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Australian Livestock Export Corporation Limited
ANNUAL REPORT 2012-13
Table of Contents
About LiveCorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chairman’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Planning Roadmap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Industry Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2012-13 Performance Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Strategic Objective 1 - Animal Welfare . . . . . . . . . . . . . . . . . . . . . . . .10
Strategic Objective 2 - Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Strategic Objective 3 - Market Access . . . . . . . . . . . . . . . . . . . . . . . .14
Strategic Objective 4 - Communications . . . . . . . . . . . . . . . . . . . . . 15
Strategic Objective 5 - Corporate Governance . . . . . . . . . . .16
Research, Development and Extension . . . . . . . . . . . . . . . . . . . . . . . . .18
Supply Chain Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Dairy Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Services and Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Compliance Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Membership Register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Financial Annual Report
Directors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Auditor’s Independence Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Statement of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . .34
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Statement of Changes in Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Directors’ Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
Audit Compliance Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Livestock Export by Destination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
List of Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
CONTENTS
1
ABOUT LIVECORP
The Australian Livestock Export Corporation Limited
(LiveCorp) is a not-for-profit industry body owned and
funded through contributions by livestock exporters.
It is primarily funded by statutory levies on exports of
beef cadle, sheep and goats. A voluntary levy is also
received for dairy cadle exports.
The current levy rates are:
Beef cadle - $0.009523 per kg
Sheep - 60 cents / head
Goats - 50 cents / head
Dairy cadle - $3 per head (voluntary)
Through its investment of these levies, LiveCorp
provides research, development and extension (RD&E),
marketing, training and communications services to the
Australian livestock export industry, working closely with
stakeholders to continuously improve industry operations.
LiveCorp’s Mission
LiveCorp’s mission is to enhance the productivity,
sustainability and competitiveness of Australia’s
livestock export industry by undertaking RD&E,
providing technical services/support and monitoring
and reporting on programs and issues that facilitate:
Continuous improvement in livestock management,
health and welfare throughout the supply chain;
Improved market access and market development
for Australian livestock exporters; and
Improved efficiency and productivity in the livestock
export industry’s supply chain capability and
performance.
LiveCorp’s Strategic Objectives
To deliver against its mission, LiveCorp has five key
strategic objectives. These strategic objectives align
with the Red Meat Industry Strategic Plan (RMISP) and
the Australian Livestock Exporters’ Council (ALEC)
Strategic Plan and aim to increase opportunities to
partner with Meat and Livestock Australia (MLA)
through the Livestock Export Program (LEP).
The five strategic objectives are:
Improve animal health and welfare
outcomes throughout the supply chain
Improve supply chain efficiency
and regulatory performance
Enhance market access conditions
for existing and new markets
Enhance communication providing
information and services on program
progress and issues to industry
and government
Improve corporate operations governance,
planning, evaluation and review to ensure
efficient and effective investment
2
Aler nine years of service to the LiveCorp board and
the livestock export industry, I am pleased to report
on its annual achievements for the final time. It is with
significant pride that I am able to report that LiveCorp
has delivered well above the expectations of its 2012 –
2013 Annual Operating Plan (AOP) to meet the needs of
its members.
As per previous years, LiveCorp maintained its strong
investment through the Livestock Export Program
(LEP) with Meat and Livestock Australia (MLA). This
continues to be the largest allocation of LiveCorp
resources through which RD&E and in-market services
in support of LiveCorp’s strategic objectives are
delivered. MLA is the major partner in the LEP and as
my time with LiveCorp closes I would like to take this
opportunity to thank MLA for its strong partnership
and unerring support. The LEP remains a true example
of collaboration to deliver beder benefits for producers
and exporters.
The achievements of the LEP were significant as it
continued to support the adoption and roll-out of the
Exporter Supply Chain Assurance System (ESCAS)
to encompass every market for Australian feeder/
slaughter livestock. Its expansion included markets
such as Israel, Japan, Jordan, Oman, Philippines, United
Arab Emirates, Vietnam, Mauritius and Russia: as well as
the dominant goat markets of Malaysia and Singapore.
The LEP in-market managers for Indonesia, the Middle
East and North Africa (MENA) and South-East Asia (SEA)
delivered key animal welfare programs in line with the
LiveCorp/LEP AOP to facilitate ESCAS adoption and
ongoing improvements in its performance.
The three major streams of activities were the
in-market gap analyses, risk analyses and animal
welfare training which formed the basis of a simple and
effective improvement cycle. Gap analyses informed
and prepared supply chains to meet ESCAS standards;
risk analyses identify and address risks or exposures
in operational ESCAS supply chains (and allowing for
improvements over and above the normative ESCAS
standards); and ongoing training to equip individuals
with new knowledge and lifelong skills in animal welfare
and animal handling to exceed ESCAS requirements.
I note in particular the achievement of the LEP
in-market managers and their consultants in
delivering best practice animal welfare, animal
husbandry and handling training to more than 3000
supply chain participants and stakeholders since the
implementation of ESCAS.
This contribution to the pursuit of global animal welfare
improvements is generational and I commend them for
their work on the ground driving these global changes.
The LEP in-market managers also deserve
commendation for their outstanding work in managing
critical incidents that have occurred. The rejection of a
consignment in Bahrain and the subsequent needless
and devastating slaughter of livestock in Pakistan was
a major incident that affected many within the industry.
LEP in-market managers were also critical in responding
to ESCAS breaches in Malaysia and Indonesia, as well
as evidence of animal cruelty in Egypt. This support
involved helping exporters and importers to identify
where systems had failed and to take immediate
corrective action and training to resolve them.
Domestically, a key focus for the LEP and LiveCorp was
engaging with the Australian Government in a wide range
of processes in considering the implementation of the
Farmer Review recommendations and other regulatory
assessments. These included the reviews of the
Australian Standards for the Export of Livestock (ASEL),
the Fremantle pre-inspection procedures, Marine Order
43, the Mark IV Restraint Box and the consignment risk
management processes.
In 2013-14 the LEP will continue to address these reviews
while also targeting opportunities to improve the
efficiency of the regulations governing the trade. In both
ESCAS and ASEL there are significant opportunities for
improvements. It will be vital that all proposed changes
are able to be justified by rigorous evidence and good
science. They also need to support animal welfare
improvements as well as the productivity, profitability
and sustainability of the trade.
The LEP RD&E Program continued to deliver enabling
science to underpin LiveCorp and LEP programs and
to increase the knowledge base and understanding
of challenges facing the industry. Services range
from training DVDs, development of a salmonella
vaccine, practical experiments to better understand
inanition, as well as the preparatory work on Quality
Assurance for both ESCAS and ASEL. It is from
this platform of science that LiveCorp and the LEP
are able to identify the changes that will carry the
industry forward and continue to improve its success
and performance in the future.
It also proved to be a challenging year for market access,
with established markets changing the conditions of
access and ESCAS introducing a new complexity to
gaining access in new markets.
CHAIRMAN’S REPORT
3
In the past, the industry would initially have faced
questions about Australia’s animal health status and
basis for certification, but these discussions are now
saddled with the added complexity of explaining and
gaining acceptance of the Australian regulation.
With drought and declining terms of trade in 2012-13,
the need to open markets became a significant
driver of LiveCorp’s activities. The difficulties in
building understanding and acceptance of ESCAS
and then negotiating health conditions, presented
a significant barrier. However, I remain positive that
industry can work with the Australian Government to
overcome these difficulties and open significant new
opportunities in 2013-14.
From a corporate governance perspective, the LiveCorp
Board remained commided to implementing operational
efficiencies in order to deliver the widest possible
range of services within its limited (declining) financial
resources. In order to achieve further cost savings and
efficiencies as outlined in 2011-2012, LiveCorp delivered
on its commitment to reduce the size of the Board. The
management team also continued to embed a culture
of cuding costs and creating operational savings to
maximise program allocations. These efficiencies
delivered a further 8% decline in operational expenses
and an equivalent increase in program expenditure during
the reporting period. I commend the management team
on their tireless work and dedication in achieving this
outcome under extreme external pressures, while dealing
with a decline in overall exports and levy revenue.
During my time as Chairman I have been moved by the
people I have met and the changes that both individuals
and the industry have embraced to ensure future
viability. I would like to thank them and emphasise that
the success of the trade is built around strong and deep
relationships across all parties within the supply chain.
These relationships are the true measures of success
and underpin trust, assurance and stability.
In conclusion, I offer my prediction that within a decade,
we will look back to 2011-13 as the start of the most
significant improvements to animal welfare experienced
globally; instigated through the commitment of the
Australian live animal export industry and support of
the Australian Government . We will also see the changes
driven by the live export industry and its importers
under ESCAS for what they are – the single biggest
impact on net global animal welfare improvements ever
achieved. I wish the Australian live animal industry every
success for the future.
Dr. Raoul Nieper A.M.
Chairman
4
PLANNING ROADMAP
Red Meat Industry Memorandum of Understanding (MoU)
The Australian Livestock Exporters’ Council (ALEC) and the Australian Livestock Export Corporation (LiveCorp)
are signatories to the MoU. The Red Meat Advisory Council (RMAC) is the custodian of the MoU.
Meat Industry Strategic Plan
Guaranteeing vital food for the nation and the world – the Meat Industry Strategic
Plan (2010–15) for the Australian red meat industry from which whole-of-industry
strategic imperatives were identified and from which the individual sectors and their
sector companies are able to focus their own strategic and operational plans.
RMAC is the custodian of the Meat Industry Strategic Plan.
Livestock Export Industry Five Year
Strategic Plan 2010–14
This plan is set in the context of the MoU and
the Meat Industry Strategic Plan. ALEC is the
custodian of the Livestock Export Industry
Strategic Plan.
Australian Livestock Export Corporation
(LiveCorp) Strategic Plan 2011–14
This plan is set in the context of the MoU, the
Meat Industry Strategic Plan, the Livestock
Export Industry Strategic Plan, the Statutory
Funding Agreement (SFA) and identified
Government priorities. The LiveCorp Board is the
custodian of the LiveCorp Strategic Plan.
Australian Livestock Exporters’ Council
Strategic Plan
This plan is set in the context of the MoU and the
Meat Industry Strategic Plan. The ALEC Board is
the custodian of the ALEC Strategic Plan.
The Statutory Funding Agreement (SFA)
The SFA between LiveCorp and the Australian
Government recognises LiveCorp as the
marketing and research body for the livestock
export industry.
Government priorities
LiveCorp must align to and deliver upon these
priorities principally, but not exclusively, where
matching Australian Government funding is
provided, including:
National and Rural Research and Development
Priorities.
The development of the National R,D&E
framework.
Program evaluation and measurement.
Program cost allocation principles.
Reporting.
Livestock Export Program (LEP)
In conjunction with MLA and through the
LEP, LiveCorp is involved with a wide range
of livestock export industry programs and
initiatives that are delivered through the
LiveCorp and MLA Annual Operating Plans.
