President’s Report

Iam pleased to put forward the Annual Report for the Droughtmaster Stud Breeders’ Society Limited for the financial year ended 31 March 2020.

Operating Result The Operating Profit of the Society amounted to $38,384 and the Net Income after Appropriations and Extraordinary Items was $128,936. A number of items of note include:

legal expenses well exceeded estimates – our independent auditor noted that significant legal expenses from the previous year continued into the financial year ended 31 March 2020, stemming from legal advice sought in the lead up to the 2019 AGM; the BIN Steer research project – in the reported year, the Society purchased 2 consignments of steers and sold 4 consignments of steers, contributing to non-operating income, given this is a research project; and the Society continued to make a $20,000 annual provision for Animal Health Management – although the Society’s independent auditor has noted that the Society’s amended Terms and Conditions for 2020 Society Sponsored Sales now mitigate this risk and as a result this provision may no longer be required; and the strong financial position allowed for the write down of some Society merchandise – which was considered well overdue.

The financial position of the Society is strong, especially considering the extremely tough period of drought that was felt in the reported period, and is still continuing in some parts of the country. The activities of the Society detailed in the financial records have mainly been focussed on growing and promoting the Droughtmaster breed, improving member engagement, encouraging participation of younger generations and identifying growth opportunities – whilst remaining compliant with our responsibilities.

Of particular focus ...

Society General Manager Recruitment

In October, a national search resulted in the appointment of Simon Gleeson to the position of General Manager of the Society. Simon has nearly 20 years’ experience in agriculture, finance, commercial and corporate strategy, natural resources, membership-based organisations and sports administration and has injected new energy into the role. Much of Simon’s introduction to the role has focussed on the foundational requirements of the Society and refreshing our approach.

Foundational Requirements

Strategic Plan A Strategic Planning exercise that included surveying members resulted in the compilation and release of our Strategic Plan “The Road Ahead” to the membership in November 2019. The Strategic Plan has guided the Board and Society’s activities in future proofing the Society, solidifying our position as one of Australia’s most valuable cattle breeds and creating a valued membership experience.

President’s Report

Todd Heyman President

Society policies and efficiency The Society undertook a number of initiatives in the financial year ended 31 March 2020 aimed at improving the way we do business:

The development and approval of an updated Delegation and Authority Policy;

The onboarding of EmploySure to update the

Society’s policies and procedures, employee handbook, employment contracts, and staff job descriptions. EmploySure have also conducted a Health and Safety Audit for the Society;

The implementation of a new accounting system for the Society (from MYOB to

Xero), to improve financial management and reporting structures; and

The commencement of development of new Sub-Committee charters, to clarify and improve the way in which sub-Committees (such as Sale sub-Committees) work with the office, the Board and across the membership. Corporate Sponsorship – Asahi & Droughtmaster Lager

In October 2019, the Society executed a sponsorship deal with Asahi Breweries attached to the Droughtmaster Lager product launched in mid-2019. This sponsorship deal included a cash component from Asahi Breweries to the Droughtmaster Stud Breeders Society, a quantity of Droughtmaster lager product for use at sales and events, and a contribution towards a joint promotional video / advertorial cofunded between the Society and Asahi Breweries.

The Society looks forward to building a much stronger relationship between Asahi and our members over the coming years. The Board, through the General Manager, is investigating other corporate sponsorship options, with the intention being that they not only generate income to support our sales, events and activities, but also offer mutually beneficial arrangements where possible.

Expansion of BREEDPAN data In the context of discussions concerning performance data, the Board also agreed that Droughtmaster BREEDPLAN data will include data from the Repronomics and BIN steer project. To date, the Repronomics Project has generated more than 5,800 calves representing more than 320 sires from 119 different stud prefixes. Of these, close to 2500 are Droughtmaster by around 130 sires. The female animals have female fertility measurements as well as carcase, temperament, structure and many other important traits as well as a DNA profile. The BIN Project is a collaboration project between the Droughtmaster Stud Breeders’ Society Limited, Australian Brahman Breeders Association and a consortium of Santa Gertrudis breeders. This project purchases the steer portion of the Repronomics project cattle and follows them through to slaughter, collecting important data including Carcase scanning measurements for p8, Rib fat, EMA and IMF, along with weights and structural soundness measurements prior to slaughter. All steers are MSA graded in the abattoir and a meat sample sent to the meat science lab in Armidale for IMF, tenderness and meat colour measurements. This meat science data is the first data collected for the breed that will be included in the BREEDPLAN analysis.

Breed White Paper As many would remember, earlier this year, the Board and General Manager requested that Tropical Beef Technology Services (TBTS) develop a White Paper for distribution to members discussing DNA testing, genetic technologies, genetic conditions and relevant project work involving Droughtmasters. This White Paper has been distributed to members and is available on the website outlining: • Background information about DNA testing and its current application within the beef industry,

• Straightforward definitions of terms commonly used in the genomics era e.g. reference population, single-step, • A description of the many benefits of collecting performance information (phenotypes) and testing to understand the genetic makeup of an animal (genotyping), and • An outline of key research projects involving and benefiting the Droughtmaster breed (Repronomics, Northern BIN). Beyond the period reported in this Annual Report, there has been a continued focus on growing and promoting the Droughtmaster breed, improving member engagement, encouraging participation of younger generations and identifying growth opportunities. I would like to express both mine and the Board’s appreciation for the efforts and achievements of the General Manager and office staff over the last year. Many of the Society’s activities would not be possible without your patience, planning and astute, professional advice. Finally, it is hopefully apparent to members that the period disclosed in this Annual Report covers the start of a period of renewed positive vigour for the breed. In this vein, I would like to once again thank the many naturally positive and enthusiastic members who have continued to contribute to Society Committees, initiatives across the country and for your ongoing part in promoting the breed, its qualities and its future. As always, members are encouraged to contact their Zone or National Directors should there be anything they wish to raise with the Board.

Todd Heyman

DROUGHTMASTER 2020 SNAPSHOT