2022 JA Annual Report by Jersey Australia Inc

Jersey Australia 2022 Annual Report

NOTICE OF MEETING Dear Members It is my pleasure, on behalf of the Board of Jersey Australia, to invite you to the 2022 Jersey Australia Annual General Meeting. We are excited this year to be hosted by the Tasmanian Jersey Breeders Club and we look forward to seeing you all at the Gateway Inn Motel in Devonport at 9am on Thursday, 26th May 2022 for the Annual General Meeting We also recognise the value of ensuring members who cannot travel in person, can also attend so we will be streaming the AGM via video link. Members can access the meeting on zoom via the following details: Topic: 2022 Jersey Australia AGM Time: May 26, 2022, 09:00 PM Canberra, Melbourne, Sydney Join Zoom Meeting https://us02web.zoom.us/j/82123889855?pwd=Q1RYTXNPdnROMkpCL0R4eVFrc096dz09 Meeting ID: 821 2388 9855 Passcode: 412289 One tap mobile +61280156011,82123889855#,*412289# Australia +61370182005,82123889855#,*412289# Australia Dial by your location +61 2 8015 6011 Australia +61 3 7018 2005 Australia +61 7 3185 3730 Australia +61 8 6119 3900 Australia +61 8 7150 1149 Australia Meeting ID: 821 2388 9855 Passcode: 412289 Jersey Australia can assist members wishing to join the video conference where practicable. Kind Regards

Glen Barrett Returning Officer

Front Cover Photo Credit: Holly Anderson

AGM ITINERARY

Jersey Australia 2022 AGM and Conference Host Club: Tasmanian Jersey Breeders Monday 23rd May 2.00pm

Bus departs Launceston Airport – Bookings Essential

6.00pm

Drinks and Dinner at Southern Wild Distillery – Cost $30.00 per person Accommodation at The Gateway Motel in Devonport

Tuesday 24th May 8.30am

Bus departs hotel

11.30am

Farm walk and lunch at CRAIGLAWN Jerseys Judy and Brian Johns @ South Forest

1.00pm

Head to Stanley

1.15pm

Tour The Nut https://tasmania.com/points-of-interest/the-nut-in-stanley/

3.00pm

Depart Standley and return to hotel

6.00pm

Dinner at the Paranaple Centre - $65.00 per person Dairy’s Finest Sale Guest Speakers

Wednesday 25th May 8.30am

Bus departs for Ashgrove Cheese

9.00am

Ashgrove Cheese Tour https://www.ashgrovecheese.com.au/

11.40am

Lunch at Meander Hall

1.10pm

Tour Tasmanian Truffles – Cost $30.00 per person https://tastruffles.com.au/

3.15pm

Farm Visit to Merseybank Jerseys Geoff and Anne Heazelwood @ Latrobe

6.00pm

Dinner and JA Awards Presentation Night at Paranaple Convention Centre - $75.00 per person

Thursday 26th May 9.00am

JA Annual General Meeting

12.00pm

Bus departs to Launceston Airport – Bookings essential

ANNUAL GENERAL MEETING AGENDA 1. 2. 3. 4. 5.

Opening of 2022 Annual General Meeting Apologies Confirmation of minutes of 2021 AGM Business arising from minutes Annual Reports a. President b. General Manager c. Treasurer d. Genetic Development e. Promotions Consideration of financial statements a. The Board of Jersey Australia recommends that the members accept and approve the Audited financial statements for the year March 1, 2021, to February 28th, 2022 Appointment of Auditors for coming year a. The Board of Jersey Australia recommends that Dillon Clyne are re-appointed as the Association Auditors for the 2022/23 Financial Year Annual election of Board of Management members In line with Jersey Australia’s Board rotational policy, the following directors are required to step down from the Board of Australia. • Lisa Broad • Alan Carson • Jane Sykes • Robert Anderson • Geoff Akers Nominations were called for by the returning officer to fill five (5) vacant positions. A total of 4 nominations has been received and by requirement of the constitution of Jersey Australia, the nominees are: • Lisa Broad • Geoff Akers • Robert Anderson • Jane Sykes With insufficient nominees to fill the vacancies, under the requirements of the Jersey Australia Constitution, the nominees will be automatically appointed to the Board of Jersey Australia for a twoyear term and no election will be required. Setting of Annual Membership Fee: It is recommended by the Board that Membership Fees be increased and set as per the following: Membership Type Fee Change Full $350.00 + GST +$100.00 Family $380.00 + GST +$105.00 Associate $170.00 + GST +$50.00 Junior $80.00 + GST No Change

10. General Business

MINUTES OF THE 2021 ANNUAL GENERAL MEETING Jersey Australia Inc Minutes of Annual General Meeting June 24th, 2021 Via Video Conference

Meeting Open and Welcome Attendees: Gordon Peck Jane Sykes Kerrie Anderson Anthony Michaels Julie Campbell Anthea Day Daryl Hoey Richard Scoones David Anderson