5
6
Volumes and Values
Export volumes in 2012-13 recorded a
further decline for caQle, sheep and goats
volumes year-on-year. The decline in
caQle volumes to both Indonesia and the
Middle East and North Africa (MENA) are
a result of a number of factors including
historically low export quotas, disruptions
associated with the voluntary suspension
of trade to various key markets and strong
competition from other exporting nations.
CaQle
In 2012-13, 633,703 cadle worth $589 million were
exported live from Australia, representing a 7 percent drop
in numbers and a 10 percent drop in value year-on-year.
In addition to reduced import quotas to Indonesia over the
reporting period (down from 286,000 in 2012 to 271,328
in 2013), the failed wet season and dry conditions across
northern Australia resulted in a rapid turn-off of cadle.
Market limitations such as import quotas and the
continued establishment of ESCAS, have restricted
exporters’ ability to place livestock in export markets,
compounding the hardship faced by producers with
declining farm gate returns.
However, other markets within South East Asia such as
Malaysia, Philippines and Vietnam have shown promising
signs of being valuable market outlets for heavier cadle.
The LEP will continue to develop programs to support
this growth.
INDUSTRY OVERVIEW
Export Volume
Export Value
● Ca$le 23%
● Sheep 75%
● Goats 2%
● Ca$le 74%
● Sheep 25%
● Goats 1%
0
200,000
400,000
600,000
800,000
1,000,000
Global TradeOtherMENAMalaysiaIndonesia
Ca,le Exports by Destination
● 2010-11 ● 2011-12 ● 2012-13
2012-13(2,753,463 head)
2012-13($797 million)
7
Sheep
Nearly 2.1 million sheep worth $201 million were exported
live in 2012-13, representing a 20 percent fall in volume
and a 42 percent decline in value compared to 2011-12.
Whilst ESCAS has played a role in suppressing sheep
exports (as importing countries work through the details
and reporting obligations), the voluntary suspension of
exports to Bahrain has been a major contributing factor
to the decline. Whilst the reestablishment of the trade
to Bahrain remains a priority, shipping logistics have also
been disrupted and Gulf markets prefer to receive small
but regular consignments.
Much of Australia was experiencing very dry conditions
throughout the year, which meant that by summer, many
producers were lel with lidle choice but to sell lambs
that may have otherwise been held for a longer period
or further breeding. The large number of lambs reaching
the market at the same time resulted in lamb prices
falling sharply from mid-2012 to early 2013.
Market opportunities in Turkey, Iran and Saudi Arabia
represent significant prospects for increasing export
volumes in the short to medium term. Sheep exports to
Bahrain fell 84 percent year-on-year from 386,941 to
62,250 head, while Kuwait has declined 23 percent from
901,486 to 693,265 head and Turkey reporting a decline
of 57 percent from 292,598 to 125,067 head.
Two markets, however, have increased their imports in
2012-13: Qatar imports have increased 29 percent from
456,436 to 588,078 head, while a one off consignment
was reported to Saudi Arabia of 69,000 head.
Goats
In 2012-13 goat exports decreased 14 percent to 62,075
(subject to revision). The total value of these exports was
$7.2 million which is a decline of 26% on the 2011-12 earnings.
Malaysia was again the primary market for live goats,
followed by Singapore and Brunei. Goat exporters
report strong demand fundamentals as a result of low
domestic goat numbers within the South East Asian
region (Thailand and Myanmar).
Goat Exports by DestinationSheep Exports by Destination
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Global TradeOtherMalaysia0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Global TradeOtherQatarKuwaitJordan
● 2010-11 ● 2011-12 ● 2012-13● 2010-11 ● 2011-12 ● 2012-13
“Exporters’ inability to place
livestock in export markets
has compounded the hardship
faced by producers.”
8
How LiveCorp delivers against its
Strategic Objectives
LiveCorp invests levy funds into key program areas
to deliver against the strategic objectives set in the
LiveCorp Strategic Plan 2013-15 and 2012-13 AOP.
Each year LiveCorp and MLA, in close consultation with
exporters and the relevant peak councils, prepare and
finalise the LEP AOP to ensure that LEP activities align
with each organisation’s strategic objectives.
Within the LEP, activities are delivered through three
core programs:
In-market supply chain efficiency, animal health/
welfare and market access programs
There are three in-market programs that deliver animal
health and welfare services, technical and market access
support overseas. They are Indonesia, South-East Asia
and the Middle East and North Africa (MENA).
The Indonesia program is delivered through the
MLA Jakarta office which is jointly funded through
MLA meat and livestock export programs. The office
is headed by a Regional Manager, with the LEP animal
welfare program overseen by the Indonesia Animal
Welfare Manager.
The MENA Livestock Services Manager is located in
Dubai, while the South East Asia Livestock Services
Manager is based in Sydney.
MLA is the primary contributor to the LEP
in-country programs.
Industry Capability Program
The Industry Capability Program is responsible for
domestic supply chain activities, including working with
government and industry to provide advice and support
on regulatory maders and operational issues.
It also works closely with the Australian Government to
pursue market access protocol developments, including
through the coordination of the industry/government
Protocol Commidee.
RD&E Program
Outputs from the LEP RD&E program deliver directly
against LiveCorp’s Strategic Objectives (1-3), as well as
enabling and supporting other LEP/LiveCorp programs
to deliver against these objectives.
Through the joint investment in the RD&E program,
LiveCorp and MLA achieve efficiencies by using the
existing MLA research framework and systems.
The RD&E program coordinates the management
and completion of a range of projects targeted at
industry priorities.
The priorities for the RD&E program are set in the LEP
Strategic Plan and focus on projects that will address
key areas of risk or hazard across the program areas
(animal health and welfare, supply chain efficiency and
regulatory performance and market access).
RD&E projects are assessed and prioritised through
the Livestock Export Research and Development
Advisory Commidee (LERDAC), which is composed
of representatives from LiveCorp, MLA research and
development (R&D), the LEP, the Cadle Council of
Australia (CCA), the Sheepmeat Council of Australia
(SCA), LiveShip, and ALEC. An independent technical
advisor also provides specialist advice to LERDAC on
projects and research proposals.
In addition to the LEP, LiveCorp also invests in the
provision of the following services and programs in
support of its strategic objectives:
Communications
LiveCorp’s communications activities focus on the
effective transfer of information to and between
exporters and key industry stakeholders, including
government. LiveCorp provided this through the
website and other mechanisms such as the industry
circular. The LEP also has its own communications
program through which LiveCorp conducts most of its
communications activities.
Communications with the media and the public are primarily
through the industry’s representative body, ALEC.
LiveCorp Services and Innovation Program
LiveCorp’s Services and Innovation Program supports
industry to increase its capacity to meet and exceed
existing standards, regulation and reporting obligations.
It achieves this by providing training in livestock handling
and compliance requirements to on-board stockpersons.
The Services and Innovations Program also provides
services to assist in the development of improved
information management systems to enhance
communication and create regulatory efficiencies.
2012-13 PERFORMANCE HIGHLIGHTS
9
Corporate Governance
LiveCorp’s corporate governance activities support the efficient and effective management of levy revenue and its
operations. The program ranges from day to day operations and activities in delivering LiveCorp and LEP programs,
administrative obligations under the SFA, ASIC requirements, the Board and associated commidees, and oversight of
management accounts and general industry obligations (AGM etc).
How LiveCorp Invested 2012-13 Levies
Expenditure
● Corporate Operations 33%
● Services & Innovations 2%
● Exporter Programs 29%
● MLA LEP 36%
Expenditure($3.275 million)
● Market Access 5%
● Supply Chain 6%
● Animal Welfare 35%
● Communications 3%
● R&D 51%
MLA LEP Program Expenditure
LiveCorp LEP Contribution($1.180 million)
● Statutory Levies 83%
● Dairy Levies 4%
● Investment Income 5%
● Grant Funds 4%
● Other Income 4%
Revenue Streams
Revenue($3.632 million)
10
Strategic Objective 1: Improve
animal health and welfare outcomes
throughout the supply chain
In line with LiveCorp’s Strategic Plan, animal welfare
continued to be a priority in 2012-13, with approximately
20 percent of expenditure allocated to this objective.
Additional animal welfare expenditure also flowed
through the programs delivered under Strategic
Objective 2 - Supply Chain Efficiency and Regulatory
Performance.
The following performance highlights summarise the
animal health and welfare activities of the LEP in-
market programs. Further information on the animal
health and welfare related activities undertaken by the
RD&E, Industry Capability and LiveCorp Services and
Innovation programs are summarised later in this report.
Training
A focus for the in-market programs in 2012-13 was the
delivery of animal health and welfare training to support
exporters and importers achieve ongoing improvements
and compliance with the Exporter Supply Chain
Assurance System (ESCAS).
These training programs continued to promote ESCAS
requirements, OIE guidelines and the adoption of
Standard Operating Procedures (SOPs).
Animal health and welfare training provided across the
in-market programs included:
MENA
Formal and informal (eg. on the job) training was delivered
to 1,100 participants in the MENA region in 2012-13.
Indonesia:
Training was delivered to 809 participants in Indonesia
in 2012-13, taking the total number of participants
trained since September 2011 to over 3000.
South East Asia
Training was provided to 850 participants across the
South East Asian region.
The delivery of this training by the LEP reflects a
significant investment by Australian producers and
exporters to support operators of supply chains in
Australia’s export markets to improve their
knowledge, awareness and skills in animal welfare.
In 2012-13, the RD&E program undertook the
development of standardised training programs for
cadle and sheep focused on delivering uniform training
against SOPs along the supply chain.
The project developed SOPs and training support
materials across the supply chain that reflected the
ESCAS animal welfare checklists.
The relevant modules were:
Port
Transport
Feedlot
Lairage
Slaughter with stunning
Slaughter without stunning
Animal handling
(universal across all supply chain components)
The standardised training programs were piloted in
Indonesia for cadle in October 2012 and in the United
Arab Emirates (UAE) for sheep in February 2013.
Participants included LEP consultants, importers,
exporter representatives and abadoir managers.
The feedback from these sessions allowed the
refinement of the training programs which will be
rolled out further in 2013-14.
These standardised training programs will help align
training across the LEP and support importers and
importing country governments to conduct their own
animal welfare training. Importantly, this program
involves a ‘train the trainer’ module that is critical in
leveraging the industry’s efforts by embedding animal
welfare training capability within foreign countries
receiving Australian livestock.
Gap and risk analysis
On 1 January 2013, all markets for Australian livestock
exports for slaughter or feedloding purposes came
under ESCAS. In the implementation and extension of
ESCAS, it has continued to be a key role for in-market
programs to support exporters to:
Identify areas where new supply chains may need
improvements to ensure compliance with ESCAS
requirements (gap analyses); and
Identify hazards that may develop in existing
operational supply chains, to allow prompt
resolution (risk analyses).
ANIMAL HEALTH AND WELFARE
11
These services were provided throughout 2012-13 at
the request of exporters in each region and included:
MENA
More than 60 gap or risk assessment reports were
completed and provided to exporters. Gap analyses
were undertaken in Algeria, Russia, Turkey, Qatar, Iran,
Israel, and Lebanon. Risk assessments were completed
for supply chains in Oman, Kuwait, Qatar, Israel, Egypt,
Jordan, and UAE. Considerable time and effort was
also spent in developing standardised templates for
these reports to assist with exporter confidence and
confidentiality in reporting.
