ACG General Delegates Meeting

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ACG General (Delegates) Meeting 14 October
2008 60th Anniversary Year
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gt Overview of presentation
gt Summary of work on industry structure
strategy since 2005 gt Special Resolution, for
Delegate discussion and decision
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gt The Reasoning

• gt 2005 ACG Members resolved -
• that ACG undertake a broad review of existing
  industry structures to meet the needs of a modern
  export orientated industry.
• gt Department of Agriculture, Fisheries and
  Forestry (DAFF) funding was secured.
• gt 2005 KPMG chosen to conduct independent
  review. Identifies
• Three structural options (Single Structure,
  Multi-Structure and Status Quo)
• Development of a national strategic plan prior
  to any restructure

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gt The Reasoning (cont.)

• gt 2006 Further DAFF funding to support
  development of
• industry plan and to consider industry structure,
  
• resources and skills
• gt 2006 Citrus 2015 - industry's strategic plan
  developed
• gt Existing reports, reviews, plans etc
• gt Consultation with over 100 industry
  stakeholders.
• Face-to-face telephone focus groups workshops
  surveys
• gt Supply chain mapping.
• gt Economic modelling.

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gt The Reasoning (cont.)
Citrus 2015 A profitable Australian citrus
industry that delights its customers with high
quality, great tasting products This would be
achieved by gt Increasing CONSUMER demand for
Australian citrus gt Improving industry
COMPETITIVENESS gt Improving industry
COMMUNICATION INFORMATION systems gt Enhancing
the CAPABILITY of our industry leadership
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gt The Reasoning (cont.)
Late 2006 the ACG Board proposed a new 2 year
(2007/08) operating plan to its Members. It
focused on three key priorities 1 Establish ACG
as a world class industry body gt facilitate
alignment of industry structure resource use gt
facilitate delivery of industry plan Citrus
2015 2 Improve the competitive position of
Australian citrus growers 3 Enhance industry
information and communication
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gt The Reasoning (cont.)

• gt 2006 ACG Members resolved -
• that ACG move forward with the finalisation and
  implementation of the draft ACG Operating Plan,
  particularly in relation to the process of
  facilitating the alignment of the industry
  organisational structure and strategic plan

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gt The Reasoning (cont.)

• gt April 2007 AGM ACG Members resolved -
• that industry focus on the implementation of
  strategies rather than the development of more
  strategies
• planning gtgtgt action

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gt The Reasoning (cont.)
2007 ACG appointed a National Citrus Strategy
Leadership Group to action Citrus 2015 gt John
Grove, Woolworths gt Kym Baldock, National Foods
Ltd gt Russell Witcombe, Mildura Fruit Company gt
Clifford Ashby, AgriExchange gt Robert Nugan,
Fresh Produce Group gt Michael Worthington,
Timbercorp gt Peter Walker, State Statutory
Citrus Authority gt Mark Chown, ACG President gt
Kevin Cock, ACG Vice President
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gt The Reasoning (cont.)

• National Citrus Leadership Group agreed aligning
  industry structures/resource use is fundamental
  in implementing industry strategy and put forward
  principles for consideration
• gt Whole of supply chain focus.
• gt Skills based appointments.
• gt Performance driven, flexible and accountable
  service delivery.

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gt The Reasoning (cont.)
2007 ACG appointed a Restructure Task Force to
assist in proposing structural options to
industry gt Peter Walker, SA Citrus Industry
Development Board gt Frank Battistel, Riverina
Citrus gt Robert Mansell, Murray Valley Citrus
Board gt Mark Chown, ACG President gt Kevin Cock,
ACG Vice President gt Peter Davidson, ACG
Director gt Nick Ulcoq, ACG Director
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gt The Reasoning (cont.)
gt 2007 ACG consults with its Member organisations
to assist in finalising the Discussion Paper
(Green Paper) during August September gt 2007
ACG distributes Green Paper to industry in
October. It proposes two broad structural
options Multi-Structure and Single Structure. gt
2007 ACG conducts series of regional road shows
during October and November to collate feedback
and encourage written submissions. Approx. 180
participated, 39 written submissions received.
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gt The Reasoning (cont.)
gt The feedback raised diverse very relevant
issues for Implementation Team and ACG Board to
consider taking the process forward gt Key
issue provision of further information including
business case/cost benefit analysis and draft
Constitution
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gt The Reasoning (cont.)
gt 2007 ACG Members agree at November General
Meeting to continue the restructure by
developing more detailed information that enables
growers to make an informed decision gt December
2007 ACG appoints Implementation Team to assist
in responding to call for more detailed
information gt December 2007 ACG Restructure Task
Force considers feedback and hands over its
recommendations to Implementation Team
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gt The Reasoning (cont.)
2007 ACG Implementation Team gt Mark Chown, ACG
President gt Kevin Cock, ACG Vice President gt
Peter Davidson, ACG Director gt Nick Ulcoq, ACG
Director gt Leonie Burrows, Leonie Burrows
Associates gt Brian Ramsay, Concept Consulting
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gt The Reasoning (cont.)
gt 2008 ACG Implementation Team tasked with two
main roles 1. Commence drafting Constitution
for new national peak body ACG appoints
Finlaysons as legal advisor 2. Commission
business case/cost benefit analysis on the two
proposed structural options ACG appoints
Deloitte after tender process as independent
financial advisor
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gt The Reasoning (cont.)
gt April/May 2008 Deloitte Business Case and
draft Constitution outline developed sufficiently
for further Member consultation gt ACG consults
with Member organisations to assist in developing
its Final Report (White Paper) gt29 May 2008
ACGs AGM included an Restructure Information
Session to consider further the detailed
information requested.
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gt The Reasoning (cont.)

• After robust discussion at 29 May 2008 AGM, ACG
  Delegates unanimously resolved that the ACG
  Board
• Put a resolution to members to transition to
  Citrus Australia Ltd on or before the 14 October
  2008 and
• Undertake further due diligence in relation to a
  single structure model and present this
  information at the meeting on or before the 14
  October 2008.

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gt The Reasoning (cont)

• gt The White Paper was finalised and distributed
  in June 2008
• gt In July the ACG Board approved additional
  resources to undertake further due diligence and
  employ temporary staff to allow the work to be
  completed.
• gt Work continued on draft Constitution
  operations of Citrus Australia Ltd including
  Director recruitment financial
  forecast/viability and consultation with Members.
• gt Result Special Resolution for 14 October
  General Meeting
• Information Memorandum Citrus Australia Ltd
  (15 September)

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gt The Resolution
Special Resolution That the undertaking of
Australian Citrus Growers Inc be transferred to
Citrus Australia Ltd, pursuant to an order made
under s.42 of the Associations Incorporation Act
1985 (SA), at the commencement of 1 November
2008.