APFA Farm Concept
Need
Money – APFA needs an increase in revenue to operate as identified through a strategic planning
exercise with the executive.
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We need money to increase political lobbying against state, green and federal issues, and with
state and federal R&D. This is especially more important now due to o full time NAC EO
We need more exposure at large events to showcase our industry (enhance recruiting and
opportunities)
More funding for upskill and recruiting – eg APFA funded scholarships outside of current funding
pool
Increase Funds for R&D
Emergency funds (eg heavy metal/antibiotic testing imported, local)
Marketing Levy
To encourage 100% industry representation – lower association fees and reimburse R&D levy
Increase involvement to 100% industry representation creates a stronger unified association/industry.
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Need money to achieve this as some businesses are financially struggling to afford both
compulsory R&D levy and association fees– see above
Building strong base of next generation of farmers is essential and this could be achieved by the
APFA farm being run as a training farm – encourage bonding sessions/workshops at no cost to
farms
Training – APFA farm could be used as training facility
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Could increase next generation of farmers to bond thus less infighting, more sharing of ideas
Enhance skills for entry grade farmers – prerequisite for many farms to attend for training
Reduction in farm costs by training facility subsidizing training fees
Skilled labor force
Actual operational training on commercial farm observing new techniques and advance
technology from R&D commercialization
Reduction in APFA farm costs through reduction in labor (either farms pay for their staff to be
trained, or subsidized training)
Extension of R&D
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At present a lot of R&D is not being commercialized or extended to farms due to uncertainty of
high risk new ideas. These could be implemented on the APFA farm. A prerequisite of obtaining
funding from APFA is that all projects need to be commercialized on the APFA run farm
Good chance for research providers to enhance skills by working on APFA farm therefore
reducing APFA staff cost – this is high priority for both APFA and R&D providers where skill =
results
Exposure for feed manufacturers (Ridley and CP) and other equipment manufacturers to supply
subsidized research equipment/products thus reducing capital and other running costs (AQ1,
HACH, REDOX, etc)
Exposure
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This farm could be a flagship of our industry where high end R&D is run on farm and greatest
effort to reduce environmental footprint.
What farm to use:
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Instant thought is leasing the 10ha Campwin Beach Prawn Farm (this might be available to do so
next year) – also have already approached David Symmons regarding this and he is interested. It
is a proven good farm producing good returns on profit.
Whom to run (farm manger)
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Either the executive and R&D decide on parameters each year and monitor, or you have a
standalone skilled committee that oversees the running of the farm
Marc Oliver – he could manage the farm, and also still run the training company utilizing the
farm as his base. Maybe cheaper for staff costs as his time and income could be subsidized.
David Symmons as marketing/selling his product through unbiased Sydney Fish Market (already
has an excellent relationship with SMF
How much to run/year - assuming 10ha farm
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See valuation models for more detail (at end of proposal)
In 09-10 season, the average running costs using farms on the executive committee as examples
are:
o Labor = $390,000, Feed = $301,000, Rest = $367,000
o Based on some assumptions of reimbursement predict $500,000 running costs per year
In 10-11 season, the average running costs using farms on the executive committee as examples
are:
o Labor = $200,000, Feed = $300,000, Rest = $400,000
o Based on some assumptions of reimbursement predict $600,000 running costs per year
How much Profit/ year assuming 10ha farm
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See valuation model for more detail
09-10 season = $460,000 profit
10-11 season $350,000 profit
** assume average yearly profit would be somewhere between $400,000 and $600,000 / yr
depending on seasonality
How to fund it??
Options 1 : Utilise the R&D levy as ability to repay interest on overdraft facility
Option 2
Option 3
Option 4
Option 5