Indonesia
LEP Indonesia continued to roll-out its risk assessment
and internal monitoring program, with 97 initial risk
assessments completed and an increased adoption
of the supply chain monitoring system. These risk
assessments have provided recommendations to
reduce risks in supply chains, and the strong uptake of
these recommendations was identified.
South East Asia
In the first few months of 2012-13, the LEP focused on
assisting exporters and importers with gap analysis,
training and technical advice to supply chains in
Malaysia, the Philippines and Japan for the introduction
of ESCAS in September 2012. Assistance was also
provided to Brunei and Mauritius, where ESCAS applied
from January 2013. Gap analysis, training and technical
advice was also provided to goat and sheep supply chains
in Malaysia during the year.
Industry Collaborative
Animal Welfare Program
A new LEP initiative in 2012-13 was the introduction of
the Industry Collaborative Welfare Program (ICWP).
This program provided livestock exporters with funding
from the LEP (primarily through MLA) for the placement
of locally engaged animal welfare or supply chain officers
within markets.
The program provided a capped limit of $75,000 per
exporter per region with a maximum of two regions per
exporter. The ICWP program expenditure in 2012-13 was
$309,639 with personnel engaged in the Middle East,
Indonesia and other Asia.
Technical support during festival periods
The LEP in-market programs also provided additional
technical support for key festival periods and included
key activities for:
Ramadan – Indonesia
Eid al Adha – MENA
Korban – SEA
Eid al Adha 2012
The objective for Eid 2012 was to work with Australian exporters, and their supply chain partners, to build on
Eid 2011 initiatives and to deliver improved and more effective systems that meet ESCAS requirements and the
expectations of Australian and overseas stakeholders. At the same time, the focus shiled to providing greater
assistance in the months leading up to Eid to help build livestock handling systems and management structures.
This increased compliance capacity facilitated a relatively smooth transition of ownership and responsibility of
ESCAS to the exporter and importer through the peak Eid period.
The 2012 LEP Eid program was successful with no reported ESCAS non compliances in those markets and
supply chains that requested LEP support and technical advice. In total 17 resources were stationed across
facilities within Kuwait and Qatar and these included a LiveCorp Director, CEO, LEP staff and consultants
along with exporter representatives. The key success factors included: restricting livestock sales to strategic
facilities; not allowing livestock to leave the facility; working with facility management to develop a customer
and livestock management plan; minimising customer / livestock contact; communication plans and strategies
targeting customers.
12
Farmer Review
In 2011, the Farmer Review recommended that a comprehensive review of ASEL be undertaken.
The LEP prepared a comprehensive submission that was prepared in consultation with exporters, ALEC, ALEC’s
state chapters, LiveShip, LiveAir, CCA, SCA and the Goat Industry Council of Australia.
The LEP submission provided comments which noted:
The growth of the current regulatory framework has occurred incrementally over several years, leading to
an increasingly complex web of regulation of differing jurisdictions, purposes and hierarchy. The complexity
of these regulatory arrangements has led to duplication and confusion in their application, increasing the
enforcement and compliance costs for industry and government.
The current structure of ASEL is not in line with best practice regulation. The use of mandatory and
prescriptive standards to ensure operational elements are met has several shortcomings. These include a
focus on operations rather than outcomes; higher enforcement costs; restrictions on innovation; a lack of
flexibility in enforcement/compliance; increased risks of perverse outcomes; difficulty in keeping standards
current; and inconsistent or differing interpretations of ambiguities.
The LEP submission also provided input against the specific items identified in the Terms of Reference for
the ASEL review relating to the export of sheep from southern ports and provided detailed suggestions for
refinements to the existing ASEL clauses.
In addition to its submission to the ASEL review, the LEP also simultaneously provided submissions to the
Fremantle review and the review of the Livestock Export Standards Advisory Group.
These submissions were accompanied by relevant RD&E reports and during the entire review process, the
following relevant new reports were also provided to support the steering commidee and government:
Refining Stocking Densities, 2013
Review of ASEL scoping study – Export of sheep to the Middle East from Southern ports, April 2013
Review of sheep pre-embarkation inspection processes, 2012
Other highlights
Meat quality and welfare seminar series - MENA
During May 2013, the LEP delivered 11 meat quality and
food safety seminars in the Middle East region
(Jordan, Israel, Kuwait, Qatar, Oman, Abu Dhabi and Dubai).
The seminars were delivered by staff and consultants
from the LEP and the Australian Government
Agricultural Counsellor for the Middle East. The focus
of the events was on the Australian meat production
supply chain and general factors that influence meat
quality. A particular emphasis was also placed on the
links between good animal welfare and low stress animal
handling and improved meat quality. Adendees at the
seminars included Government authorities,industry
bodies and interested importers. The seminars provided
an excellent opportunity to reinforce relationships (both
for Government and the LEP) with importing country
Government representatives.
Technical advice – MENA / Indonesia / South East Asia
In addition to the technical advice on ESCAS
implementation, LEP consultants provided on-the-ground
technical advice throughout all the export regions.
Advice included activities such as ESCAS
implementation, infrastructure design and installation,
training and facility improvements , preparation
and planning for key festivals (Eid al Adha / Korban /
Ramadan), meat hygiene seminars, butcher training,
stunning and slaughter training, as well as general animal
welfare advice.
In the South East Asia region, 122 days of technical
advice was also provided. This included technical advice
on the operation of pneumatic stunners in the Philippines
and Malaysia.
ANIMAL HEALTH AND WELFARE
13
Strategic Objective 2:
Improve supply chain efficiency
and regulatory performance
Supply chain efficiency and improved
regulatory performance have been key
focuses for the LEP over 2012-13.
With the continued operation of ESCAS
across all feeder and slaughter markets,
it is vital for the long term productivity
of the trade that ongoing efficiencies
can be identified to reduce regulatory
costs, while maintaining high animal
welfare standards.
In 2012-13, industry and government continued to
utilise the Industry Government Implementation Group
(IGIG) and its sub-commidees to collaborate in the
development, review and refinement of regulation.
Key activities in relation to ESCAS were LiveCorp and
the LEP’s involvement in IGIG sub-commidees on:
ESCAS performance auditing arrangements
The Australian Chief Veterinary Officer’s review
of the Mark IV box
The review of the ESCAS/OIE animal welfare checklist
The LEP also provided feedback to government on a
range of operational issues and materials, including
various Export Advisory Notices.
Additional IGIG sub-commidees were also formed to
consider issues relating to contingency planning and
risk management, scabby mouth and the government’s
breeding livestock policy. LiveCorp and the LEP were
active members of all meetings and provided extensive
feedback and support. The Industry Capability Program
within the LEP also played a key role in LiveCorp and
the LEP’s contribution to the implementation of the
recommendations of the Farmer Review.
To pursue the implementation of these
recommendations, the Australian Government
established a number of reviews which the LEP
made submissions and contributions to, including:
The review of the Australian Standards
for the Export of Livestock (ASEL).
The review of the pre-export inspection
arrangements at the Fremantle Port.
The review of the animal welfare assurances
around breeding livestock.
The Australian Maritime Safety Authority
review of Marine Order 43.
The LEP provided a comprehensive submission to
the review of ASEL and the pre-export inspection
arrangements in Fremantle, highlighting relevant RD&E
and areas where LiveCorp and its members believed
improvements could be made.
Although, the Research and Development Corporations
(RDCs) were not members of the review process, the
LEP provided continual support to the Department of
Agriculture Fisheries and Forestry (DAFF) and ALEC
representative on the Commidee to ensure that relevant
RD&E was available and to provide technical advice
on request. For example, the LEP coordinated the lead
researcher in developing the livestock export industry
heat stress risk management tool to present to the ASEL
Steering Commidee.
The LEP was also a member of the Australian Maritime
Safety Authority Livestock Advisory Commidee and
provided market access advice and support to other
parties, such as state and territory governments on
request.
The RD&E program also delivered a range of projects
in support of the reviews, including releasing reports
aimed at supporting the government’s processes.
These reports included a CSIRO research project
to validate the current ASEL stocking densities by
conducting onboard measurements of animal welfare
indicators and a report which detailed and assessed the
pros and cons of the Fremantle, Adelaide and Portland
pre-export inspection systems.
The Industry Capability Program and the RD&E Program
also coordinate significant research projects aiming to
identify significant mechanisms to reduce the costs of
regulation on the industry.
These included projects considering potential
opportunities to develop quality assurance systems
for ESCAS and ASEL and developing a contingency
risk management manual.
SUPPLY CHAIN
14
MARKET ACCESS
Strategic Objective 3:
Enhance market access conditions
for existing and new markets
2012-13 was a volatile year for Australia’s
livestock export industry with market
access conditions changing for a variety
of key markets, including Indonesia,
Bahrain and Egypt.
The LEP in-market Livestock Services
Managers for the different regions
faced many challenges and issues over
the financial year particularly prior to
December 2012, where the industry was
forced to deal with an unforeseen number
of market access issues. These responses
required considerable commitment of
LEP resources.
In addition, the LEP made regular visits
to key markets to engage with importers,
government representatives as well as
Australian Government representatives
and trade officials in support of market
access improvements.
Consequently , the market access priorities expanded
with industry and the LEP focused on three key areas:
Re-establishing key markets where access
issues had occurred
Maintaining and improving existing market
access conditions
Identifying and opening new markets
In 2012-13, the industry continued to use the long
established Livestock Export Industry Protocol
Commidee as the mechanism for providing advice on
technical market access issues and identifying and
prioritising market access priorities. The LEPs Industry
Capability Program provides secretariat support to the
Protocol Commidee.
The Protocol Commidee is composed of members from
separate areas within DAFF, LiveCorp, MLA, SCA, ALEC,
CCA and ALEC nominated exporter representatives
from different industry sectors.
The Protocol Commidee met twice in 2012-13, in
Fremantle and Canberra. The meetings were well
adended by exporters, industry and government and
provided opportunities to discuss priority issues.
In addition to the formal meetings, the Protocol
Commidee received multiple requests for advice and
opportunities for input on a range of technical issues, as
well as protocol developments through correspondence.
In 2012-13, market access issues considered by the
Protocol Commidee with LiveCorp/LEP support were:
Advice on the Solomon Islands feeder cadle health
protocol - which was finalised and agreed to in 2012-13;
Consideration of more than 14 protocols for different
species and markets;
Contributions to the development of consistent
certifiable wording for health conditions;
The development of an industry position on HGP
freedom processes;
Advice on the livestock export industry’s Bovine
Johne’s Disease position
Scabby mouth management
LiveCorp also provided technical support to an industry
delegation to Indonesia under the dairy program and
presented to a number of delegations visiting Australia.
In light of various market disruptions, there was
also increased adention on the effectiveness of the
Memorandums of Understanding (MOUs) between
Australia and overseas markets. To support the
Australian Government’s preparation of a MOU policy,
the LEP, through the Industry Capability Program,
prepared a comprehensive submission encompassing the
joint positions of MLA, LiveCorp, ALEC, CCA and SCA.
