west australian wine industry sustainable funding model

west australian wine industry sustainable funding model

west australian wine industry sustainable funding model PRODUCERS PRODUCERS Paid by owner of fruit at crusher Equitable contribution based on production One fee replaces state and regional association membership fees REGIONAL SERVICES CONSULTATION & COLLABORATION REGIONAL ASSOCIATION $ $ FEE FOR SERVICE APC $ CONSULTATION & COLLABORATION CONSULTATION & COLLABORATION STATE SERVICES WOWA REGIONAL ASSOCIATION REGIONAL ASSOCIATIONS Determine fee for services through annual consultation with producers Clearly articulate regional identity Effectively implement regional strategies Sustainable funding model facilitates increased co-investment with government agencies WOWA WINES OF WESTERN AUSTRALIA Determine fee for services through annual consultation with producers Provides support to WA producers and regional associations in the sustainable development of their region Advocacy and representation on behalf of WA producers Sustainable funding model facilitates increased co-investment with government agencies APC FEES AGRICULTURAL PRODUCE COMMISSION An efficient method of collecting and distributing funds, freeing industry resources to focus on core business Current Producer s Committees include vegetables, table grapes, citrus fruit and pork Increased level of governance and accountability

A unified, focused, lean and influential industry Industry wants: A sustainable funding model will provide well resourced State and Regional bodies WOWA Core Focus Regional Associations Core Focus Strategic Influence Representational Unity Strong Regional Bodies Advocacy and representation across all levels of government and associated agencies Work with Regional Associations to develop unified position on all significant issues Develop relevant Regional strategies that increase the value of producers businesses and build regional branding Effective Market Development Strong partnerships with government agencies providing resources for effective Regional market development initiatives Clearly articulated regional identity Clearly identified regionals strategies Research Development Extension Innovation Value Adding Skills Risk Management Across The Value Chain Manage RD&E relevant to WA via the Technical Committee Proactive approach to risk management working with National and State Bodies to Manage Risks: eg Biosecurity, Social License (Wine and Health), Environmental, Liquor Licensing etc Administer Extension Programs Provide Input to Tech Committee to Develop RD&E Priorities Manage Biosecurity Risks Assist WoWA in Disseminating Information Provide Input to Develop Priorities and Positions on Issues

The pathway to success is a secure funding model for our industry Increasingly government and funding bodies require industry associations to have a strategic plan, and more importantly, that they have resources to execute their strategic plan. Government wants to align resources to industry requirements. Currently the State & Regional Associations struggle to achieve industry objectives due to inequitable contribution and inefficient collection methods. The key to growing and further securing the success of the fine wine regions of WA is the development of a critical mass of producers in each region with the capacity to deliver the promise of the region. This funding structure will address the priorities identified by the industry strategic plan. A streamlined and efficient collection mechanism will enable state and regional bodies to become more effective and capable at delivering their core value propositions for producers. Under this model, a single fee for service would replace state and regional association membership fees.

What is the APC The strongest tool available to us to achieve these objectives is to introduce an APC for the Western Australian wine industry The Agricultural Produce Commission (APC) is a statutory authority established in Western Australia by the Agricultural Produce Commission Act of 1988. The APC currently has ten operational Committees, providing a wide variety of services, to such industries as vegetables, Carnarvon Bananas, table grapes, potatoes and pome, citrus and stone fruit The Act enables Western Australian agricultural producers to form Producers Committees for the purpose of collecting funds to provide services to those producers. For the wine industry it has been identified that the most efficient and effective manner to provide services to the industry, will be for the APC Wine Producers Committee to have services provided by the State and Regional bodies.

What is an APC Fee for Service and how is it set? Fee for Service (FFS) are the funds, collected from every relevant producer, which are used for the provision of services to producers by the State (WOWA) and Regional Associations. WOWA and Regional Associations, through consultation with producers, develop Strategic Plans and annual Business Plans which determine the specific services to be provided to Producers The FFS will be collected from the owner of grapes at the crusher (the Producer defined as Any manufacturer of wine from WA grapes ) The FFS will be applied to each tonne crushed, based on a similar, or in some instances, lower sliding scale than current funding structures of regional and state bodies. The State and Regional bodies determine the cost structure / calculation method for FFS on an annual basis and will be collected on either an annual or twice yearly basis. FFS funds will be provided to regional bodies based on fruit grown in that region. FFS funds will be provide to the State association based on fruit grown from all GI regions. The APC charges an administration fee (approx 10%) to collect and disburse funds on behalf of industry. This administration fee is reviewed annually on a full cost recovery basis. This is a significant saving over what it costs nine regional bodies and the State body to collect fees. Furthermore, the APC process is a far more efficient way to collect funds allowing all bodies to focus on their core business providing opportunities for the fine wine regions of WA to prosper.

Industry Structure & Accountabilities State and Regional Associations are accountable to their members, through the mandate outlined in their constitutions and against annual business plans. WA Wine Producers Wines of WA Board members selected by WA wine producers & Regional Associations Regional Associations Board members elected by Regional wine producers APC Wine Producers Committee 4 members selected by WOWA & Regional Associations Core Function: ensuring State and Regional Associations execute according to Strategic Plan and annual Business Plan Agricultural Produce Commission APC Committee provides independent oversight and guidance. The Committee is accountable to industry via the Commission Minister for Agriculture and Food

Process and Timetable for creating an APC Producers Committee WOWA Regional Workshops conducted WOWA Strategic Plan Launched Consultation with Producers and Regional Associations on APC Structure Regional Association and WOWA joint meeting agreed to APC structure APC Commission agreement to poll producers achieved Poll of individual producers to be conducted APC Commission makes recommendation to Minister subject to outcome of poll 2014 2015 2016