies to do that. So how do we do that at Norco? So our geographic spread, as I said earlier, actually is a significant piece to our story. So we support members to invest and grow, so we use the life jacket piece about putting it around it for those young farmers to actually make sure that they can actually grow. But more importantly, we actually have a whole heap of policies that we've put in place with our members to protect them. Now, whether it's around milk pickups when a tanker can't get in due to flood, whether it's about antibody testing and their failed system, whether it's about drought peace, whether it's about a death in the family, we have a whole raft of policies that our member services team know and our directors and our senior management team know that we can draw upon to actually support our farm network at those times of need. And my final slide today is around changing the garden. Just a reflection point for people is that my generation that come through the industry in the 80s, then moved into that cycle of deregulation, the scary thought process, what deregulation is. By the time we got to the mid 90s, we knew what was gonna happen. Then it did happen and chaos hit very, very quickly. And if you look at the Queensland industry, it's been almost halved by it. And that's meant that there's been a changing of relationships, whether it's through the governments through Australia or other providers. We are seen as a different industry and we need to actually grasp that and actually work with it. So that means we need to think about who is going to provide the services that our farm sector want, who is going to stimulate our farm services. In my view, it won't be the government. And it is more likely to be the people that actually work within the sector. I think that's where the responsibility lays. But more importantly, the new generation of people that are actually coming into the agriculture sector, they know nothing about deregulation. It's a story to them. And it's like, oh, dad, don't tell me that. I'm not interested. They're not interested, it's history and we need to move on and they're moving on. And they will bring their new ideas and innovation and technology advances with them. Just fantastic opportunities. And I think my final point for the all us processors, I think we need to find new partnerships, not only with ourselves as processors, but further down the supply chain now. And I keep saying that whether it's industry providers, whether it's our farmers, but we need to challenge ourselves and find new ways to do things. Thank you very much.