LiveCorp also continued its involvement and investment
in the National Arbovirus Monitoring Program
(NAMP) throughout the year. The NAMP monitors the
distribution of economically important arboviruses (i.e.
insect-borne viruses) of livestock and their vectors in
Australia. These viruses include bluetongue, Akabane
and bovine ephemeral fever (BEF). NAMP is jointly
funded by its primary beneficiaries, including the cadle,
sheep and goat industries, livestock exporters, and the
state, territory and Australian governments.
15
Strategic Objective 4:
Enhance communication
LiveCorp’s communications program focused on:
Providing technical advice to support the livestock export
industry’s representative body – ALEC, to respond to media
inquiries and critical incidents (Bahrain / Pakistan / Egypt /
Malaysia / Kuwait) and general issues (economic value/
benefits of the trade etc).
LiveCorp also made available an additional $117,500
for ALEC to undertake social media workshops and
an industry communications strategy.
Regular communications and coordinating teleconferences
with members and relevant stakeholders to facilitate the
sharing of industry information and discussion.
Redeveloping the LiveCorp website to improve access
to information, resources and RD&E.
COMMUNICATION
Website Update
During 2012-13, a highlight for the
Services and Innovation Program was the
redevelopment of the LiveCorp website
to enhance communication with and the
extension of RD&E to stakeholders and
the broader community.
The layout and content of the website
was designed to enhance communication
and the provision of information and
resources to industry. In addition, a review
of LiveCorp’s information management
was completed to enhance administration
and dissemination of information and
resources to industry and government.
16
Strategic Objective 5:
Enhance corporate governance
LiveCorp Corporate Efficiency Plan
In 2012 as a result of the dramatic decrease in levy funds
the LiveCorp board, following consultation with industry,
commided to develop and implement a plan to reduce
overheads through improved efficiencies.
Several key components were developed and delivered,
including the relocation of LiveCorp’s office to co-locate
with MLA and the realignment of staffing to program and
strategic objectives.
LiveCorp also commided to reducing its Directors from
seven to five through the reform of the Constitution.
Following consultation with members, the LiveCorp
Board proposed Constitutional amendments to achieve
this reduction.
On 12 June 2013, LiveCorp members unanimously voted in
support of amendments to LiveCorp’s Constitution at a
General Meeting held in Brisbane.
The approved amendments reduce the LiveCorp Board
from seven to five Directors, nominate skills required
of the Exporter Directors, require the Chair to be
independent and appoint the Chair of ALEC as an
Ex Officio Director.
The LiveCorp Board subsequently commenced
processes to implement the changes by the 2013 AGM.
A requisition was also received on 12 June 2013, in
accordance with the Constitution, requesting that an
election be held for the two Exporter Director positions.
The results of the election will be declared in 2013-14.
The approval of the refined Constitution finalises the
implementation of LiveCorp’s corporate efficiency plan,
which commenced in 2012 and has seen a reduction in
overheads from 29 percent of revenue in 2012-13 to
27 percent in 2013-14 (forecast) which equates to a
20 percent reduction in overheads from 2012-13 to 2013-14.
Strategic Plan
Aler the development and introduction of ESCAS in late
2011, the LiveCorp Board agreed that it was appropriate
to review the Strategic Plan to identify any refinements
that were required to reflect the changed operating
environment for the industry.
Detailed consultation with exporters then took place and
LiveCorp developed a plan that beder reflects the post-
ESCAS regulatory and operational environment. Lastly,
following consultation with the Minister for Agriculture,
Fisheries and Forestry the Strategic Plan was finalised
and placed on the LiveCorp website.
Performance Review
In accordance with the Statutory Funding Agreement
with DAFF and the LiveCorp Strategic Plan, a review
of the performance of LiveCorp has been commenced.
The Minister for Agriculture, Fisheries and Forestry
reviewed and approved the terms of reference.
The Performance Review must be completed no later
than 31 December 2013.
Annual Operating Plan
The AOP for 2013-14 was completed and provided to the
Minister for Agriculture, Fisheries and Forestry on 21
June 2013. The AOP is a confidential document that is
used for allocating yearly funding against the programs
and strategic objectives outlined in the Strategic Plan.
Annual General Meeting
The 2012 AGM was held in Fremantle in coordination with
the Western Australia Livestock Exporters Association
in November.
CORPORATE GOVERNANCE
“LiveCorp commiQed to
develop and implement
a plan to reduce
overheads through
improved efficiencies”
17
18
Other program outcomes:
RD&E program
The LEP RD&E program focuses on three
key strategies that form the basis of
LiveCorp’s 2013-2015 Strategic Plan:
Animal health and welfare
Supply chain efficiency and
regulatory performance
Market access and trade
development
The largest area of investment for the
RD&E program for 2012-13 was animal
health and welfare. Through RD&E it is
important for the industry to continually
develop projects to monitor outcomes
and improve animal health and welfare
through the whole supply chain.
Reflecting the role of regulation in the livestock export
industry and its potential impact on productivity, there
has also been an increased focus for the LEP RD&E
Program in supporting exporters to meet ESCAS
requirements through the development and piloting of
numerous training and resource materials (translated
into various languages), as well as the development of a
possible QA framework.
A summary of some of the key projects that have
commenced and/or were completed in the last year are
outlined below:
Animal health and welfare
Development of live export training programs
(Standard training modules)
Outcome developed:
In-market practical modular training materials for
animal welfare officers, trainers and stockpersons
handling Australian livestock based upon the
ESCAS animal welfare checklist.
Standard Operating Procedures
(developed in an earlier project).
Instructional DVDs for each of the supply chain elements
to correspond with the training modules and SOPs.
The resources developed are being translated into
various languages, including Arabic, Bahasa, Turkish,
Russian and Mandarin.
Managing sheep and caQle on board livestock ships
This project developed and produced instructional DVDs
on the management and handling of Australian cadle and
sheep on-board livestock vessels. The DVDs have now
been distributed to ship owners, exporters and other
relevant stakeholders.
Backgrounding and feedlot strategies to
address inanition in sheep
This project has electronically tracked and monitored
the feeding and drinking paderns of approximately
9,000 sheep in five periods, from September 2011 to
June 2012. The project will assist in the development of
strategies to improve adaption to the pelletised feed.
This project will be ongoing in 2013-14.
Livestock Air Transport Safety Assessment
(LATSA) solware
This project upgraded the LATSA solware. Empirical
data is currently being collected during consignments of
livestock by air which will be used to further validate the
predictions made by the solware.
Measuring heat load and management strategies
It consists of two projects that will gather data on heat
load in sheep exported to the Middle East. Data will be
collected on vessels, in feedlots and in climate controlled
laboratory situations. A key component of the project
will be the development of strategies and designs for
managing the risks of heat load.
DAM aQenuated Salmonella vaccine
This project will construct virulence adenuated
derivates of Salmonella dam vaccines that improve
vaccine safety, without compromising efficacy.
Additional adenuating mutations have been introduced
into the modified live Salmonella DAM vaccine to
reduce the risk of reversion to virulence and to assist in
regulatory approval to bring the vaccines into Australia
for further large animal research.
RESEARCH, DEVELOPMENT & EXTENSION
19
Regulatory approval to bring the vaccines into Australia
for vaccine research requires rigorous studies that
demonstrate a high level of vaccine safety and efficacy
with minimal toxicity. Achievement of these criteria
comprises the overall goal of the funded Salmonella
vaccine study: to develop a modified live Salmonella
vaccine that is safe, well-tolerated, and confers robust
cross-protection in vaccinated animals.
Antibiotic medication, in-water and in-feed treatment
of infectious ovine keratoconjunctivitis (IOK) in pre-
export feedlots
The project concluded that IOK is a treatable disease,
although the specific treatments vary depending upon
the severity of the condition. The project identified
recommended treatments and suggested that eye
inspections were particularly important in summer
months when IOK is more prevalent. Early identification
and treatment of the disease is beneficial in ensuring a
successful outcome in its management.
Refining stocking densities
This research project was undertaken to address the
knowledge gap that existed regarding the effects of
stocking density on the welfare outcomes of cadle and
sheep during sea transport. Two sheep voyages to the
Middle East and one cadle voyage to Indonesia were
conducted where three stocking density treatments
were investigated (ASEL, ASEL – 10% and ASEL + 10%
or the allometric allowance (0.027 x liveweight0.66),
whichever was greater).
It was concluded that the ASEL space allowances for the
stock classes investigated are appropriate on animal
welfare grounds.
Developing data collection systems for caQle
This project aims to produce valid and credible
descriptions of causes of death in long haul cadle
exported from Australia and to develop systems that
can be implemented by industry to describe causes of
death on an ongoing basis.
Review of sheep pre-embarkation inspection
procedures
The objective of this study was to conduct a review of
sheep inspection procedures during the pre-export
preparation phases that occur between the vendor
property and port for live sheep exported from South
Australia, Victoria and Western Australia. The study
compared the observed practices to the current ASEL
guidelines and standards. The report identifies the most
effective method of inspection (and rejection) of animals
in a manner that has the least potential adverse effect on
animal welfare.
Monitoring and evaluation of the HotStuff model
The purpose of this project was to collate and assess
relevant retrospective on-board data sets in order
to establish, implement, monitor and evaluate a data
collection to validate HotStuff predictions. This project
will be ongoing in 2013-14.
20
Supply Chain Efficiency
Dairy – A guide to dairy herd management
In October 2011 ’A guide to dairy herd management‘ was
developed as a best practice manual to assist in nutrition,
reproductive management, milk harvesting, heat stress
and general principals of dairy farm management. The
manual was translated into Mandarin, Russian, Urdu,
Bahasa and Turkish and will be distributed into the
respective markets that source Australian Dairy Cadle.
ASEL review scoping study
This project provided detailed information to support
industry’s input into the Australian Government’s ASEL
review. This included the published milestone report
detailing current research and knowledge relating to the
export of sheep to the Middle East from southern ports.
The primary output of this project will be to assess and
develop recommendations on best practice regulatory
reforms to ASEL, including an assessment of the R&D
underpinning the specific conditions in ASEL.
Data scoping study
This project is developing a discussion document
summarising the current understanding of methods used
by industry operators for collecting, storing, analysing
and using data related to animal health and performance
during export. The document will summarise a range
of related issues and present brief descriptions of
opportunities for improvements associated with
systems built to take advantage of advances in hardware
and solware. There is the potential for this project to
guide future developments in the routine monitoring
systems of animal health and performance.
Contingency planning review
This project is reviewing the risks and contingency
options that are available to the livestock export
industry during shipment. The project will develop a
contingency manual that will aid exporters in developing
individual consignment risk management plans.
This project will be ongoing in 2013-14.
ESCAS risk management and quality assurance
program development
This project is considering the feasibility and potential
structure/requirements of a risk management and
quality assurance program to complement (not
duplicate) ESCAS. This project will review existing
risk management and quality assurance systems
being used within the industry.
This project will be ongoing in 2013-14.