Gordon Lawson Barry Monson Belinda Egan Bruce Ronalds Brian Wilson Trevor Saunders Geoff Heazelwood Mark Flemming

Chris MacKenzie Paul Lenehan Simon Reid Jamie Drury Vicki Wilson Cheryl Launder Alan Carson Phillipa Flemming

Lisa Broad Robert Anderson Wayne Kuhne Trevor Campbell Lindsay Wilson Alan Launder Jim Bruce Tanya Privitera

Staff: • Glen Barrett • Lucy Webb-Wilson The Chair opened the meeting at 11.20am and welcome all members to the AGM. The chair asked members to stand for a minute silence in respect of members who had passed away during the past year. The chair advised the meeting that in line with the constitutional requirements motions are required to receive 50.1% of support to pass excluding constitutional change motions which require 75.1% support to pass. 2

Apologies Andrew Younger, Reece Attenborough, Janine Carson, John Sykes, Keith Kuhne. Motion • That apologies be received. Moved: Alan Carson Seconded: Paul Lenehan CARRIED

Confirmation of minutes of previous AGM Motion • That the minutes of the 2020 Annual General Meeting dated 25 th of June 2020 be accepted as a true and correct records. Moved: Lisa Broad

Seconded: Jane Sykes CARRIED 4

Business Arising Nil raised

Annual Reports Mr Mackenzie presented the Presidents Report Motion • That the Presidents Report be received Moved: Wayne Kuhne Seconded: Alan Carson CARRIED Mr Barrett presented the General Managers Report Motion • That the General Managers report be received Moved: Paul Lenehan Seconded: Jamie Drury CARRIED Mr Lenehan presented the Treasurers Report Motion • That the Treasurers report be received Moved: Paul Lenehan Seconded: Robert Anderson CARRIED Ms Broad presented the Genetics Report Motion • That the Genetics report be received. Moved: Lisa Broad Seconded: Brian Wilson CARRIED Ms Sykes presented the Promotions Report Motion • That the Promotions report be received. Moved: Jane Sykes Seconded: Phillipa Flemming

CARRIED 6

Financial Report • Mr Barrett presented the financial report providing a detailed overview of the Associations performance during the year. • Key points to note o Increase in member and industry services revenues o Performance of Association investments o State and Federal COVID-19 support payments o Decrease in Association expenses o Outlays to supports staff work from home arrangements. o Association financial risk and steps taken by the Board to support increased revenues • Members were provided opportunities to ask questions relating to the Association financials. o Nil was raised Motion • That the Audited Financial reports for the year March 1st 2020 to February 28th, 2021, be accepted Moved: Paul Lenehan Seconded: Alan Carson CARRIED

Appointment of Auditor Motion • That Jersey Australia appoint Dillon Partners as the Association Auditor for the Financial year March 1st, 2021, to February 28th, 2022. Moved: Paul Lenehan Seconded: Jane Sykes CARRIED

2021 Annual Election The Returning Officer Mr Barrett advised the meeting that the election process was undertaken under the rules of the Association and 3 nominees were received at the close of nomination leaving a vacancy on the Board. The following nominees were automatically elected to the Board. 1. Brian Wilson 2. Jamie Drury 3. Wayne Kuhne

Setting of Annual Membership Fees Motion • That the Membership fees be set as per the following o Full Membership $250.00 + GST

o Family Membership $275.00 + GST o Associate Membership $120.00 + GST o Junior Membership $80.00 +GST Moved: Paul Lenehan Seconded: Wayne Kuhne • •

Mr Lenehan note the fees included a rise of $10.00 for Full memberships and $15.00 for family memberships Members queried as to why the increase was not in line with the service fee increases which are set at the annual CPI rate o It was noted that ▪ the Board set service fees and it was the responsibility of the AGM to set membership fees ▪ The AGM is before the end of the financial year and as such the CPI rate is unclear and would make it unable to set the fee with full clarity,

The Chair put the motion CARRIED 11

Changes to the Constitution Motion • That Section 9.3 of the constitution be updated from The Officers of the Board shall be. a) President b) A senior vice president and a junior vice president c) An honorary treasurer d) A secretary to The Officers of the Board shall be. a) President b) A vice president c) An honorary treasurer Moved: Brian Wilson Seconded: Jamie Drury •

•

The purpose of the change was to ensure the executive of the Association is not overrepresented and a proportion of the Board. o The finalisation of the reduction of the Board from 10 to 8 members is now completed o The executive should remain accountable to the full Board. As it currently is, the executive would have the balance of power Members discussed the role of Treasurer and whether it was still a current needed executive appointment of the Board

