 Ladies and gentlemen, for all the time that I've been involved in the dairy industry, indeed agriculture or perhaps more specifically felt responsible for the leadership of a group of people or the development of a business. I've always felt that it was extraordinarily important to step back as far as you could to have a look at the helicopter view or even the spaceship view if necessary. So I guess I'll begin my speech today by perhaps commenting on what's now a renewed phrase and that is that we've got a current leader that's very fond of saying we've never lived in a more exciting decade and one with more opportunity and of course I agree with that but I would also say that that many leaders have said that in the past. In fact I think you could find in every decade a leader that would say we've never lived in more exciting times and greater times of change and times of greater times of opportunity. So what that actually means and how we actually turn that into something meaningful for customers around the world, for shareholders to choose to invest in you, indeed for farmers who are looking to the future and what their position might be. Quite frankly, you know if the position is that you know if we work really hard we can keep pace with inflation that's not quite where we want to be. We want to be something different to that. We want to create genuine wealth and we want to we want to do that in a number of ways. I don't easily forget the first time I heard stats that are also now more commonly used. From the first time I heard the sort of big population growth stats was from John Beddington, the British chief scientist I can remember sitting there late at night listening to a speech on the radio and I can't even remember why. But of course he was talking about 2050 and 9 billion people and I have to admit that I was thinking 2050 was a long way away and I would probably be retired or dead or very close to both and so I wasn't too worried and as much as I could see it as a great opportunity I wasn't quite sure what it meant to me and thought about it a little bit. Not long into the speech he talked about 2030 and the requirement for a population of 8 billion people we now think that it's going to be higher than that. The need for 40% more food, the need for 40% more energy and the need for 30% more water by that date and I thought gee that's interesting. That's really interesting that that's all got to mean great opportunity. If I was really brutal I'd say that if you were selfish and you're an Australian agricultural producer or process you would say gee that sounds fantastic. My demand is going to go through the roof and I've actually got low production costs and I am going to make out like a bandit. There won't be the requirement for an A-Bear conference because what the outlook will say is all good. Of course we know that not to be true. We know that might be true over in the beef session at the moment but we all know that those moments of glory can be short lived as we've seen in dairy. I am much more inclined to think about my business, think about the industry and think about that broader picture of the world. In the manner that John Doyle and for those that are Australian I don't mean of Roy and HG fame. I mean John Doyle from the California Institute of Technology that has done an enormous amount of work on robust but fragile systems. When I think about the dairy industry I think very much about it in terms of robust but fragile. To not want to spend too much time on the theory behind them John Doyle talked a lot about that story around too big to fail so he talks about the Lehman brothers in the lead up to the global financial crisis. Interestingly robust but fragile happens in nature as well as it does in business. It happens in all walks of life in fact and I guess the best analogy I have and the one that I guess creates the greatest amusement for me is that of course the internet was invented by the US military. It was invented because they saw as a tactical weakness the fact that communication points could be targeted and taken out. So they came up with a system where a message would take many routes and if it got blocked in one direction it would head in another routers and hence the beginnings of the internet so communication could occur in many forms across many different devices in many ways but guaranteed to get to its intended point or very closely likely to get to a tennis point. The US military designs very robust systems. Extraordinary robust system. Ever had your internet crash? Ever seen how fragile it was? A great example a few months ago of exactly how fragile. So in New Zealand they managed to crash the entire internet because people were searching for naked pictures of Jennifer Lawrence. That does prove two things. There isn't a lot to do in New Zealand apart from milking cows and Jennifer Lawrence is obviously a very attractive lady but I can't actually confirm that because I didn't search. But the reality is that that's the story around our industry. It's around all agriculture. Robust but fragile. So I tend to think about the view that's been expressed and I knew would be expressed today around global demand where it sits, the opportunity will be there and don't worry about the volatility. We'll have a trend upward and I say yes. I say that is true. I don't deny that that's that. But I do wonder about what's inside the detail of that statistic if you like because what do we also know about a robust and fragile supply and demand system? We know that small tweaks in global supply will deliver a supply response. So what did we see? So it's really interesting when the data goes up and we say that two years ago Australian dairy farmers had their best economic outcome for 20 years. So did a lot of the rest of the world. Guess what the lot of the rest of the world did? It produced more milk. It responded to that demand signal. In fact, like all good producers, it over responded to it. On top of that, there were other dynamics that started to affect us. We've talked about Russia. One of the things I thought the speakers may have spoke about but perhaps chose not to was that it's not just agriculture. It's not just the supply to man curves that affect your outcome. So here we sit today wondering why production is actually dropping off