President’s Report

Annual Report 2021

Annual Report 2021

1 President’s Report 4 CEO’s Report 6 Directors’ Report 8 Directors’ Declaration 9 Registrar’s Report 10 Sales and Events Report 11 Marketing Report 16 Statement of Comprehensive Income 18 Statement of Financial Position 19 Movements in Equity 20 Notes to the Financial Statements 26 Auditor’s Report 28 Compilation Report

PRESIDENT’S REPORT

Todd Heyman | President Dear Members,

FOLLOWING WHAT was a tumultuous year for many of us, the Board is pleased to present the Annual Report for the Droughtmaster Stud Breeders’ Society for the financial year ended 31 March 2021.

Up front, I would like to thank our Committees, volunteers and staff for their commitment to the Society over the reported period. Your dedication and hard work have enabled us to continue building on the momentum of our Strategic Plan - The Road Ahead, which focuses on future proofing the Society.

Around the uncertainty of COVID lockdowns and border closures, and not being sure what the future held, the Society stepped up and forged ahead to deliver the objectives of its Strategic Plan and offered members access and participation in all of the Society’s scheduled events.

Financial Result

The profit for the Society including Net Income after Appropriations and Extraordinary Items was $6,707. A number of items of note include:

•Inventory fees - Leading into the 202021 year, members may remember that no increase was applied to membership fees, inventory fees and the breed promotional levy on the basis that many members had experienced several successive drought affected seasons.

This measure was aimed at shifting some financial pressure, however minor, from members to the Society, and preserving female inventory through the drought. As such, some categories of income were lower in the reported year;

PRESIDENT’S REPORT (CONTINUED)

•Employment expenses – the Board has committed to a three-year Strategic

Plan that aims to solidify our position as one of Australia’s most valuable cattle breeds and create a valued membership experience. The increase in employment expenses in the reported year reflects the Society’s commitment to delivering the priorities contained within the Plan;

•The BIN Steer research project – the

BIN Steer research project has provided the Society with invaluable research since 2013. It also reflects in and has contributed to the Society’s non-operating income and expenses over this period. In some previous years, the consignments of

BIN Steers sold have made a significant positive contribution toward the Society’s financial position. The research project’s impact on the Society’s financial position in the reported year was negligible; • The Society’s amended Terms and

Conditions for Society Sponsored Sales have mitigated the Animal Health risks that previously required the Society to make a $20,000 annual provision. Indeed, the Society has released $40,000 of this provision in the reported year; • Legal expenses - Even though legal expenses for the Society for the reported year were higher than expected at $27,547, it is worth reflecting on the significant decrease in expenditure in this category.

In each of the previous financial years, this expense category has exceeded $60,000; • Meeting costs have decreased significantly on previous years; • Government Cash Flow Boost – the

Society benefitted significantly from the Commonwealth Government’s cash flow boost to support small and medium businesses and not-for-profit organisations during the economic downturn associated with COVID-19;

•The Society committed a further $40,000 toward promoting the breed at Beef 2021; and

•The financial position allowed for a further write down of some Society merchandise.

The focus activities of the Society over the 2020-21 financial year included:

•A review of our brand strategy which resulted in a refresh of the brand along with the implementation of a new and modern website.

•Updated and improved communication and promotional mediums both internally and externally.

•Onboarding and negotiating corporate partnerships with: – Newstead Brewing, – Ariat Australia, – Just Country Australia, – Australian Community Media and – Morgans Financial Services.

•Initiation and coordination of the production of a new promotional video (“Our Story”) which was launched in November 2020.

•Identifying key risks in the business and putting mitigation strategies in place to protect the business which included new Terms and Conditions for Society Sponsored Sales. • Coordinating the rollout of further

BREEDPLAN traits to the membership. • Employing two new staff (Events and

Office Services Coordinator & Member

Services and Office Coordinator)

PRESIDENT’S REPORT (CONTINUED)

•Overseeing the running of all

Society Sponsored Sales. • Developing a White Paper to inform members on the background of DNA testing and its current application within the beef industry. • Managing operational plans and budgets to deliver on key initiatives and to drive growth of the Droughtmaster breed and memberships.

•Continuing to manage deliverables during COVID-19 which required staff to work from home for an extended period of time (3 months).

The overall position of the Society detailed in the financial statements and this Annual Report should be interpreted by the membership as reflecting a shift in culture, activity and initiatives toward promoting our Droughtmaster cattle as Australia’s natural wonder.

As members may appreciate, the 202021 financial year was like no other, with many challenges. The Board would like to acknowledge the efforts of its Chief Executive Officer, staff and volunteers in its delivery of the above achievements.

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, President on behalf of the Board of Directors