DairyCo Meeting Minutes

Transcription

1 DairyCo Meeting Minutes Meeting: DairyCo Board DSB10/03 Date: 5 May 2010 Venue: Dunston Hall Hotel, Norwich Present: In Attendance: Apologies: Distribution: Tim Bennett (Chair)(TB), Kevin Beaty (KB), Kenneth Campbell (KC), Neil Cutler (NC), Richard Davis (RD), Julia Hawley (JH), David Homer (DH), Stewart Jamieson (SJ), Trevor Lloyd (TL), Ian Martin (IM), Jonathan Vickers (JV). Ken Boyns (KJB), Wendy Jackson (WDJ), (Amanda Ball (AB), Diane Cannon (DC),George Fisher (GF), Kevin Kendall (KK), Philippa Stagg (PS), Marco Winters (MW), Karen Wonnacott (KW))(All in part) Arthur Reeves As Above plus Tom Taylor and Sue Walker at AHDB DSB10/03/01 DSB01/03/02 DSB10/03/03 DSB10/03/04 DSB10/03/05 Welcome and Apologies The Chairman welcomed the Board to the meeting and apologies were received from Arthur Reeves. Minutes from the Last Meeting The minutes from the meeting held on 17 & 18 March 2010 had been circulated and suggested changes had been received. The minutes were agreed with the suggested changes. Matters Arising An action list had been previously circulated. It was stressed that communication to members of Regional Forums must be copied to members of the Board. Conflicts of Interest JH declared her interest in undertaking freelance work liaising with schools. It was noted that all farmer Board members had an interest with HUK. Trevor Lloyd noted his Directorship of NMR. Chairman s Report PS 1 of 9

2 DSB10/03/06 The Chairman had previously circulated a written report. TB reported on excellent productive meetings with Scottish Government and NFUS and the Dairy Steering Group in Wales. TB commented that Delyth Davies was proving to be an excellent addition to the Management Team. Director s Report KJB reported on an issue in the technical dairy press the previous week relating to organic sales data which was criticised. KJB was confident that the data was accurate and the issue appeared to have been resolved. KJB reported on a meeting with the NFU Next Generation Dairy Board on the Agri Skills Forum Plan. The Group would like DairyCo to fund a Continuous Professional Development or similar scheme for farmers but to date no commitment had been made. It is likely that a paper will be presented to the Board at the July meeting. The High Level Group on Milk Contracts are likely to introduce a European Code of Practice or similar on milk contracts. KJB reported that the key issue will be if there is a change of price, the farmer should be able to come out of the contract. KJB updated the Board on HR matters. First interviews had taken place for the Head of R&D and second interviews would be planned shortly. Interviews are being arranged for the Genetics Manager. MI are still understaffed with a further member of staff leaving shortly. Andrew Birnie is currently looking at moving an analyst from the red meat section of MI to DairyCo and interviews are taking place to recruit a senior analyst. RD suggested that where appropriate Datum should be updated more frequently than the currently monthly information, in particular when the markets are changing rapidly. It was agreed that a lack of qualified staff should be included on the risk register as an on-going problem. It was noted that Elizabeth Berry would be attending the Kite trip to the USA. It was agreed that a written report on the trip as well as a report on the Mastitis Conference in New Zealand is included in the Information section of the Board Pack. KJB D SWALES KJB EB/WDJ It was agreed that the Farmer Intentions Survey is discussed at the July meeting when the new MI Manager, David Swales would be in attendance. D SWALES 2 of 9

3 Risk Register KJB reported that the Risk Register had been updated reflecting a downgrade in risks around the finance system and corporate governance. Risks around Purdah had been added and the issue of a possible levy payer vote in DSB10/03/07 Annual Report Contribution & Annual Survey Update PS joined the meeting. The Chairman s Annual Report Contribution had been previously circulated and it was noted that this was in line with the AHDB template. There were concerns that the report did not reflect all the work by DairyCo for the year. It was agreed that TB and PS review the content of the report before submitting to AHDB. PS gave a presentation of the results of the Annual Survey. It was agreed the results needed to be fed into the corporate planning process. It was agreed that PS provide detail of the survey to the Board members. It was suggested that a closed section on the website is developed for Board members to access restricted information. PS to investigate. There was a concern expressed that Datum is not easily accessible in particular to farmers in areas without broadband. It was agreed that the format that the information is being sent out needed to be reviewed to enable easier access. TB/PS PS PS PS KJB gave a presentation and review of the progress of DairyCo over the last 12 months. DSB10/03/08 Issues & Image Management (I&I) Strategy and Implementation Plan 2010/2011 AB and DC joined the meeting. A paper outlining the plan had been previously circulated and a presentation was given to the Board. The education curriculum is now focussed on child-led teaching. This has resulted in DairyCo reviewing the method of promoting messages with a recommendation to shift levy payers funding on this activity. It is recommended to move the resources from a school milk team to using other organisations. This would result in more effective use of levy payers funds to get the message into schools. It was noted that an implication of this recommendation, subject to staff consultation, would be that the school milk team are made redundant. 3 of 9