Market access and trade
development
China market access scoping study
This project will gather information on the technical
market access, trade and regulatory issues that are
relevant to exporting feeder / slaughter cadle to China.
The project will produce a scoping document that will
allow industry to develop a strategy for working with
parties in Australia and China to establish a beneficial
trade.
Intellectual property and the
commercialisation of RD&E
This project is to ensure intellectual property and its
ownership are decided and clearly defined at the time
of project set-up. This is managed by the LEP on behalf
of stakeholders. A plan for commercialisation and
extension of key outcomes of projects is determined to
ensure that deliverables are disseminated.
“There has also been
an increased focus for
the LEP RD&E through
the development and
piloting of numerous
training and resource
materials translated
into various languages.”
21
LiveCorp Services and Innovation
Documenting and reporting day to day
activities of the export supply chain are
a critical component in delivering against
the detailed regulations governing
the livestock export trade. LiveCorp’s
Services and Innovation Program
supports industry to increase its capacity
to meet and exceed existing standards,
regulation and reporting obligations.
It achieves this by providing training in livestock
handling and compliance requirements to on-board
stockpersons. The Services and Innovations program
also provides services to assist in the development of
improved information management systems to enhance
communication and create regulatory efficiencies.
In 2012-13, the Services and Innovation Program
supported the continuous improvement and
understanding of livestock management, health
and welfare through the delivery of an on-board
stockpersons’ training course with 22 participants.
LiveCorp also conducted an internal review of the
course and developed Terms of Reference for the
LiveCorp Services Review RD&E project to enhance
the delivery and resources associated with the
training of stockpersons, stevedores and other
supply chain participants.
The Services and Innovation Program also developed a
range of forms, templates and declarations to streamline
DAFF assessment and approval processes. For example,
the standard ESCAS application template delivered by
the Services and Innovation Program is estimated to
have generated a 30 percent saving in DAFF assessment
time, directly reducing exporter costs.
LiveCorp continues to consult with exporters and
seek feedback on services and innovation actions and
requirements. Activities undertaken during the year
include providing secretariat services to the breeding
livestock commidee, participating in the Protocol
Commidee, assisting with the development of the annual
operating plan and the planning and coordination of the
LiveCorp AGM and industry conference.
SERVICES AND INNOVATION
Livecorp training
services review
LiveCorp has been responsible
for providing training and
accreditation to stockpersons
servicing the livestock export
industry for more than 14 years
and has trained more than 400
people under its Stockperson
Accreditation Program.
The training program that is
in place has been continually
refined through ongoing
reviews and evaluations
and LiveCorp’s trainers are
highly experienced educators
commiQed to animal welfare.
LiveCorp firmly believes that this training
program has, and continues to meet the
needs of industry and government by
ensuring that the stockpersons responsible
for the care of livestock on-board vessels
have the necessary skills and training to
ensure animal welfare and regulatory
requirements are met.
As part of LiveCorp’s continual review
process, the LEP has commenced a
substantial RD&E project to review LiveCorp’s
existing training services and accreditation
process (for stockpersons, stevedores
and Saudi vaccinators) to identify possible
enhancements to the delivery methods/
formats, effectiveness and cost efficiency.
This RD&E project also demonstrates
that LiveCorp has addressed the
recommendations of the Farmer Review
that industry considers enhanced training
and mentoring programs for stockpersons
(Recommendation 5).
22
Dairy Industry Program
LiveCorp receives a voluntary levy of $3 per head
of dairy cadle exported. In 2012-13, the levy income
received was $133,324.
In 2012-13, LiveCorp initiated a regular teleconference
with dairy exporters to guide levy investment,
encourage contributions and report on relevant
investments within LEP and LiveCorp programs.
Key activities in 2012-13 include:
The continued roll-out of the Dairy Herd Management
Manual. The manual was translated into Bahasa,
Mandarin, Russian, Turkish and Urdu and distributed to
exporters and stakeholders.
Key market access activities were delivered by the
Industry Capability Program and included contributing
and liaising between industry and DAFF in relation to the
negotiation of health conditions for the Customs Union.
Other market priorities included supporting capability
improvements in the export of dairy cadle to Indonesia
and support for a technical industry delegation.
Coordination and contribution of industry advice on the
Australian Government’s breeding livestock policy.
The policy was published 30 April 2013 and
implementation is a key role for LiveCorp’s dairy
program moving forward. The Services and Innovations
Program also developed documents to support
the implementation process, including a standard
declaration form to address the policy’s due diligence
requirements.
RD&E continued to be delivered through the LEP, with
LiveCorp, MLA and Dairy Australia partnering on a dairy
cadle export stocktake project. The LEP also continued
or commenced research into premature lactation and
pink eye, respectively.
Regular teleconferences to review industry work
priorities and form industry positions on trade and
policy related issues associated with the dairy or
breeder export trade.
LiveCorp acknowledges that the voluntary levy
contributions are a reflection of the value and
commitment the exporters make and see in the
dairy export trade.
DAIRY PROGRAM
23
The Livestock Export Program (LEP)
LiveCorp partners with MLA in the LEP to deliver
animal welfare improvements in Australia and overseas
markets funded by Australian producers, exporters and
the Australian Government.
The LEP is widely recognised by LiveCorp members
as the most efficient mechanism for the delivery of
in-market services and RD&E in support of LiveCorp’s
strategic objectives.
In 2012-13, LiveCorp invested $1,180,000 – 36% of its
expenditure – in the LEP. This investment was in line with
LiveCorp’s 2013-15 Strategic Plan and 2012-13 Annual
Operating Plan (AOP).
The 2012-13 commitment to the LEP reflected a 163%
increase on 2011-12, during which LiveCorp had to
reduce its funding as a result of declining livestock
exports and levy revenue. The decline was a result of a
range of market factors across both sheep and cadle,
including the implementation of the Export Supply
Chain Assurance System (ESCAS); voluntary suspension
of various markets and import quota restrictions to
Indonesia. The increased commitment to the LEP
in 2012-13 allowed LiveCorp to match MLA’s funding
contribution to the LEP RD&E Program.
LiveCorp ensures good management and investment
of its contribution to the LEP through close
communications, collaborative planning processes and
leadership (the LiveCorp CEO and the MLA Livestock
Exports Manager co-manage the LEP).
MLA continues to be the majority partner in the LEP,
particularly in relation to in-market services. LiveCorp is
very appreciative of MLA’s ongoing commitment to the
livestock export industry and its strong partnership with
exporters and producers.
Collaboration – Other
In 2012-13, LiveCorp continued to identify opportunities
for further RD&E collaborations with Research and
Development Corporations (RDCs) through the LEP.
A key example was a joint collaboration with Dairy
Australia on a dairy heifer trade scoping study through
the LEP RD&E program. LiveCorp also maintained its
commitment towards priority cross-sectoral RD&E
strategies under the Primary Industries Ministerial
Council RD&E Framework, particularly where issues
aligned with industry priorities and budget availability.
In 2012-13, LiveCorp’s cross-sectoral RD&E
involvement included:
Continuing its membership on the Animal Welfare
RD&E Strategy Steering Commidee.
Agreeing to support Animal Health Australia
in the development of the Animal Biosecurity
RD&E Strategy.
A strong and active involvement in the Council of Rural
Research and Development Corporations (CRR&DC),
of which the LiveCorp Chairman is a member.
Unfortunately, due to the need to prioritise funds
towards delivery of industry priorities, particularly
animal welfare, LiveCorp was unable to maintain its
financial involvement in the Climate Change Research
Strategy for Primary Industries in 2012-13. However,
LiveCorp remains an interested stakeholder and valued
the outputs it received during its involvement.
COLLABORATION
“The LEP is widely
recognised by LiveCorp
members as the most
efficient mechanism for
the delivery of in-market
services and RD&E in
support of LiveCorp’s
strategic objectives.”
24
Compliance Report
LiveCorp’s current statutory Funding Agreement (SFA)
commenced on 1 July 2010 and is now in operation.
In accordance with schedule 2 of the Agreement,
the Board wishes to advise:
The Annual Report provides disclosure of the actions
and outcomes of the company in relation to the key
performance indicators included in the Strategic and
Operating Plans. Specific reports include:
a) The Operations reports included elsewhere in this
report provide information on performance against
goals outlined under the strategic and operating plans.
b) The Research and Development (R&D) report
includes:
The extent to which our R&D activities contribute
to the Commonwealth’s priorities for expenditure
on R&D projects and the achievement of public
benefits;
Collaboration with industry and other research
organisations;
Commercialisation of Research and Development;
Intellectual property creations; and
Agreements entered into relating to Research and
Development.
c) At the Annual General Meeting held in Perth on 13
November 2012 there were no changes to the Board
of LiveCorp or material changes to the Membership
of LiveCorp.
d) LiveCorp did not form any subsidiary companies
during the year. It did however continue to operate
the Livestock Export Program (LEP) in conjunction
with Meat and Livestock Australia.
e) The Advisory Services Agreement was renegotiated
with the Australian LivestockExporters’ Council.
f) A General Meeting was held in Brisbane on 12 June
2013 where the Members of LiveCorp voted in
support of Constitution amendments. The approved
amendments gave effect to a reduction in the size
of the Board. This changed Board structure will
commence post the 2013 AGM.
g) During the year the following reports and plans were
presented to the Federal Minister for Agriculture,
Fisheries and Forestry and the Department:
The compliance certificate in respect to LiveCorp
meeting the requirements of the SFA for the year
ended 30 June 2012, as per clause 17.4, was signed
by the Chairman on 29 October 2012 and forwarded
to the Department;
325 copies of the Annual report, as per clause 12.2,
were forwarded the Department on 29 October
2012; and
The half yearly financial reports, which included
statements of financial position clause 12.5(b) and
statements of financial performance clause 12.5(a)
were provided to the Department on 20 January 2013.
COMPLIANCE REPORT
Exporter Members and Associate
MembersAAA Livestock Services Pty Ltd
Agricon Services (Aust) Pty Ltd
Atlas Exports Pty Ltd
Austock Rural Pty Ltd
Australian Livestock Exports Pty Ltd
Australian Rural Exports (AUSTREX) Pty Ltd
Capricorn Pastoral (Davies Lander Pty Ltd)
Central Pacific Livestock Pty Ltd
Chevredor / L and R Bere-Streeter
Dairy Livestock Exports
DW Moyle, Basin Exports Pty Ltd
Elders International Australia Ltd
Emanuel Exports Pty Ltd
EMS Rural Exports Pty Ltd
Flinders International Pty Ltd
Global Livestock Corporation (Aus) Pty Ltd
Global Livestock Marketing Pty Ltd
Grant Agri (Australia) Pty Ltd
Halleen Australasian Livestock Traders Pty Ltd
Hedley John Exporters Pty Ltd
Hunter Livestock Export Services
HXA Pty Ltd
Independent Livestock Services
International Livestock Export Pty Ltd
Landmark Global Exports Pty Ltd
Landmark Operations Limited
Lembiru Livestock Pty Ltd
Livestock Australian Exports Pty Ltd
Livestock Shipping Services Pty Ltd
Mariah Hill Alpaca and Exports
North Australian Cadle Co Pty Ltd
Oceanic Cadle Stations Aust Pty Ltd
P&D Exports Pty Ltd
Samex Australian Meat Co Pty Ltd
South East Asian Livestock Services
Stockair Pty Ltd
Success Pastoral Co
Sugarbag (QLD) Pty Ltd
Surburton Livestock Export Pty Ltd
Total Livestock Genetics
Viscount Agricultural Developments Pty Ltd
Wellard Rural Exports Pty Ltd
Associate MembersExpo-Trade Pty Ltd
Hassad Australia Operations Company Pty Ltd
Pfizer Animal Health Australia
Rural Export and Trading (WA) Pty Ltd
Tintinabulla Pty Ltd
Industry MembersAustralian Livestock Exporters’ Council
New South Wales Livestock Exporters Association
Northern Territory Livestock Exporters Association
Queensland Livestock Exporters Association
South East Australian Livestock Exporters Association
Western Australian Livestock Exporters Association
MEMBERSHIP
27
Your directors present their report on LiveCorp for the year ended 30 June 2013.
