 This is a really important picture to us as a company, I mean thanks Alex, we've been around 70 years this year but we started putting a lot of those pictures up around the business because we're reminding ourselves we're a food company and the person that's going to receive that meal is the most important person because all the value in our industry comes from the person that's going to eat that product. So I want to talk to you about value based marketing as an alternative way of thinking about the beef industry and how we traditionally do in commodity and commodities. We spent the last four or five years as a business and I'll show you that's awesome, we'll talk about that in a minute. Getting away from talking about Japan markets and China markets etc and focusing on customers and we concentrate really on our critical collaborative customers, we don't care where they are in the world, what's really important is that we give them what they need. That's really there to say why we're here, I mean the success of the beef industry and our successes are intrinsically linked. I mean we're a large company now, we've got run six meat processing plants across the eastern seaboard of Australia stretching from Rockhampton and Billowheeler in central Queensland down to Naracourt in the south. There's three cattle feedlots in there and some valuating businesses. We export to data about 45 countries, employ about four and a half thousand people today. We've recently downsized the business a bit because as you saw from Trish there the cattle supply has gone down so we have to adjust our business and that's the reason why. I mean it's a really simplistic diagram right but that's a traditional commodity cycle and it's one that we've ridden in the beef industry ever since it started. Two years ago the beef processing sector would have been right at the top of that curve. You've heard about record cattle turn off once in 35 year turn off and a very buoyant US market particularly on the back of the constrained supply. That was really good for processes but alternatively our suppliers towards the bottom of that curve. Right now the role's reversed and really the point is that's not good enough. I mean sustainability means everyone in the supply chain has to do well. That's a recipe for boom and bust. You've seen a lot of capacity added to the beef processing sector in the last three years. Let's come back to ABs in three years time and see what that might look like. So we've got to do something about the commodity cycle and this has been well pointed out by Troy and Trish earlier. We can't compete around the world on price so no good been in a commodity market. That's labour costs on that side. Costs about $300 a head in Australia to process beef on average. Labour's 65% of it and our labour laws etc. We're not going to be able to compete with those other countries. Our energy costs are another really good example, give you a real life example. We get told the other day of our energy providers we can expect increases in utilities charges in South Australia next year of about 20%. I made the point before too on the right there you can see Brazilian versus Australian cattle prices. Now that goes up and down depending on supply but the point is today I wouldn't want to be up in Vietnam or China trying to compete on price when the raw material is twice the price. We think though and really focus on you can change it as I said if we put the people at the top in front. The good news is we can see in that graph underneath WTP is willingness to pay. Now MSA for years has been doing surveys of consumers when they do their MSA tests and you can see what they found doesn't matter what country you're in when you improve the quality of the product people are saying they're willing to always pay more. Research is coming out now which has been really staying to explain that that's not just because it's better quality, more marbling, tastes better it's more consistent and that's the key at that end. People are willing to pay for things that meet their needs time and time again. The Ferrari's in the corner there we tried to fill you see in the next slide why but that's to remind us beast now luxury item and when we market beef around the world we shouldn't be thinking about the commodity we call it a Ferrari instead because when we offer that product to a consumer be they in Indonesia, China and the US it better meet their needs every time and it better have attached to it the attributes that consumers see as important because when you go and you don't need to tell anyone in here when you're going by beef versus chicken and pork today hey it's expensive. And we know consumers will pay more but you've got to give them what they want and that sounds really simple but you're going to see in a few slides why our industry is being challenged to do that and it's not about calling a cutter blade a rump a chuck it's about giving them something that meets their needs on an occasion when they need beef to do a job. But we've got a few challenges as I said the first one is remember that's us we don't make things we buy finished product and we pull it apart and sell the parts I did have one of cattle but I guess this looks better for most audiences we have to have a market for each one of those parts and our job is to find the best market around the world to do that that's one of the ways we combat our relatively high costs and on the car theme we buy all sorts and we did remember there's still an Australian car around so we kept one we buy all sorts of raw material too so we've got all these grades running through the business and I think Alex touched on this in an earlier presentation today the key thing for us in our industry at the moment is the producers the meat processor and the customer we don't speak the same language so it's like the consumer speaks English to the poor Italian meat processor that can't speak any English and then we go and speak to the Arabic livestock producer and it's some horribly confused discussion at the end and one of the challenges for us is to have a consistent language because the theory is really simple what it really should be right is the amount of meat, the amount of product multiplied by the quality and that's what we should be paying but it's nothing like that today and the industry though is moving forward trying to look at a few of these things and that beef language white paper has been around won't mean a lot to some people in the room but I can tell you getting that right on that side for this industry will be the single biggest way to improve farm gate returns and I'll show you we can also get it right but we've got to build trust and you saw a lot of debate in the rural media and particularly last year about and there was a centered inquiry into processor collision etc and that was largely