business and agree to supply lambs on a long term basis. A sales and marketing team is employed to develop a marketing strategy and seek out premium markets. Create a market Sheep producers have the option The New Zealand Merino environment that to sell lambs directly to an Company Limited (NZM) is an fosters the overseas customer or a marketing integrated sales, marketing, and development of company that specialises in innovation company in NZ, with marketing WA lamb and seeking growers as shareholders. NZM marketers/brokers out premium markets or high transacts ~85% of all Merino paying customers. wool grown in NZ with two-thirds through direct supply contracts, some of which extend up to five years. Franchising A business establishes a breeding Blade Farming (UK) works line and production process to closely with farmers to help them produce high quality lamb to meet rear and finish cattle to a a specific premium market. consistent and high specification Farmers contract to raise and grow for high value markets. Farmers out lambs to set specifications. sign forward price commitments Prices are contracted in with backed by the abattoir they processor. Business invests in supply and pay Blade a franchise marketing to receive premium fee as the cattle are slaughtered. price. Dedicated supply Involves the partnership of Foods, one of New chains from businesses along the whole supply Zealand's largest red meat paddock to plate chain so they all are motivated to exporters, has formed producer work together to operate a highly groups that are dedicated to efficient and profitable chain. supplying and working with its customers, for example Waitrose. Section 3 potential investor structures/investment – models This section highlights some structures on how capital could be sourced, pooled and invested across the supply chain to grow the sheep industry in Western Australia. Examples include: Setting up a research and development (R&D) company that invests in genetics, technology or processing to increase productivity and also benefits from R&D tax concessions. Giving Australians the option to elect to invest superannuation into an agricultural or regional development fund. Funds can then be invested in sheep enterprises that can provide a commercial return.
business and agree to supply lambs on a long term basis. A sales and marketing team is employed to develop a marketing strategy and seek out premium markets. Create a market environment that fosters the development of marketers/brokers Sheep producers have the option to sell lambs directly to an overseas customer or a marketing company that specialises in marketing WA lamb and seeking out premium markets or high paying customers. The New Zealand Merino Company Limited (NZM) is an integrated sales, marketing, and innovation company in NZ, with growers as shareholders. NZM transacts ~85% of all Merino wool grown in NZ with two-thirds through direct supply contracts, some of which extend up to five years. Franchising A business establishes a breeding line and production process to produce high quality lamb to meet a specific premium market. Farmers contract to raise and grow out lambs to set specifications. Prices are contracted in with processor. Business invests in marketing to receive premium price. Blade Farming (UK) works closely with farmers to help them rear and finish cattle to a consistent and high specification for high value markets. Farmers sign forward price commitments backed by the abattoir they supply and pay Blade a franchise fee as the cattle are slaughtered. Dedicated supply chains from paddock to plate Involves the partnership of businesses along the whole supply chain so they all are motivated to work together to operate a highly efficient and profitable chain. Foods, one of New Zealand's largest red meat exporters, has formed producer groups that are dedicated to supplying and working with its customers, for example Waitrose. Section 3 – potential investor structures/investment models This section highlights some structures on how capital could be sourced, pooled and invested across the supply chain to grow the sheep industry in Western Australia. Examples include: Setting up a research and development (R&D) company that invests in genetics, technology or processing to increase productivity and also benefits from R&D tax concessions. Giving Australians the option to elect to invest superannuation into an agricultural or regional development fund. Funds can then be invested in sheep enterprises that can provide a commercial return.
Concepts%20for%20alternative%20investment%20%26%20financing%20models%20to%20expand%20sheep%20production%20in%20WA.docx