Droughtmaster Strategic Plan 2025 - 2027

STRATEGIC PLAN 2025 - 2027

1

STRATEGIC PLAN 2025 - 2027: DATA. GROWTH. LEGACY.

CEO’s MESSAGE

2

DROUGHTMASTER AUSTRALIA INSIGHTS

5

RISKS TO DROUGHTMASTER AUSTRALIA

11

FUTURE AHEAD

12

OPPORTUNITIES FOR MEMBERSHIP & INVENTORY GROWTH

14

SOCIETY SALES, EVENTS & ACTIVITIES

15

STRATEGIC PRIORITIES

16

FRONT COVER: STACEY FORD PHOTOGRAPHY

2

DROUGHTMASTER – AUSTRALIA’S NATURAL WONDER

At Droughtmaster Australia, we are proud to be leading the way in building a sustainable and prosperous future for our members. Central to this vision is the power of data and therefore over the next few years we will be focusing on genetic improvement, unit costs of production and validating and improving meat quality - allowing us to improve productivity, measure performance, and meet the evolving demands of our markets with confidence and transparency.

We are equally committed to inspiring the next generation of agricultural leaders by expanding participation of new and younger members as well as school-based agricultural programs and educational initiatives. By fostering engagement with young minds, we aim to ensure the future of our industry, and our breed, is in skilled, innovative, and capable hands.

As we look to grow our geographical footprint, both in Australia and internationally, we recognize the unique qualities of the Droughtmaster breed and, in particular, the value of the Droughtmaster female as the cornerstone to any beef producer’s herd. Her adaptability, fertility, and resilience make her indispensable to producers navigating increasingly variable environments as well as changes in economic conditions.

Together, these pillars (along with others)—data-driven progress, youth engagement, domestic and global expansion, and the enduring strength of the Droughtmaster female—will underpin our strategic direction as we strive to build on the legacy of this exceptional breed and ensure its continued success for generations to come.

Simon Gleeson, Chief Executive Officer

SETTING THE SCENE GLOBAL SUPPLY CHALLENGES

• U.S. and Brazil facing beef production declines due to

drought in 2024, climate pressures, and herd reductions— creating export opportunities for Australia.

RECORD DOMESTIC PRODUCTION

• Australian beef production projected to hit record levels in 2025, supported by a stable national herd and increased carcass weights.

• Strong domestic demand forecasted • Favourable seasonal conditions forecasted for 2025 STRONG EXPORT DEMAND

• Increased demand from key markets like

the U.S. (due to its supply shortages) and Asia, positioning Australia as a leading beef exporter.

4

DROUGHTMASTER – AUSTRALIA’S NATURAL WONDER

Cliff & Sasha Mylrea, Needmor Catte Co, Gogango, Qld

Ken & Kerry McKenzie, Yaralla, Blackwater, Qld

Nobbs Cattle Co, Duaringa, Qld (Droughtmaster Cross)

Ed & Carol McCormack, Dilga Glenmorgan, Qld

5

STRATEGIC PLAN 2025 - 2027: DATA. GROWTH. LEGACY.

DROUGHTMASTER AUSTRALIA SNAPSHOT

727 2006

SOCIETY ESTABLISHED 1962

RECOGNISED AS A QUEENSLAND ICON

SOCIAL MEDIA FOLLOWING

9,527

2,593

TOTAL MEMBERS

4

GYMPIE

SOCIETY SPONSORED SALES EACH YEAR

ROCKHAMPTON

5

ROMA

STAFF

ONLINE

SOCIETY SPONSORED SALES HAVE GENERATED AN AVERAGE ANNUAL AGGREGATE TURNOVER OF $6,885,190 FOR THE LAST 3 YEARS

1,886

N OF BULLS SOLD AT AUCTION EACH YEAR O

39,003 N OF REGISTERED FEMALES O

EST.

1962

19

NO OF ON-FARM & PRIVATE DROUGHTMASTER SALES EACH YEAR

NO OF MEMBERS WHO HAVE ORDERED DNA TESTS VIA THE SOCIETY

WE HAVE REACHED SINGLE STEP STATUS

2024

FIGURES AS AT 05/02/2025

2023

QUANTITY OF TESTS

375 13,925 386 12,096

6

DROUGHTMASTER – AUSTRALIA’S NATURAL WONDER

DROUGHTMASTER AUSTRALIA FEMALE INVENTORY Female Inventory as at August (OVER 20 MONTHS) 40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0 2002

2003

2004

2005

2006

2007

Strategic Plan Implementation Points

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

The Road Ahead Strategy

2022

2023

The Next Phase Strategy

2024 2025(F)

Data. Growth.

Legacy.

Strategy

7

STRATEGIC PLAN 2025 - 2027: DATA. GROWTH. LEGACY.