Directors
The following persons were directors of LiveCorp during the whole of the financial year
and up to the date of this report:
Dr Raoul Nieper A.M.
Chairman
Qualifications
B.VSc (Hons), Grad. Dip. Bus. Admin, FAICD, FAIM
Experience
Dr Nieper has considerable experience in board positions. Dr Nieper was previously Chairman of Animal Health
Australia and formerly Director General of Queensland DPI. He is a veterinarian who has extensive experience at the
interface between government and industry. Dr Nieper has a demonstrated commitment to animal welfare issues and a
sound understanding of the live export industry.
Special Responsibilities
Dr Nieper is the Chairman of the Governance & Remuneration Commidee.
David Galvin
Non-Executive Director
Qualifications
Masters Degree in International Development Studies, Bachelor of Arts
Experience
Mr Galvin comes from an extensive rural background in the Northern Territory and overseas. He studied at the
University of Queensland, Deakin University and in the United States. He is the former CEO of Indigenous Land
Corporation (ILC), a position that he held for nearly 12 years before standing down in 2012. The ILC is a major beef
producer and has considerable pastoral holdings and pastoral enterprise agreements on the Indigenous held land
across Northern Australia to Tasmania. Mr Galvin was a Director of Voyages Indigenous Tourism Australia Pty Ltd and
currently a Director of Tubarao Investments Pty Ltd a property investment company.
Special Responsibilities
Mr Galvin is a member of the Finance, Audit & Risk Commidee.
David Jarvie
Non-Executive Director
Qualifications
B.VSc (Hons)
Experience
Mr Jarvie is a Veterinarian with 38 years experience in livestock export, meat and stockfeed manufacturing industries,
initially with Metro Meat Ltd as Live-export Manager and Divisional Manager for a regional abadoir in Geraldton,
and later as supervising export veterinarian with AQIS in Victoria. He is currently Group Veterinarian with Wellard Rural
Exports and General Manager Feeds and Animal Production. Mr Jarvie is a member of Biosecurity Council of Western
Australia and a member of management Commidee of Biosecurity Industry Funding Schemes for Cadle in Western
Australia.
Special Responsibilities
Mr Jarvie is a member of the Finance, Audit & Risk Commidee.
DIRECTORS’ REPORT
28
David Uebergang
Non-Executive Director
Experience
Mr Uebergang has had a life-long career in the agribusiness sector. He has over 40 years senior management
experience in the Elders Group of Companies at national and international levels. He has spent the last 20 years as
Livestock Export Manager for Elders International Australia Limited. Presently he consults to the Livestock Export
sector on new and developing markets.
Special Responsibilities
Mr Uebergang is a member of the Governance & Remuneration Commidee.
Malcolm Foster
Non-Executive Director
Qualifications
Bachelor of Technology in Mechanical Engineering, Graduate Diploma in Business Administration, FAICD.
Experience
Mr Foster has been associated with the meat and livestock industry for over 35 years. During this time he has managed
feedlots and meat processing plants in South Australia, New South Wales and Queensland. He has been associated with
the production, processing and the marketing of Australian grainfed beef in Asia, particularly Japan, for over 20 years.
In 2009, he retired from the position of Managing Director of Rangers Valley Cadle Station, a position he held for nearly
18 years. He was a director of the Australian Lot Feeders Association for 20 years and served as its President twice.
He is currently Chairman of the National Feedlot Accreditation Scheme and the President of the Australian Registered
Cadle Breeders Association.
Special Responsibilities
Mr Foster is a member of the Governance & Remuneration Commidee.
Terry Enright
Non-Executive Director
Experience
Mr Enright is a primary producer in the south of Western Australia and as well as operating a successful farming
operation with sheep, beef, cadle and grain, he has played a leading role in the administration of agricultural research
in the Grains industry. He chaired the Grains Research and Development Corporation for five years to 2007 and chaired
the Council of Rural Research Corporations for four years.
Mr Enright was chairman of the Albany Port Authority for ten years and has experience in development of Government
policy and port planning, having served as Chairman of the WA Port and Marine Authorities Association for three
years. He has experience in Government and stakeholder relations, industry strategic planning and animal production.
He retains a number of industry positions including Director of the Crawford Fund associated with international
agricultural research in the developing world.
Special Responsibilities
Mr Enright is the Chairman of the Finance, Audit & Risk Commidee.
DIRECTORS’ REPORT
29
Peter Kane
Non-Executive Director
Qualifications
B.Comm
Experience
Mr Kane retired in 2009 aler nearly 20 years with Austrade. During that time he was Senior Trade Commissioner at
five overseas posts – Seoul, Toronto, New Delhi, Milan and Kuala Lumpur. Mr Kane also held a number of management
positions in Australia.
In the late 1980’s Peter was Dalgety Australia’s European Manager, based in Hamburg. He has been Chairman of ALEC
since 2010.
Sam Brown
Chief Executive Officer
Qualifications
B Ag Sc (University of Melbourne)
Leadership Excellence Program in Department of Agriculture, Fisheries and Forestry
Experience
Mr Brown joined LiveCorp in October 2008 as the Industry Capability Manager of the joint Livestock Export Program.
He brought with him over six years of experience from within the Australian Government Department of Agriculture,
Fisheries and Forestry, where he held various roles across a broad range of agricultural industries.
These roles provided Mr Brown broad exposure to both federal and state legislative development and policy cycles
across a wide range of sectors, including grain, horticulture, meat, wool, dairy, AUSVET plan, and the Australian
Quarantine and Inspection Service.
30
Objectives and Strategies
LiveCorp’s objective is to enhance the livestock export industry’s sustainability and competitiveness by providing
support to Australia’s livestock exporters through marketing and R&D services along the livestock export industry
supply chain.
LiveCorp’s short and long term strategies are as follows:
Ongoing improvement in animal welfare outcomes.
Improve industry efficiencies, capabilities and livestock performance through the supply chain.
Through education and communication, build Government and community acceptance of the industry and increase
stakeholder awareness and satisfaction.
Assist and facilitate market access conditions and strengthen demand for Australian livestock.
Deliver member and stakeholder confidence and value through strong governance, planning, evaluation and review.
Comply with the Statutory Funding Agreement (“SFA”), which provides the major revenue source for the company.
These strategies are underpinned by R&D.
Principal Activities
The principal activities during the financial year were as follows.
1. Livestock Export Program (LEP) in conjunction with Meat and Livestock Australia (MLA).
This includes funding and management of agreed joint venture activities covering:
Trade Support & Market Access.
Animal Welfare programs in market.
Communications – Incident management & market intelligence
Research and Development.
2. Other Corporate Functions
Corporate Communications and Relationship Management – with industry, government and other stakeholder
groups.
Corporate Management – Further development of LiveCorp’s membership, funding and administrative
arrangements.
Application of corporate governance and compliance with the statutory funding agreement.
3. Issues Management
The focus of industry resources on issues of critical importance to the future of the livestock export trade, in
consultation with the industry peak policy body, the Australian Livestock Exporters’ Council (“ALEC”).
Operating Result
The profit of LiveCorp for the financial year amounted to $356,839 (2012: Profit of $502,321).
DIRECTORS’ REPORT
31
Performance Measures
The strategic plan for 2012-2015 has been completed.
LiveCorp’s performance against its strategic and operating plans takes into account:
a) The performance of LiveCorp in meeting its obligations under the SFA.
b) The implementation of annual operating plans and strategic plans and the effectiveness of LiveCorp in meeting the
targets and budgets set out in those plans; and
c) The delivery of benefits to the industry foreshadowed in those plans.
KPI’s have been developed to monitor performance against the strategic themes. In addition over the planning period,
LiveCorp will increase its information and data collection activities to further bolster its monitoring and measurement
of progress against individual projects and programs.
LiveCorp’s overall performance takes into account the delivery of the below:
a) The performance of LiveCorp in meeting its obligations under the SFA – reviewed twice annually by the
Department of Agriculture, Fisheries and Forestry, including in 2013, and at both times LiveCorp was found to
have complied with the SFA. A formal survey of 2012-13 AOP performance is currently underway.
b) The development and implementation of annual operating plans (AOP) – measured by adherence to budget and
stakeholder survey. Stakeholder feedback in 2012-13 showed a level of strong satisfaction, rating the provision of
services as adding value to their business.
c) The maintenance of strategic plans – measured by stakeholder and government signoff. The 2013 – 2015 strategic
plan was completed with Minister signoff in early 2013, this plan replaces the 2010 – 2014 strategic plan.
d) Independent performance reviews of delivery of benefits to the industry foreshadowed in the above plans.
LiveCorp is constantly measuring and improving the organisation’s performance. The key measures include regularly
surveys of stakeholder satisfaction and an external performance reviews that are undertaken every three years.
These outcomes are communicated to the members and stakeholders on an annual basis.
Meetings of Directors
Directors Directors’ Meetings CommiQee Meetings
Finance, Audit & Risk Governance &
Remuneration
Number eligible to adend
Number adended
Number eligible to adend
Number adended
Number eligible to adend
Number adended
Raoul (Roly) Nieper 5 5 - - 2 2
David Uebergang 5 4 - - 2 2
David Jarvie 5 5 3 3 - -
David Galvin 5 4 3 3 - -
Terry Enright 5 5 3 3 - -
Malcolm Foster 5 5 - - 2 2
Peter Kane 5 5 - - - -
32
Significant Staff Changes
On 23 February 2013, Sam Brown was promoted from Acting Chief Executive Officer to Chief Executive Officer.
Members’ Guarantee
Australian Livestock Export Corporation Limited is a company limited by guarantee. If LiveCorp is wound up,
the constitution states that each member is required to contribute a maximum of $100 towards any outstanding
obligations of LiveCorp. At 30 June 2013 the number of members was 42 (2012: 41) and the maximum amount which
could be contributed is $4,200 (2012: $4,100).
Auditor’s Independence Declaration
A copy of the Auditor’s independence declaration, as required under section 307C of the Corporations Act 2001,
is set out on page 33.