4 AB reported that the intention is to work closely with Food a Fact of Life and other delivery partners to disseminate the DairyCo message. AB to provide the Board with a breakdown of the budget and details of how success will be measured (management targets and KPI s). AB The approval being sought from the Board is to move activity from introducing milk into schools to educating children of school age about dairy farmers and farming across GB. AB reported that the proposal to evaluate the activity is to provide short quarterly reports plus web statistics and tracking of key consumer attitudes. It was agreed by the Board to cease the school milk activity in its present format subject to staff consultation. Approval was given to move the levy payer resources from a school milk team to the recommended activity using other organisations as outlined in the discussion. The detailed budget and methods of measuring success would be available by the July meeting. The need for effective planning of the communication of the decision was stressed and it was agreed that Board members are fully briefed beforehand. KJB/AB AB/PS AB, DC and PS left the meeting at this point. DSB10/03/09 Approval of Projects Genomics MW joined the meeting and gave a presentation to the Board. A paper had been previously circulated. In order to provide genomic evaluations in the UK, it was noted that funding was required in order to expediate delivery of SAC software. Further new investment would also be necessary to provide additional bull genotypes. MW stressed the importance of increasing the bull reference population in order to gain reliable information. It was noted that AI companies were reluctant to give information to DairyCo which was used to develop a genomic key which may then become accessible to farmers who could potentially set up their own AI company in direct competition. It may therefore be necessary to consider restricted access to the genomic key and KJB and MW were consulting with Michael 4 of 9

5 Fogden on the legal aspects related to restriction. It was pointed out that restricted access would not affect the majority of farmers or levy payers. It was stressed that if DairyCo did not invest in the development of genomic evaluations, it is unlikely that it will be developed by another organisation in the UK. MW reported that an agreement was being drafted between interested UK parties with an aim to commence on 1 October The recommendations were discussed as follows: That negotiations continue to establish a UK consortia to enable official genomic evaluations to be carried out by DairyCo through its genetic evaluation service provider SAC by mid 2011 Board agreed. That genomic evaluations for cows are available to all, but restricted access to bull genomic evaluations may be needed, depending on the route taken Board agreed, subject to the exact restriction being agreed by the Board first. The development of genomic evaluations may have to exclude certain industry partners if no agreement can be reached by December 2010 Board agreed but added that all industry parties should be very actively encouraged to come on board MW to continue discussions with industry parties. Discussions to continue with international owners of bull genotypes to explore access to their resource for use in UK genomic evaluations, which may require a significant investment of DairyCo funds Board supportive but Board to agree any detailed proposal before any final agreement reached. MW At this point MW left the meeting. GHG Measurement and Approach Karen Wonnacott joined the meeting. A paper had been previously circulated and KW gave a presentation to the meeting. It was highlighted that in order to provide robust statistical information on the average GHG emissions from GB dairy farms, it would be ideal to have 415 farms using all systems to be carbon footprinted. KW reported that the possibilities of funding opportunities with other organisations were being 5 of 9