2025 DROUGHTMASTER AUSTRALIA MEMBERSHIP

519 MEMBERS

727 MEMBERS

8

DROUGHTMASTER – AUSTRALIA’S NATURAL WONDER

THE NEXT PHASE STRATEGY 2023 - 2025 COMMITMENTS AND OUTCOMES Breed Development ACTIONS

Marketing & Promotion ACTIONS

Sales, Events & Activities

Society Projects

Member Engagement

ACTIONS

ACTIONS

ACTIONS

Transition to Single Step • Improved Data Capture (eating quality, carcass performance, feed program performance) Communicate BIN Project Results BREEDPLAN Incentives Development of commercial market indicies.

Benefits of the Droughtmaster female Strategic partnerships Suitability to multi-markets Droughtmaster beef Commercial performance and sustainable and natural production (both grass and grain fed) Testimonials and case studies Bull and female sales Benefits of cross breeding.

Strategically targeted locations Investment & improvements to existing sales, events & activities • Increased commitment to school agricultural programs and provide content for their curriculums.

Improvements to office facilities • Diversified income streams Financial management and Investment Business model improvements Staff training & development • R&D funding for various projects.

Celebrate our people Heighten the appeal of being a member • Provide members with educational content to assist with operating their businesses Regular and efficient communication.

OPERATING OUTCOMES

OPERATING OUTCOMES

OPERATING OUTCOMES

OPERATING OUTCOMES

OPERATING OUTCOMES

Transition to Single Step Improved Data Capture (eating quality, carcass performance, feed program performance) Communicate BIN Project Results BREEDPLAN Incentives Development of commercial market indicies.

Increased registrations Membership growth Growth in our geographical footprint Increased demand for Droughtmaster Bulls and Females Increased awareness of the quality and demand for Droughtmaster beef Less reliance on BIN Project Income.

Increased registrations Growth in our geographical footprint • Increase in the number of schools using Droughtmaster cattle in their curriculum • Income to subsidise labour costs for Society Sponsored Sales.

Improved operational efficiency Growth and sustainability of the Society • Additional Income Streams • Commitment to ESG.

Member retention and improvements in value to members Member satisfaction.

9

STRATEGIC PLAN 2025 - 2027: DATA. GROWTH. LEGACY.

PURPOSE & AMBITION DROUGHTMASTER AUSTRALIA

• A cattle breed that consistently

performs to a high standard despite adverse environments, continually producing high quality and high yielding carcasses economically.

PURPOSE

• Promote, develop and protect the

breed and the brand, identify activities that will further increase breed participation; and

• Enhance membership of the Breed

Society, by delivering more efficient services, benefits and value.

AMBITION

• To be recognised nationally

throughout the entire supply chain (paddock to plate) as a breed that was developed in Australia to suit the Australian environment for its versatility and consistently high meat quality.

MESSAGE FROM THE PRESIDENT “It is with great pleasure that I share our vision focused on data, growth, and legacy. By embracing innovation and empowering the next generation, we are ensuring the resilience of our breed and its enduring value to our members, beef producers and consumers.

Together, we will continue to build on the strength of the Droughtmaster heritage to create a thriving future.”

Steve Farmer

10

DROUGHTMASTER – AUSTRALIA’S NATURAL WONDER

OUR VALUES

Accountable to the highest ethical standards, demonstrating honesty, professionalism and sincerity.

Striving for excellence, taking responsibility for our actions and decisions.

Empowering others to reach their potential, demonstrating unity, humility, grace and gratitude.

Creating an environment whereby curiosity, challenge and innovation is encouraged.

11

STRATEGIC PLAN 2025 - 2027: DATA. GROWTH. LEGACY.

RISKS TO DROUGHTMASTER AUSTRALIA Political & Economic Environment

Cattle Prices

Seasonal Conditions

Social Licence To Operate

MLA Funding & Continuation of the Bin Research Project

Market Preferences

Genetic Advances In Other Breeds

PHOTO BY OLIVIA WRIGHT

12

DROUGHTMASTER – AUSTRALIA’S NATURAL WONDER

FUTURE AHEAD AUSTRALIA, IT’S TIME TO ASK FOR DROUGHTMASTER BEEF

DROUGHTMASTER BEEF TASTING NOTE

Droughtmaster cattle are Australia’s natural wonder. It’s an iconic beef breed with a reputation that is underpinned as a sustainable and natural source of protein. The beef can be served as grassfed, or grain assisted where it boasts an earthy, hearty flavour with a tenderness that will melt in your mouth.

Droughtmaster beef is incorporated by beef brands enjoyed across the country and widely used in households, restaurants, hotels, and clubs. It is enjoyed with an array of salads or vegetables, complemented with a nice red wine or a premium lager.