Signed in accordance with a resolution of the Board of Directors:
Dr. Raoul Nieper A.M. Terry Enright
Director Director
Dated this 20th day of August 2013
DIRECTORS’ REPORT
33
AUDITOR’S INDEPENDENCE DECLARATION
AUSTRALIAN LIVESTOCK EXPORT CORPORATION LIMITED
ABN 88 082 408 740
AUDITOR’S INDEPENDENCE DECLARATION
To the Directors of Australian Livestock Export Corporation Limited
As lead auditor for the audit of the financial report of Australian Livestock Export Corporation Limited for the year
ended 30 June 2013, I declare that to the best of my knowledge and belief there have been no contraventions of:
(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
D K Swindells
Partner
20 August 2013
Sydney
HLB Mann Judd (NSW Partnership) ABN 34 482 821 289
Level 19 207 Kent Street Sydney NSW 2000 Australia l Telephone +61 (0)2 9020 4010 l Fax +61 (0)2 9020 4190
Email: mailbox@hlbnsw.com.au l Website: www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd l NSW Partnership l is a member of International. A world-wide network of independent accounting firms and business advisers
34
Note 2013
$
2012
$
Revenues from continuing operations 2 3,632,027 3,477,667
Direct costs (59,147) (80,508)
3,572,880 3,397,159
Consultancy expense (583,396) (554,056)
Depreciation and amortisation expense (11,070) (52,685)
Director & staff related expenses (912,875) (1,129,361)
Joint program expenses 3 (1,180,000) (448,910)
Occupancy expense (53,872) (224,420)
Travel costs (158,104) (265,936)
Other expenses from ordinary activities (316,724) (219,470)
Profit (loss) before income tax 356,839 502,321
Income tax expense 1(b) - -
Profit (loss) 356,839 502,321
Other comprehensive income - -
Total comprehensive income 356,839 502,321
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 30 June 2013
35
As at 30 June 2013
BALANCE SHEET
Note 2013
$
2012
$
Current Assets
Cash and cash equivalents 5 719,187 578,870
Trade and other receivables 6 716,280 641,391
Other current assets 7 38,135 30,668
Total Current Assets 1,473,602 1,250,929
Non-Current Assets
Financial assets 8 1,704,357 1,355,061
Property, plant and equipment 9 19,117 23,579
Other non-current assets 7 58,760 58,760
Total Non-Current Assets 1,782,234 1,437,400
Total Assets 3,255,836 2,688,329
Current Liabilities
Trade and other payables 10 719,228 516,365
Employee entitlements 11 47,599 30,746
Make-good provision 35,000 -
Total Current Liabilities 801,827 547,111
Non-Current Liabilities
Employee entitlements 11 - 9,048
Make-good provision - 35,000
Total Non-Current Liabilities - 44,048
Total Liabilities 801,827 591,159
Net Assets 2,454,009 2,097,170
Equity
Retained earnings 2,454,009 2,097,170
Total Equity 2,454,009 2,097,170
The above balance sheet should be read in conjunction with the accompanying notes.
36
For the year ended 30 June 2013
STATEMENT OF CHANGES IN EQUITY
Retained Earnings
$
Balance at 30 June 2011 1,594,849
Total comprehensive income 502,321
Balance at 30 June 2012 2,097,170
Total comprehensive income 356,839
Balance at 30 June 2013 2,454,009
The above statement of changes in equity should be read in conjunction with the accompanying notes.
37
For the year ended 30 June 2013
STATEMENT OF CASH FLOWS
Note 2013
$
2012
$
Cash Flows from Operating Activities
Receipts from customers 3,291,189 3,778,207
Payments to suppliers and employees (2,891,539) (4,315,896)
Dividends received 63,651 56,640
Interest received 34,447 40,122
Net cash provided by (used in) operating activities 13(a) 497,748 (440,927)
Cash Flows from Investing Activities
Purchase of property plant & equipment (8,135) (14,362)
Proceeds from sale of investments (349,296) 576,435
Net cash provided by (used in) investing activities (357,431) 562,073
Repayment of borrowings
Net increase in cash held 140,317 121,146
Cash and cash equivalents at the beginning of the year 578,870 457,724
Cash and cash equivalents at the end of the year 5 719,187 578,870
The above statement of cash flows should be read in conjunction with the accompanying notes.
38
For the year ended 30 June 2013
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the material accounting policies adopted in the preparation of the financial report.
The accounting policies have been consistently applied, unless otherwise stated.
a) Basis of Preparation
The financial report is a general purpose financial report that has been prepared in accordance with the Australian
Accounting Standards, Australian Accounting Interpretations and the Corporations Act 2001. Australian Livestock
Export Corporation Limited is a company limited by guarantee.
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation
of selected financial assets for which the fair value basis of accounting has been applied.
Compliance with IFRS
The financial report of LiveCorp complies with Australian equivalents to International Financial Reporting Standards
(“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
b) Income Tax
LiveCorp is exempt from income tax under section 50-40 item 8.2 of the Income Tax Assessment Act 1997.
c) Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation
and impairment losses.
The carrying amount of property, plant and equipment is reviewed annually by directors to ensure that it is not in
excess of the recoverable amount of these assets. The recoverable amount is assessed on the basis of the expected
net cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash
flows have been discounted to their present values in determining recoverable amounts.
Office Equipment is depreciated on a straight line basis. Leasehold improvements are depreciated on a straight line
basis over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
Computer Equipment and Plant and Equipment is depreciated on a diminishing value basis.
The depreciation rates used for each class of depreciable asset are:
Class of Fixed Asset Depreciation Rate
Leasehold Improvements 20%
Office Equipment 20%
Computer Equipment 37.5%
Plant & Equipment 25%
39
d) Financial Instruments
Recognition
Financial assets at fair value through profit or loss
A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so
designated by management. Realised and unrealised gains and losses arising from changes in the fair value of these
assets are included in profit or loss in the period in which they arise.
Held-to-maturity investments
These investments have fixed maturities, and it is LiveCorp’s intention to hold these investments to maturity.
Held-to-maturity investments are stated at amortised cost using the effective interest rate method.
Available-for-sale financial assets
Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale
financial assets are recognised at fair value. Unrealised gains and losses arising from changes in fair value are taken
directly to equity.
Fair value
The company has complied with Accounting Standard AASB7 Financial Instruments: Disclosures which requires
disclosure of fair value measurements by level of the following fair value measurements hierarchy:
(i) Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1),
(ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(as prices) or indirectly (derived from prices) (Level 2), and
(iii) Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
Fair value for all financial assets at fair value through profit or loss is determined as follows:
(i) Listed fixed interest securities: at published bid prices ie Level 1.
(ii) Investments in unlisted managed funds: at exit prices published by fund managers ie Level 2.
(iii) Cash and term deposits: at cost
(iv) Other fixed interest securities: at exit prices published by fund managers ie Level 2.
Fair value for all financial assets at fair value through profit or loss is determined as follows:
(i) Listed fixed interest securities: at published bid prices ie Level 1.
(ii) Investments in unlisted managed funds: at exit prices published by fund managers ie Level 2.
(iii) Cash and term deposits: at cost
(iv) Other fixed interest securities: at exit prices published by fund managers ie Level 2.
e) Impairment of Assets
At each reporting date, LiveCorp reviews the carrying values of its assets to determine whether there is any indication
that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher
of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the
asset’s carrying value over its recoverable amount is expensed to profit or loss.
40
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued
f) Research and development
Expenditure on research is recognised as an expense when incurred.
g) Employee Benefits
Provision is made for LiveCorp’s liability for employee benefits arising from services rendered by employees to balance
date. Employee benefits that are expected to be sedled within one year have been measured at the amounts expected
to be paid when the liability is sedled, plus related on-costs. Employee benefits payable later than one year have been
measured at the present value of the estimated future cash outflows to be made for those benefits.
Provision for Long-term Employee Benefits
A provision has been recognised for employee benefits relating to long service leave for employees. In calculating the
present value of future cash flows in respect of long service leave, the probability of long service leave being taken is
based upon historical data.
h) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrals. Bank overdrals are shown within
short-term borrowings in current liabilities on the balance sheet.
i) Revenue
Revenue from the collection of levies is recognised upon the export of livestock.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Dividend revenue is recognised when it is received.
All revenue is stated net of the amount of goods and services tax.
j) Goods and Services Tax (“GST”)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred
is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown
inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and
financing activities, which are disclosed as operating cash flows.
k) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
l) Trade receivables
Trade receivables are recognised at the amount invoiced and are generally due for sedlement within 30 days.
m) Trade & other payables
These amounts represent liabilities for goods and services provided to the company prior to the end of the financial
year which are unpaid. The amounts are unsecured and usually paid within 30 days of recognition.
For the year ended 30 June 2013
NOTES TO THE FINANCIAL STATEMENTS
41
Note 2013
$
2012
$
2. REVENUE
Revenue
Statutory levies 2(a) 3,002,490 3,365,686
Dividends received 63,651 56,640
Interest received 34,447 40,122
Other revenue 2(b) 531,439 15,219
Total Revenue 3,632,027 3,477,667
a) Statutory Levies
Marketing Levies 2,508,829 2,793,535
R &D Levies 493,661 572,151
3,002,490 3,365,686
Levy income remained suppressed in 2013 due to historically low levels of import permits in Indonesia, the loss of
Bahrain and reduced export activity in Saudi Arabia, Turkey and Egypt.
