Pig Industry Fund Five Year Management Plan 2011-12 to 2017-18 (A requirement of the Primary Industry Funding Schemes Act 1998) Contents 1. South Australian Pig Industry ........................................................................ 1 2. Contributions to the Fund .............................................................................. 1 3. Investment of the Fund ................................................................................... 1 4. Application of the Fund .................................................................................. 2 4.1 Industry Programs .......................................................................................... 2 4.2 SA Pig Industry Advisory Group and Fund Administration Expenses ....... 3 5. References ....................................................................................................... 3 6. Pig Industry Fund – Five Year Budget (2011-12 to 2017-18) ........................ 4 1. South Australian Pig Industry As at May 2013, South Australia (SA) had 610 registered pig brands (PIRSA PIIMS Database, May 2013), for which many properties are not currently running breeding sows. The actual number of sows, and hence estimates of pigs available for processing, is not known. Available data suggests that SA’s breeding sow numbers could be as many as 49,836 (APL, 2011) or as few as 40,000 (ABS, 2012). Given the discrepancy in the data sources, combined with the anticipated impact that the move to abolish sow stalls will have, it has been assumed for the purpose of calculating future Pig Industry Fund contributions, that SA’s sow breeding numbers will remain static at 45,500 for the predicted period. However piglets sold per sow is expected to decrease from 21 (2011-12) to 20 during 2012-13, rising slightly thereafter to 20.5 piglets in 2013-14 and then 21 piglets for the remaining period (ie 2014-15 to 2017-18). 2. Contributions to the Fund Under the Primary Industry Funding Schemes (Pig Industry Fund) Regulations 2001, a pig producer (or collection agent on behalf of the producer) must pay to the Minister for Agriculture, Food and Fisheries for payment into the Fund a contribution of $0.20 per pig sold for $20 or more irrespective of whether the pigs are sold within or outside of South Australia. This applies equally for pigs sold for slaughter or breeding purposes. The overall number of pigs sold via private treaty is unknown. However contributions to the Fund historically suggest that the average number of South Australian pigs sold (based on a five year running average) were 884,176. Based on estimated breeding sow numbers and piglets turned off per year, it is estimated that contributions will be: Period 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Notes: 1 3. Estimated Breeding Pig Numbers 45,451 45,500 45,500 45,500 45,500 45,500 45,500 Estimated Number of Pigs Sold Estimated Contribution1 954,471 910,000 932,750 955,500 955,500 955,500 955,500 $190,894 $182,000 $186,550 $191,100 $191,100 $191,100 $191,100 Calculated on a 20 cent per head contribution. Investment of the Fund Management of the Pig Industry Fund is carried out by Biosecurity SA (a division of PIRSA) on behalf of the Minister for Agriculture, Food and Fisheries, as Page 1 of 5 Administrator of the Fund. Interest is paid quarterly, and is calculated on the daily balance using the average overnight cash deposit rate for the relevant quarter. 4. Application of the Fund The Pig Industry Fund may be applied by the Minister for any of the following purposes: payment of outstanding claims for compensation made or pending against the Swine Compensation Act 1936; payments of compensation for pig diseases gazetted as a “declared compensable disease”; the undertaking of research, investigative or other programs relating to pigs, pig products or any other aspect of the pig industry recommended to the Minister by the consultative committee; repayment of contributions to the Fund; payment of the reasonable operation and management expenses of the Pig Industry Advisory Group (whether sitting as the Pig Industry Advisory Group under the Livestock Act 1997 or as the consultative committee); and payment of the expenses of administering the Fund. The SA Pig Industry Advisory Group acts as the consultative committee for the Fund, and makes recommendations to the Minister on projects that should be sponsored, based on industry benefit. To ensure that South Australian Fund contributors have access to information about the Advisory Group and projects funded by the Pig Industry Fund, a SA Pig Industry Advisory Group web page on the Department’s web site has been established (www.pir.sa.gov.au/sapag). Promotion of the web page occurs through ad hoc industry communication. 