In September 2024, Nolan Meats processed 257 purebred Droughtmaster cattle averaging an MSA index of 59.50 with the highest animal grading 63.47 placing it in the top 1%.

This outstanding result compared against the average national MSA Index of 57.52.

13

STRATEGIC PLAN 2025 - 2027: DATA. GROWTH. LEGACY.

FUTURE AHEAD Increased recognition of the quality of Droughtmaster beef

Continued growth in female registrations and membership

SHELLY HAWKINS, HERBERTVALE STATION

Expansion and advancement of the breed locally and globally

Data-driven marketing

Genetic improvement

More training and learning opportunities for members

Opportunities through sales, events, and activities to amplify member visibility and value

Diversified income streams

14

DROUGHTMASTER – AUSTRALIA’S NATURAL WONDER

OPPORTUNITIES FOR MEMBERSHIP & INVENTORY GROWTH DARWIN

VIETNAM

BRISBANE

PERTH SYDNEY

PACIFIC ISLANDS

ADELAIDE CANBERRA MELBOURNE

HOBART

Opportunities for Stud & Commercial Growth

(stud & commercial members)

Opportunities for Commercial Growth (commercial members)

Opportunities for Stud Growth (stud members)

AFRICA

EXPANSION/PARTNERSHIP OPPORTUNITIES

STRATEGIC PLAN 2025 - 2027: DATA. GROWTH. LEGACY.

SOCIETY SALES, EVENTS & ACTIVITIES • National Bull Sale (Australia’s Largest Multivendor Sale) • Roma Bull Sale • National Female Sale • Commercial Female Sale • Private sales (members)

• BEEF2027, Rockhampton • Ekka - Royal Queensland Show, Brisbane • FarmFest, Kingsthorpe • AgQuip - Gunnedah, NSW • Droughtmaster Futurity, Toogoolawah • Droughtmaster Feature Show, Toowoomba • Casino Beef Week, NSW

• Gympie Beef Group Cattle Camp • Northern Beef Producers Expo, Charters Towers • The Norman Hotel's Best Breed Competition • WA Youth Cattle Camp • Young Beef Producers Forum, Roma

15

16

DROUGHTMASTER – AUSTRALIA’S NATURAL WONDER

STRATEGIC PRIORITIES Data

Growth & Marketing

Legacy

Projects

Members

ACTIONS

ACTIONS

ACTIONS

ACTIONS

ACTIONS

• A focus on Meat Standards Australia (MSA) - data for analysis • Improved accuracies in BREEDPLAN • Field days and information sessions for members in conjunction with BIN & Repronomics Projects • Support and facilitate the inclusion of additional data and information in sale catalogues • Commercial Competitions Feedlot & Carcass • Economic data to validate costs of production comparative to other breeds.

• Promote Droughtmaster beef/cattle using data and analysis from MSA and Feedlots • Promote the Droughtmaster female as the cornerstone in any beef producer's herd • Promote the natural and sustainable characteristics of the breed • Create further strategic partnerships • Expand our marketing with a greater geographical footprint • Testimonials and case studies • Create new concepts to promote bull and female sales.

• Increased commitment to school agricultural programs and provide content for their curriculums • Creation of learning modules for new members relating to sale preparation, showing, and general animal husbandry • Educational content available for members and support younger members participating in workshops, conferences and field days.

• Commission a study to analyse the unit costs of production for Droughtmaster cattle comparative to other breeds • Create stronger relationships with countries using Droughtmaster genetics to help grow the breed internationally • Staff training & development • Source R&D funding • Alternative income streams • Business model improvements.

• Celebrate our people • Heighten the appeal of being a member • Regular and efficient communication • Adopt Modern Communication Strategies.

OPERATING OUTCOMES

OPERATING OUTCOMES

OPERATING OUTCOMES

OPERATING OUTCOMES

OPERATING OUTCOMES

• MSA data to improve meat quality, enhance consumer confidence, market access and differentiation, higher producer returns and strengthen breed reputation

• Growth in female registrations • Membership growth • Droughtmaster cattle occupying a larger geographical footprint • Increased demand for Droughtmaster Bulls and Females • Greater awareness of the quality and demand for Droughtmaster beef.

• Greater involvement by schools using Droughtmaster cattle in their curriculum and at the Futurity • Members equipped with educational content to assist with improvements to their businesses • Growth in Next Gen.

• A better understanding of the economics relating to Droughtmaster beef production comparative to other breeds

• Member retention and improvements in value to members • Member satisfaction.

• Grow BREEDPLAN participation across the membership • Continuation of both BIN & Repronomics Projects • Utilisation of data to improve confidence for stud & commercial buyers.

• Skilled staff • Additional Income Streams • Growth and awareness of Droughtmaster genetics internationally • Efficiency in operations.

STACEY FORD PHOTOGRAPHY

SIMON GLEESON Chief Executive Officer