quicker. But we see oil prices through the floor, which means the corn prices are low. So one of the key inputs rolling in, one of the competition points for corn was obviously fuel and energy. It's all going into feed and guess what? We're producing more milk. So the dynamics around why we sit at a particular point in time in a particular part of the supply to man curve are very volatile and they change consistently. I would be even a little more political and say, if we have a look at the Arab Spring and we have a look at the consequence since the Arab Spring, we can have a look at a number of things there. But one of the things was that food prices were at an all time high. So people couldn't afford food. Fuel prices, energy prices were at an all time high. So suddenly people's economic circumstances started to get worse and you can look across the world at what happens when people's economic circumstances get worse. Geopolitical upheaval, mass migration, all those issues then affect how the global economy works and indeed where we fit in it. I wouldn't ever want to stand here and put my case as an economist. But the reason why I'm making those points is that when we think about how we survive in a big world, we actually have to think small and that might seem quite unusual. Because most people always go, you've got to think big. Of course you have to think big with your ambitions. But in terms of the way you approach it, I think it's really important to go back to some really basic values and measures. So for me, I tend to say around the world, I know that all my competitors and indeed all those people that are producing milk are competing for markets. And we're all competing for them in a particular way. There's been a lot of press about white gold in Australia in recent times, actually until yesterday. And then all of a sudden it's not there anymore. Or it's all doom. It is not true. The opportunity remains there. It isn't doom and gloom, but it is a challenge. And there are many people from around the world, including our European friends, that actually think that their provenance is every bit as good as ours and they indeed think that China is a natural market for them, particularly in the absence of Russia and indeed our friends from the US on the West Coast think the same. So they're all trying to find a path that separates them from the others, that gets them away from those global dynamics. And you can talk about it being branded. And that's fine. And you can talk about giving comfort around the supply chain. And I agree again that all those things are important. But many of you competitors will also talk about those things. So we have to think about how we actually build the relationships. And one of the things that Greg said was extraordinarily important, I thought. Why I say we need to think small is that what I say to my sales team is that we always talk in our business about values and we have lots of different values. We have lots of different values. My mother used to say to me, good manners cost you nothing. How about you start with that? She would roll on beyond that and say, let me explain what I mean by good manners. It's extraordinarily important to make the person opposite you feel comfortable. That's what good manners are. And if you take that, if you take that small thought, and you take it around the world with you, guess what happens? If you spend your time taking the time to understand the cultural nuances, if you spend your time taking the time to understand what product your customer actually wants, if you actually even go further than that and think about what they're thinking about, what they may be looking for in the future, you might actually begin a conversation that will create real value, real opportunity. Why do I particularly make that point? So I'm competing against any number of dairy companies, and it's tough out there. I have never met a dairy industry leader yet that said, I'm going back down the value chain. Every dairy industry leader, every food player says, I'm going further down the value chain, I'm adding more and more value. It's a wonderful aspiration, but we're all heading down the same road at around about the same speed. And one of the effects of that is that what was once value is now commodity. So we've actually got retail commodities now in the dairy industry. It's not just global commodities, they're a retail commodities, and they exist around the world. You see them in one liter and two liter milk in Australia, and you see them even in one kilo cheese in Australia, you see them in Germany in the similar sort of products where it's just directly linked to global commodity market. We have to think differently to find our way out. Again, what do I mean by that? So my one small ad for Bega. So while we've looked to build from knowledge and friends and be small and have big friends and we've benefited greatly from the knowledge that our peers and contemporaries have created in the dairy industry, we need to change. We need to constantly change. We need to actually think outside the dairy industry. One thing dairy's always said, and actually in the past it was probably better at it, than it is now. Dairy's healthy. It's really good for you. It's good for you at all stages of life. What do we see increasingly in the market? We see people increasingly attracted to health. So there's food and there's health. So when everybody wondered or was surprised why we would align with a vitamin company and a company that was interested in bio nutrients, how micronutrients are held in the gut, black morns, it was about moving into the health space. It was about responding to the signals that we all know to be true. Chinese natural medicine is centuries old. Black morns is enormously successful in that market because there isn't a leap for that consumer to say that is something I should do. In fact, they're looking for the provenance line then plays. Purity, provenance from Australia, guaranteed quality, strong branding, strong marketing, strong target to where you want to be. So Bega makes the decision to enter into AJV with black mors because we need to separate ourselves in order to become be in a small world because we can't do that if we just think that we're going to duplicate what all our competitors are doing. I don't