4.1 Industry Programs The Fund is predominantly used to sponsor programs designed to: improve animal welfare; develop labour saving approaches to piggery activities; improve production and water efficiencies; increase community awareness about the industry and its local benefits; increase producer knowledge (about business management, HR etc); and increase the number of skilled people interested in working in the pig industry. Updates on sponsored programs are required. An annual advertisement seeking project applications is placed in the Stock Journal and the PorkPage around February/March each year. Applications are assessed on their ability to deliver a benefit to South Australia’s pig industry. The Pig Industry Advisory Group, where possible, attempts to restrict funding recommendations (including Advisory Group and Fund administrative expenses) to Page 2 of 5 no more than 75% of annual total income. Under this policy, it is expected that the Pig Industry Fund will continue to grow for the benefit of industry. 4.2 SA Pig Industry Advisory Group and Fund Administration Expenses Administrative expenses incurred by the SA Pig Industry Advisory Group include members sitting fees and travel reimbursements, catering, venue hire, executive officer support and audit fees. Collectively in 2011-12 this represented 10.6% of total expenditure. This decrease occurred as that the project expenditure base was higher as several project invoices received were for projects conducted in 2010-11. A person who has contributed to the Pig Industry Fund may request a refund for the contributions made in the financial year immediately preceding the financial year in which the claim was made. No contribution refunds were sought in 2011-12. It should be noted that recipients of a Pig Industry Fund refund are ineligible to receive direct benefits or services from activities funded by the Fund for a period of five years. 5. References Australian Pork Limited, “Australian Pig Annual: 2011-12”, (http://www.australianpork.com.au/pages/page149.asp) 71110DO001_201112 Principal Agricultural Commodities, Australia, Preliminary, 2011-12 (http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/7111.0201112?OpenDocument) Primary Industry Funding Schemes (Pig Industry Fund) Regulations 2001 Page 3 of 5 6. Pig Industry Fund - Five Year Budget (2011-12 to 2017-18) Opening Balance Income Contributions (20 cents/head sold) Interest Other revenue Total Income Expenditure Target 25 in SA Influence of semen age during summer Ron Lienert Memorial Scholarship Pig education in High Schools Pig appeasing pheromones to reduce aggression in group housed gestating sows pilot study Pig appeasing pheromones to reduce aggression in group housed gestating sows Evaluation of AI programmes on farms ProHand Pig Handling Training (incl Transporters) Mentoring Undergraduate Industry Placement Award (UIPA) Roseworthy - Enrolled Students Ron Lienert Memorial Scholarship - Promotion & Mentoring of the Honours Scholarship Recipient Urrbrae High School Effluent Pond Management System Providing Group Housed Breeding Sows with Straw in Racks 2011-12 Audited Actuals 2012-13 Budget 2013-14 Fwd Estimates 2014-15 Fwd Estimates 2015-16 Fwd Estimates 2016-17 Fwd Estimates 2017-18 Fwd Estimates 3,107,127 3,386,813 3,512,926 3,550,564 3,588,307 3,628,985 3,672,860 216,491 138,996 182,000 107,064 186,550 99,146 191,100 110,379 191,100 125,854 191,100 142,489 191,100 154,558 355,487 289,064 285,696 301,479 316,954 333,589 345,658 10,000 5,000 75,940 78,218 80,565 82,982 226,109 237,716 250,192 259,244 6,000 16,544 10,000 3,263 5,176 19,004 16,800 13,350 4,726 5,000 8,000 2,000 5,000 18,997 Effect of Swing Sided Farrowing Crates on Sow & Litter Welfare & Performance Provision of small pig shelters to South Australian schools Pork SA Pig Management Handbook for Schools Update WH&S requirements for piggeries Study of 24 hour farrowing supervision on piglet mortality rates Total Project Expenditure 7500 14,589 2,200 79,220 54,157 128,911 11,589 74,307 6,266 24,000 25,875 211,338 Page 4 of 5 2011-12 Audited Actuals Administration PIAG administration (inc sitting fees, mileage, catering, venue hire etc) Executive Officer Support Fund Administration (ie audit fees) Contribution Refunds Administrative Float Total Administrative Expenditure Total Expenditure Closing Balance 2012-13 Budget 2013-14 Fwd Estimates 2014-15 Fwd Estimates 2015-16 Fwd Estimates 2016-17 Fwd Estimates 2017-18 Fwd Estimates 4,461 7,200 9,270 9,548 9,835 10,130 10,433 3,183 10,000 13,840 6,500 1,500 5,000 34,040 162,951 3,512,926 14,255 6,695 1,500 5,000 36,720 248,058 3,550,564 14,683 6,896 1,500 5,000 37,627 263,736 3,588,307 15,123 7,103 1500 5,000 38,561 276,276 3,628,985 15,577 7,316 1500 5,000 39,522 289,714 3,672,860 16,044 7,535 1500 5,000 40,513 299,757 3,718,761 17,644 71,801 3,390,813 Page 5 of 5