b) Other revenue:
Voluntary Dairy Levies 133,324 95,796
Revaluation of Investments 95,481 (98,676)
Other income 302,634 18,099
531,439 15,219
3. JOINT PROGRAM EXPENSES
Expenses
Live Export Program
Market Access 62,400 23,022
Trade Development 72,000 -
Animal Welfare 416,800 -
Communications 28,800 -
Industry Capability - -
Research & Development 600,000 425,888
1,180,000 448,910
4. AUDITORS’ REMUNERATION
Remuneration of HLB Mann Judd (NSW Partnership)
for auditing the financial report 21,750 20,000
42
For the year ended 30 June 2013
NOTES TO THE FINANCIAL STATEMENTS
2013
$
2012
$
5. CASH AND CASH EQUIVALENTS
Cash at Bank 719,187 578,870
6. TRADE AND OTHER RECEIVABLES
Current
Trade receivables 358,319 115,579
Other receivables 357,961 525,812
716,280 641,391
7. OTHER ASSETS
Current
Prepayments 38,135 30,668
Non-Current
Rental guarantee deposit 58,760 58,760
8. FINANCIAL ASSETS
At fair value through profit or loss:
Listed fixed interest securities 379,948 212,738
Unlisted managed funds 1,054,359 839,800
Cash unlisted fixed interest securities and term deposits 270,050 302,523
1,704,357 1,355,061
43
2013
$
2012
$
9. PROPERTY, PLANT AND EQUIPMENT
Office and computer equipment
At cost 87,470 87,100
Accumulated depreciation (69,277) (65,000)
18,193 22,100
Plant and equipment
At cost 9,462 9,462
Accumulated depreciation (8,538) (7,983)
924 1,479
Leasehold improvements
At cost - 90,218
Accumulated depreciation - (90,218)
- -
Total plant and equipment 19,117 23,579
Furniture and
FiQings
$
Plant and
Equipment
$
Leasehold
Improvements
$
Total
$
Movements in Carrying Amounts
Movement in the carrying amounts for each
class of property, plant and equipment:
Balance at 1 July 2011 41,499 2,366 18,037 61,902
Additions 14,362 - - 14,362
Disposals - - - -
Depreciation expense (33,761) (887) (18,037) (52,685)
Balance at 30 June 2012 22,100 1,479 - 23,579
Additions 8,135 - - 8,135
Disposals (1,527) - - (1,527)
Depreciation expense (10,515) (555) - (11,070)
Carrying amount at 30 June 2013 18,193 924 - 19,117
44
2013
$
2012
$
10. TRADE AND OTHER PAYABLES
Current
Unsecured Liabilities
Payables and accrued expenses 664,912 255,161
Other liabilities 33,538 119,893
Termination of lease 20,778 114,280
Lease incentive in advance - 27,031
719,228 516,365
11. EMPLOYEE ENTITLEMENTS
Current
Annual leave 47,599 30,746
Non-Current
Long service leave - 9,048
For the year ended 30 June 2013
NOTES TO THE FINANCIAL STATEMENTS
45
2013
$
2012
$
12. CAPITAL AND LEASING COMMITMENTS
a) Operating Lease Commitments
Minimum lease payments, payable:
- Within 12 months 26,388 47,256
- Later than 12 months but not later than five years 37,135 17,567
63,523 64,823
Operating Lease
Commitments include a sub-lease of premises.
The sub-lease has no fixed term.
The commitment disclosed is for the period of the lessor’s lease for the premises.
b) Other Commitments
Service agreement – ALEC
- Within 12 months 231,250 231,250
Publication
- Within 12 months - -
- Later than 12 months but not later than five years - -
231,250 231,250
c) Research & Development Expenditure Commitments
Payable:
- Within 12 months 600,000 600,000
- Later than 12 months but not later than five years - -
600,000 600,000
46
For the year ended 30 June 2013
NOTES TO THE FINANCIAL STATEMENTS
2013
$
2012
$
13. CASH FLOW INFORMATION
a) Reconciliation of Cash Flows from Operations with
x Profit aler Income Tax
Profit aler income tax 356,839 502,321
Profit on Reserve - -
Depreciation 11,070 52,685
(Increase)/decrease in trade debtors (74,889) 90,305
(Increase)/decrease in other assets (7,467) 14,947
Increase/(decrease) in trade creditors 202,863 (1,074,933)
Increase/(decrease) in provisions 7,805 (26,252)
Loss on disposal of property, plant and equipment 1,527 -
Cash flows from Operations 497,748 (440,927)
b) Credit Standby Facilities
LiveCorp has a facility within investments held to enable a cash recall as required within 3 working days.
14. CAPITAL MANAGEMENT
LiveCorp’s capital is its retained earnings. The capital is managed by the Board, which acts to ensure that LiveCorp has
sufficient capital to fund its progress, program commitments and debts as they fall due.
15. COMPANY DETAILS
The registered office and principal place of business of LiveCorp are at:
Australian Livestock Export Corporation Limited
Level 4, 165 Walker Street
North Sydney NSW 2060
47
DIRECTORS’ DECLARATION
In the directors’ opinion:
1. The financial statements and notes, as set out on pages 34 to 46, are in accordance with the Corporations Act 2001,
including:
a) complying with Accounting Standards and the Corporations Regulations 2001; and
b) a true and fair view of the company’s financial position as at 30 June 2013 and of it’s performance for the
period ended on that date; and
2. There are reasonable grounds to believe that the company will be able to pay its debts as and when they become
due and payable.
The notes to the financial statements include a statement of compliance with International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Directors.
Dr. Raoul Nieper A.M.
Director
Terry Enright
Director
Dated this 20th day of August 2013
48
INDEPENDENT AUDITOR’S REPORT
AUSTRALIAN LIVESTOCK EXPORT CORPORATION LIMITED
ABN 88 082 408 740
AUDITOR’S INDEPENDENCE REPORT
To the members of Australian Livestock Export Corporation:
We have audited the accompanying financial report of Australian Livestock Export Corporation (“the company”),
which comprises the statement of financial position as at 30 June 2013, the statement of profit or loss and other
comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended,
notes comprising a summary of significant accounting policies and other explanatory information, and the directors’
declaration for the company.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the financial report
that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in
accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical
requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about
whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating
the overall presentation of the financial report.
Our audit did not involve an analysis of the prudence of business decisions made by directors or management.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
HLB Mann Judd (NSW Partnership) ABN 34 482 821 289
Level 19 207 Kent Street Sydney NSW 2000 Australia l Telephone +61 (0)2 9020 4010 l Fax +61 (0)2 9020 4190
Email: mailbox@hlbnsw.com.au l Website: www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd l NSW Partnership l is a member of International. A world-wide network of independent accounting firms and business advisers
49
AUSTRALIAN LIVESTOCK EXPORT CORPORATION LIMITED
ABN 88 082 408 740
AUDITOR’S INDEPENDENCE REPORT (continued)
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
We confirm that the independence declaration required by the Corporations Act 2001, given to the directors of
Australian Livestock Export Corporation on 20 August 2013, would be in the same terms if provided to the
directors as at the time of this auditor’s report.
Auditor’s Opinion
In our opinion, the financial report of Australian Livestock Export Corporation is in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the company’s financial position as at 30 June 2013 and of its performance
for the year ended on that date; and
b) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the
Corporations Regulations 2001.
HLB MANN JUDD
Chartered Accountants
D K Swindells
Partner
Sydney
20 August 2013
HLB Mann Judd (NSW Partnership) ABN 34 482 821 289
Level 19 207 Kent Street Sydney NSW 2000 Australia l Telephone +61 (0)2 9020 4010 l Fax +61 (0)2 9020 4190
Email: mailbox@hlbnsw.com.au l Website: www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd l NSW Partnership l is a member of International. A world-wide network of independent accounting firms and business advisers
50
AUDIT COMPLIANCE REPORT
AUSTRALIAN LIVESTOCK EXPORT CORPORATION LIMITED
ABN 88 082 408 740
AUDIT COMPLIANCE REPORT
To the members of Australian Livestock Export Corporation Limited
Scope
This audit opinion is a supplement to the audit opinion issued on pages 48 and 49.
We have conducted a compliance audit in relation to the year ended 30 June 2013 for the purposes of the Funding
Agreement (“the Agreement”) commencing 1 July 2011 between the Commonwealth of Australia (“the Commonwealth”)
and Australian Livestock Export Corporation Limited (“LiveCorp”) and acknowledge that our report will be relied upon
by the Commonwealth.
Our audit was conducted to enable us to express an opinion to the Members of LiveCorp and to the Commonwealth.
We disclaim any assumption of responsibility for any reliance on this report to anyone other than the Members of
LiveCorp and to the Commonwealth.
Our audit has been conducted in accordance with Australian Auditing Standards. Our procedures included examination,
on a test basis, of evidence as to whether LiveCorp has complied with its obligations under Clauses 7 and 8 of the
Agreement during the year, and included a review of the efficiency of the accounting systems, processes and controls
contemplated by Clause 7.
The audit opinion expressed in this report has been formed on the above basis.
Auditor’s Opinion
In our opinion, Australian Livestock Export Corporation Limited has complied with its obligations under
Clauses 7 and 8 of the Agreement during the year ended 30 June 2013.
HLB MANN JUDD
Chartered Accountants
Sydney
20 August 2013
HLB Mann Judd (NSW Partnership) ABN 34 482 821 289
Level 19 207 Kent Street Sydney NSW 2000 Australia l Telephone +61 (0)2 9020 4010 l Fax +61 (0)2 9020 4190
Email: mailbox@hlbnsw.com.au l Website: www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd l NSW Partnership l is a member of International. A world-wide network of independent accounting firms and business advisers
51
LIVESTOCK EXPORTS BY DESTINATION 2012-13
COUNTRY VOLUME MARKET %
CaQle Sheep Goat CaQle Sheep Goat
Argentina 8
Bahrain 62,250 3.0
Brunei 6,193 985 1.0 1.6
China 59,235 127 9.3
Egypt 15,300 2.4
Indonesia 271,328 28 42.8 0.0
Israel 67,224 74,088 10.6 3.6
Japan 11,178 1.8
Jordan 9,000 343,894 1.4 16.7
Kazakhstan 2,213 0.3
Kuwait 693,265 33.7
Libya 6,900 1.1
Malaysia 38,548 24,371 57,446 6.1 1.2 92.5
Mauritius 5,461 0.9
New Zealand 3 9 20
Norfolk Island 1 5
Oman 35,368 1.7
Pakistan 8,327 1.3
Philippines 36,978 877 5.8
Qatar 2,768 588,078 0.4 28.6
Russian Federation 36,328 5.7
Saudi Arabia 3,550 69,000 0.6 3.4
Singapore 3,778 3,152 0.2 5.1
Sri Lanka 1,502 0.2
Thailand 8
Turkey 35,609 125,067 5.6 6.1
UAE 111 37,500 373 1.8 0.6
Uruguay 27 4 45 0.1
USA 9 21
Vietnam 15,903 2.5
Total 633,703 2,057,685 62,075
TOTAL BY REGION VOLUME MARKET %
Asia 168,043 29,153 61,583 26.51 1.42 99.20
Indonesia 271,328 - 28 42.82 - 0.05
Middle East 140,462 2,028,510 373 22.17 98.58 0.60
Other 53,870 22 91 8.50 - 0.15
633,703 2,057,685 62,075
52
AGM Annual General Meeting
ALEC Australian Livestock Exporters’ Council
AOP Annual Operating Plan
ASEL Australian Standard for the Export of Livestock
CCA Cadle Council of Australia
CRR&DC Council of Rural Research & Development Corporations
DAFF Department of Agriculture Fisheries and Forestry
ESCAS Exporter Supply Chain Assurance System
ICWP Industry Collaborative Welfare Program
IGIG Industry Government Implementation Group
IOK Infectious Ovine Keratoconjunctivitis
LiveCorp Australian Livestock Export Corporation Limited
LATSA Livestock Air Transport Safety Assessment
LEP Livestock Export Program
LEIPC Livestock Export Industry Protocol Commidee
LERDAC Livestock Export Research and Development Advisory Commidee
MENA Middle East and North Africa
MISP Meat Industry Strategic Plan
MLA Meat and Livestock Australia
MOU Memorandum of Understanding
NAMP National Arbovirus Monitoring Program
OIE World Organisation for Animal Health
R&D Research and Development
RD&E Research, Development and Extension
RDC Research and Development Corporation
RMAC Red Meat Advisory Council
SEA South-East Asia
SCA Sheepmeat Council of Australia
SFA Statutory Funding Agreement
SOP Standard Operating Procedures
LIST OF ABBREVIATIONS
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