think it should just be about supply and demand and the market and this was also touched on a little. I do think that we have to look across the whole supply chain. I do think that we do have around the world. The thing that always amuses me is normally when I'm being yelled at by farmers in Australia, I can find a French colleague that's sympathetic or an American colleague that's sympathetic. I can because around the world we're all being yelled at at the same time and indeed when things are good we're not actually not yelled at but we yelled at more quietly. But the reality of it is so we have the same challenges and the same opportunities. If we're looking to differentiate ourselves in the market we have to think about how we do that, do that right down the supply chain. So I would argue strongly that investment remains the key. And it's not small scale investment, it's large investment. I actually don't mind where that investment comes from. I don't mind whether it's Australian dollars or international dollars. I get worried about becoming almost a corporate weapon in Australia. It should not be the reality is we should welcome international investment. We should welcome it in our infrastructure and we should welcome it in our farms. I have a very strong view that that sort of scale investment in the many forms that it can take will create step change. I think it's extraordinarily important that we encourage everybody involved. You can indeed invest your way to greatness. Very difficult to cut your way to greatness. Very straightforward to invest your way to greatness. I do think that we should think about our resources that we have and how we differentiate. I am concerned, I talked to somebody on the way up here today as I was driving up about water. What he said to me is it's everything. I thought that's probably a little bit too dramatic, but it's only just a little bit too dramatic. So we look at the situation we find ourselves in. In a circumstance where we would say business needs to be agile, business needs to think about a triple bottom line. It needs to make sure that it's not only thinking about profitability, it's thinking about its contributions to community, its impact on the environment, all those things. We've got an interesting circumstance particularly in the Murray Darling system where we've got an owner who's also a regulator. That's unusual and that owner and regulator is of course government. Sorry a partner, they of course don't own at all. But they own so much that they can affect the market and I at the risk of quoting too many people. I do remember Milton Friedman, a very famous Chicago School of Economics, who said he believes that government should never run anything and he believes that, you know, and he famously said, you know, if the government was running a Sahara desert, we'd be able to sand in five years. And I thought that was harsh. I thought that was harsh, but that was Milton. But the bottom line story with that is, is that we now have a system where there is one objective with a nod to the triple bottom line, if you like. So there's an environmental objective and that's fantastic. There's a new owner in there that can manipulate and affect the market enormously who doesn't necessarily have the legislation or the agility to work on a triple bottom line where the socio-economic impact and indeed the need to be able to change each year the way businesses do, to adjust to circumstances because a right decision this year may not be a right decision next year, is an issue. It's one that's been debated, but I just reinforce that it's extraordinarily important that we get that right in one of Australia's largest food producing areas. I would add, however it comes, there is no question that while R&D is extraordinarily important and makes a huge difference, if we are going to have a truly effective growing milk pool that is globally competitive that will supply into the markets that we will that we will adjust and meet in any number of different fashions we need to make sure we've got effective extension and that effective extension probably at the moment is wanting the transition from government providing that extension to private enterprise providing it hasn't been fulfilled in the manner that you might hope and when you point to the number of factors as to why New Zealand may have grown so strongly and Australia did not in that similar period one of the factors only one it would be is how R&D is executed. Ladies and gentlemen, I tend to title my speeches to challenge myself, so if I was to be truthful and because Lee's looked at me with some degree of curiosity I'll make this confession. As my EA is normally bothering me for the title of a presentation or indeed as you can see asking me to actually write one and do one, I keep going past the desk or ignoring the phone calls and I will normally name the presentation in the absence of a better idea after a song and I have no idea why it's a small world after all jumped into my head but it did and after I looked at it I thought it was very appropriate. What we've proven at Beager is that you can take, we take product to 40 countries around the world. We have a really fast growing consumer goods and food service business, we are jumping the fence into a health space with one of the strongest brands in Australia, we continue to invest like there is no tomorrow. I have a great belief in the future of dairy you have to take your entire supply chain with you you have to take your farms with you, you have to take your community with you, you of course have to take your shareholders with you. There will be challenges, there will be volatility. People won't let you have it on your own. Competition in fact drives success, I always welcome it. Used to get a little bit disappointed with the Europeans in terms of the way in which they define competition but that said I would still say that competition is what will make us successful, competition is what will make us innovative. There is a great market out there, there is overall demand and there is great opportunity, we should accept investment, we should make sure that we are driving innovation and we are responding to the market demand in sophisticated ways rather than just a simple supply demand signal. Ladies and gentlemen thank you very much.