people due to complete dissatisfaction about returns my argument is I'll show you why it's that commodity cycle but we've got to fix it and what really drives dislocation in the supply chain is our current grading system the way we grade and pay for cattle in this country it's not very accurate and to be honest it's not very fair in terms of what the consumer is willing to pay but what it generates is this the top rather than the bottom because when we pay people as a commodity we pay them an average producer thinks that's what happens there's a mob of cattle at the top hay that basically came from genetics that we think we've been reared the same they're all the same they should perform the same but we know they don't we know that actually that mob of cattle will perform like a normal distribution and this is a better chart what we currently pay is the orange there that's the grid average but we know we're using value based marketing calculation which is really the amount of saleable meat and we've got a thanks to Alex and some of these colleagues we've got a value proxy we can show you in that mob of cattle the best of the worst is a huge variation but we're not telling the producer anything about it at the present moment it's all the same so we're not giving anyone the opportunity to make improvements by which I'll show you it's even clearer when you look at it across mobs and there's six different mobs up there we pay on that black line that's what our grid payment system does at the moment the actual performance of the cattle even between mobs varies widely and you can see the individual animals is plus or minus six hundred dollars there and value based marketing really simply means we've got to start paying people closer to the dots rather than the average and giving them information that they can produce more animals that better meet specifications there's also an animal health challenge in the country which we'll talk about we think a lot of those lower performing animals they've had animal health challenges we collect a whole bunch of data in the industry have for a hundred years through the federal department about animal health about how but we don't give any information back to producers good news is it's starting to change and a lot of the work led by the rural research and development corporations is driving that we're starting to move, we can start to move to a model that better reflects consumer value using the MSA system using some of that technology that Alex has spoken about in an earlier presentation rather than trying to sort something out using the number of teeth in the animals head or sex etc and then proximating that as consumer value because there's no correlation but that's what we've all done and yield's a great one, we can start to use x-ray imaging we're not going to use the CAT scanner by the way because it's pretty obvious it's a bit small but that's used for validation that's the gold standard, we start to get these smart technologies in the industry and then we set up CAT scanners to validate those equipment the good news is rather than all those things, we haven't got time to tell you what all those things are in the boxes on the right, we measure all those at the moment we pay a producer on it and the reality is it approximates less than half of the yield but that can make a big difference to a producer to meeting the grade or not, we want to put this equipment into our businesses we've got a much greater degree of accuracy and we've got an image that we can have a discussion with the producer about that technology's there at the moment, it's probably 12, 18 months away from full commercialisation and this is the only meat picture in the whole presentation we can get that animal health data and that's a meat inspector a company employed meat inspector on a chain collecting data we can tell producers about any animal health conditions there and give them opportunities to improve and this is the reason why if we can sort out true value with each animal and help producers understand what the value difference is what's driving value, understanding what Alex said earlier there's going to be a yield and quality trade off how we can demonstrate continuous improvement we're absolutely committed we can drive dramatic change and the example is the dairy industry back in 1980 you can see the average was about 2800 litres per animal it's now 5800 litres and just over 30 years and why dairy companies have given clear payment signals back to producers and our message is really simple the very same tools on farm tools that work for dairy will work for beef we've just got to get the information right we then have an opportunity to change how we've described beef and this is the Australian beef language classification system and Jesus served our industry really well for the last 30 years it's allowed us to trade meat around the world but trade a commodity the problem with that from our perspective is it doesn't tell the consumer anything I'm pretty sure if you will go and look for a beef meal tonight none of those things really going to matter to you about the number of teeth in an animal how much it might weigh what sex it is et cetera and the answer is of course it doesn't it doesn't describe eating quality now we're going to put the consumer in front we need to do something a bit smarter and better integrate with the MSA language any of the producers in the room be very familiar with what's on the left that's a current grid so that's how that's the basis on which we form a contract with the producer and pay them it's very small but don't worry it's very complicated when it's very large on the screen but the opportunity there if we can get this value based marketing system is really be as simple as what's on the right and the numbers the numbers are just numbers but we can select a quality grade pay according to that with some different market access requirements that seems a clear message back to the producer that you know what's what's creates value for some what doesn't and I think the future for us is very simple we want to shift the curve right we've been issued a challenge as I said to improve farm gate returns and improve the returns for the industry and we think this is the way to do it unlock that value that we know the consumer and pay for it translate that back to the industry better more consistently meet the needs of the consumer and it becomes a very positive cycle and we really think with getting the industry engaged behind this we can make some real differences in the next 18 months and finally it's about this guy putting a smile on the consumer's face I was told by Emma later so it is much better than a plate of kale but I'm not sure what that means so I'll leave it there we'll have some time for some questions later and I think we'll write on 15 minutes Alex.