6 investigated to assist with the project and some interest had been shown. However, it was felt that any approach for funding to partners which had the prior support of the DairyCo Board would be likely to be more successful. It was noted that tool providers selected to undertake the carbon footprinting would be PAS and Carbon Trust accredited. It was also pointed out that there would be breaks incorporated into any contracts with tool providers to be used in the event that changes in policy or science, or measurement methodology occur which meant the project should not run its full course. After discussion, the Board agreed to approve up to 100K per annum for three years towards setting a baseline of on-going GHG emission measurement/footprinting for GB dairy farms. Additional funding required to be sought from other organisations eg DARDNI, WAG, Scottish Government, Defra etc in order to achieve 415 farms. KW to action. KW The proposed DairyCo statement on approach to GHG emissions and Dairy Farming was approved with one minor amendment. KW left the meeting at this point. DSB/10/03/11 Management Accounts and Finance Report Kevin Kendall joined the meeting. Management accounts for March 2010 had been previously circulated. KK pointed out that the figures were still in draft format pending year end. Combined total income at 6.77m was 367k higher than budget due to the higher Milk Production during the year. Combined total operating expenditure at 5.82m was 645k lower than budget for the period. The forecast that was presented to the Board in January was 5.85m so we have ended the year as expected. In overall terms, DairyCo generated a surplus of 509k for the period, compared to a budgeted surplus of 5k. It was noted that income and expenditure were in line with the forecast provided at the last Board meeting. Non operating expenditure showed a difference mainly due to AHDB transition costs. Differences between budgeted figures and actual were highlighted in the bridging analysis paper. A question was raised on the change in the cost compared to forecast shown for strategic support and management and KK agreed to investigate and come back to the Board. 6 of 9 KK

7 It was commented that the accounts were once again late in being circulated to Board members. KK replied that there was an intention to implement a timetable where the accounts will be completed on the 10 th working day of the month and circulated thereafter. KK pointed out that monthly management accounts will not be produced for April due to year end and April/May accounts will be available for circulation after the 10 th working day of June. It was agreed that accounts are circulated to Board members after 12 th working day of each month after June. KK DSB/10/03/12 Finance Session A paper had been previously circulated showing comparison figures for Cirencester v Stoneleigh costs. It was noted that back office costs were lower than in Cirencester, but other support costs (eg Chief Scientist) meant total costs were higher. However, the additional support provided added value. Aged debtors analysis showed 130K worse than the previous year and KK reported that action was being taken to recover aged debts. TB raised the legal right to increase levy after a certain number of days of non payment and why this was not being utilised. KJB reported that himself and Shaun Tillery were currently taking legal advice from Michael Fogden on this issue and would come back to the Board on the matter in the near future. It was agreed that the Board should be supplied with details of reasons why every debt over 120 days had not been settled. KK to action. KK reported on the bad debt by Dairy Farmers of GB. The Board felt that this had been highlighted as a risk prior to liquidation of the company and systems should be put in place to ensure that this does not occur again in the future. It was agreed that the central support costs needed to be reviewed at the next meeting due to disquiet from Board members on the level of central charge levied. As agreed by the Chief Executive at the July Strategy Session 2009, it was agreed again that a note is included on the published accounts within the Annual Report and Accounts document with regard to pension fund liabilities being ringfenced. KK/KJB agreed to this request. KJB/ST KK KK/ST KK/ST KJB/KK/ST 7 of 9

8 DSB/10/03/10 KK left the meeting at this point. TB left the meeting at this point and RD took the Chair. Competitive Dairy Farming GF joined the meeting and following a short presentation to the Board by KJB, GF gave a presentation on the paper which had been previously circulated. Input from the Board was requested on the Strategies outlined which had been put forward by the Research Advisory Forum. Within each strategy, specific work themes had been identified which needed to be prioritised through discussion at the meeting in July. Following the Board discussion in July, the intention was to develop the plan for the business plan approval in September. GF gave an outline of 4 Strategies which had been identified by the RAF and the work themes within those Strategies. TB asked the Board to consider these Strategies and work themes and submit their views by to GF and KJB within the next month. ALL The Board expressed that they were happy with the current Strategies as they were being developed and if there was a fifth Strategy on genetics, then this would be acceptable. On behalf of the Board, thanks were expressed to both KC, as Chair of the RAF and GF for the excellent work put into the document outlining the Strategies for consideration. GF left the meeting at this point. DSB/10/03/13 Any Other Business There being no further business, RD closed the meeting. The Date of the Next Meeting was noted as 13/14 July 2010 at Cricklade Hotel & Country Club, Cricklade, Wiltshire. The Board Dinner will be the evening of 13 July. 8 of 9

9 Signed... Date... Tim Bennett Chairman Details of next meeting: Board Dinner 13 July 2010 Venue: Cricklade Hotel & Country Club 7:30pm for 8.00 pm Board Meeting & Strategy Session 13/14 July 2010 Venue: Cricklade Hotel & Country Club 9 of 9