NUFFIELD INTERNATIONAL CONFERENCE ADELAIDE STH AUST SEPTEMBER 2011

NUFFIELD INTERNATIONAL CONFERENCE ADELAIDE STH. AUST. SEPTEMBER 2011

Building diversity into the strategy • • Humble beginnings Survival, business and the last 20 years Setting the system, diversity and structure Planning and development Management of risk Opportunities Business Structure and continued improvement and vision • People – relationships, business and staff

Motivators • • Passion for agriculture Adversity Fathers accident – ability to let go, naivety Alastair joining the business – family tenacity an exploiting everyone’s strengths • Nuffield Scholarship • Ability to look within, recognise weakness, adopt change and maintain diversity • Determination

MT. BOOTHBY PAST. CO. • • 6 Tintinara Properties 5600 Ha in total 2200 Ha into grain production 250 ha per year into pasture renovation 4500 Merino ewes as self replacing and prime lambs 300 Angus breeders 40 Ha under irrigation – hay then lucerne 600 sow intensive piggery – Tintinara 1250 sow intensive piggery – Mid North

Production focused integrated philosophies • • Grain Production Grain Storage Feed Manufacture / Distribution Pork Production Grower facility to market weight 35000 bacon pigs annually sold Pig waste spreading / land - pasture improvement – increase grazing capacity

Mt. Boothby Grower Facility

HR Pre Nuffield • • • It was always their fault They should have done it like this I couldn’t allow them to make that decision I wish they’d hurry up Haven’t got time to listen and talk about it, just do it like this • Recognised as one of the districts worst employers

Retention of staff • Giving responsibility and ownership of decision making • Regular management meetings • Identifying key roles and responsibilities • Highly competitive salary packages • Good conditions, facilities and machinery • Recognising individual pursuits and wish’s • Bonuses

Mt. Boothby Structure Board of Directors Managing Directors Andrew Johnson Alastair Johnson Secretary – Sue Edmonds Mt Boothby South – Alastair Johnson Piggery – Alvin, Leonido, Angus Sheep Cattle – Brendon Voss Cropping – Ben Carey Mt. Boothby North – Shane Ellis Maintenance & Trans. – Chris Large Production - Marc Tan Bangalee – Michael Snowtown – Romel Weaners – Jamie and Charlie

Skilled Migration • 457 Temporary Skilled Visas • Highly regulated • Small percentage of employers abusing privilege • GFC – major changes to temporary entries • Lifted base salary to over $45000 • Agriculture really becomes excluded as considered above the award • Regional Skilled Migration Scheme

The beginning of change and diversity in the management • Business Analysis – forecasts and trends, Implementing a Board Structure • Staff and management – Immigration • Strategic plan and KPI’s • Recognising 2 businesses, land production • Systems • Search for opportunities and never give up

Process • • • 6 months We have 5 Filipinos in our business Treated like everyone else They turn up with a bag and no money We also prefer to have their families come We provide furnished housing, transportation, security • We integrate them into the community VERY IMPORTANT

Staff Turnover 100 90 80 70 60 50 40 30 20 10 0 Staff Turnover 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2011 Income and Profitability

Enterprise Performance 150 100 Property Pork 50 Beef Sheep 0 6/12/190 5 12: 00 AM Cropping 6/19/190 5 12: 00 AM 6/26/190 5 12: 00 AM 7/3/1905 12: 00 AM

Nothings more important than the generation you leave behind

Opportunities once we developed a structure • • Private V’s Corporate Local and regional Great Southern Macquarie Bank Singapore Foods Mt. Boothby Continued supply chain management Continual business growth development

BOARD AND MANAGEMENT OFFICE FEED SOURCING MANUFACTURE BUILDING WASTE REMOVAL DISPOSAL GENETICS FEED MILLING CONTRACT CLEANING PRESSURE CLEANING DISTRIBUTION 5000 SOWS STRAW PROCUREMENT 5000 SOWS WEANER FREIGHT G 1 G 2 G 3 G 4 G 5 MARKET FREIGHT PRIMO-COLES G 6 G 7 G 8

Trial With Pigs and Dominance Hierarchies J. Alcohol Abuse 1987 45: 56 -67 Ä Pigs in social groups of 10 dominance orders established Ä All pigs given Ad Libitum Alcohol (Beer / Cider / Wine) Ä Observations on intakes Results ÄDays 1 and 2 - All pigs drank heavily, got drunk and slept soundly ÄDay 2 onwards ÄPigs 1 & 2 - never touched alcohol again – needed a clear head to preserve their position in the hierarchy ÄPigs 3 – 8 were moderate drinkers – occasionally drank at times of stress! ÄPigs 9 & 10 – remained heavy consumers and were mostly permanently drunk throughout the trial

One thing about going the extra mile. . . There’s never a lot of traffic. Thank you