The Chair put the motion and it was CARRIED

Motion • That Clause 11 be updated from SECRETARY 1. The Board, upon appointing the secretary, shall nominate a person to be the public officer of the Association. The secretary shall be paid a fee as agreed upon from time to time. 2. The secretary of the Association shall keep minutes of the resolutions and proceedings of each meeting together with a record of names of persons present at the Board meetings. 3. The secretary shall be a non-voting member of the Board unless the secretary is a Director acting as Secretary in an honorary capacity. 4. The secretary should keep a book of rules and motions. To SECRETARY 1. The General Manager shall also be appointed as the Secretary of the Association and Board 2. The secretary shall also be the Public Officer of the Association. 3. In the absence of the General Manager for a particular meeting or duration of time, the President shall delegate the role of Secretary to a Board Member or other Senior Management for the duration of the General Managers absence. 4. The secretary of the Association shall keep minutes of the resolutions and proceedings of each meeting together with a record of names of persons present at the Board meetings. 5. The secretary should keep a book of rules and motions Moved: Robert Anderson Seconded: Lisa Broad • •

The General Manager has been undertaking the role for many years. With the change to the executive structure, this update is both required and formalise what has been occurring. Members considered whether the wording of part 5 of the motion should read “the Secretary shall keep a book of rules and motions” o The word shall instead of should is more definitive and not open to interpretation. o The mover and seconder of the motion were satisfied to include the change of wording.

The chair put the motion and the motion was CARRIED with the amended wording as described. 12

General Business The chair asked for any general business from the floor. •

Members raised a growing concern of a reduction in fertility and inbreeding and is there any policy that Jersey Australia could develop to help address these issues

• • • • • •

It was noted that no formal Jersey Australia policy is implementable as key decisions are not the domain of Jersey Australia o Members have a far more significant opportunity to implement change to address these issues. o It was noted that ▪ Data collection for jerseys is significantly lower in fertility/reproduction traits affecting R&D and analysis. Members should be collecting and recording all reproduction data ▪ Selecting bull with a fertility ABV of 100+ is a purchasing policy members can and should undertake when purchasing semen ▪ Being more and more conscious of inbreeding and avoiding inbreeding clashes in mating programs should be a higher consideration. o Members encouraged Jersey Australia to support the development of industry policy relating to inbreeding. Members asked if the GSC/GNC will return this year o It was noted that the GSC and GNC are on the events agenda for this year with the continued support of Semex Australia On behalf of Tasmanian members, Mr Heazelwood invited all members to attend the Jersey Australia 2022 Annual General Meeting in Tasmania. The chair provided a note of thanks to the Central Gippsland Jersey Breeders Club on behalf of members for hosting the 2021 AGM and Conference. The Chair issued a personal thanks to members for their support over his time on the Board and as President of the Association. Members noted the meeting being the last official meeting for Mr McKenzie and Mr Lenehan and asked that a note of thanks to them both be recorded in the minutes. The chair thanked members for their attendance and participation and closed the meeting. Meeting Closed 12.38pm

GOVERNANCE ATTENDANCE RECORD Board Meetings Jun-21

Jul-21

Sep-21

Oct-21

Dec-21

Feb-22

Mar-22

May-22

Lisa Broad

Yes

Brian Wilson

Yes

Jamie Drury

Yes

Wayne Kuhne

Yes

Jane Sykes

Yes

Alan Carson

Yes

Robert Anderson

Yes

Geoff Akers

N/A

Yes

Glen Barrett

Yes

Genetic and Breed Development Meetings

Wayne Kuhne Brian Wilson Jamie Drury Reece Attenborough Lachlan Fry Daryl Hoey Pat Nicholson Alan Carson Glen Barrett

Aug-21 Yes N/A Yes Yes Yes Yes Yes Yes Yes

Nov-21 Yes Yes Yes Yes Yes Yes Yes N/A Yes

Mar-21 Yes Yes Yes Yes Yes No Yes N/A Yes

Promotions and Marketing

Jane Sykes Robert Anderson Geoff Akers Daniel Bacon Hayley Boyd Lucy Webb-Wilson Glen Barrett

Aug-21 Yes Yes Yes Yes Yes Yes Yes

Mar-22 Yes Yes Yes No Yes N/A Yes

PRESIDENT REPORT – LISA BROAD As my first year as Chairperson draws to a close the challenges of the ongoing pandemic changed the way I had imagined my year to look. Zoom meetings continued, seeing people face to face was in late March 2022. The board, staff and members have worked tirelessly to continue to provide services and deliver the message to industry that the Jersey cow is the most profitable and here to stay. I sincerely thank everyone for their efforts. I’m pleased to report that our membership has remained steady, with a year-end membership of 486. This is slightly up on the previous year. I would like to make mention of new life member Mr Alan Carson, Cairnbrae Jersey’s, Alan has served on the classification team for 40 years, been a representative on the board and held many club positions. Alan is also retiring from his term on the board. Congratulations and thank you for your valuable service and contribution. Continued development of governance and understanding the roles that lie beneath this has again been ongoing for the board, staff, and subcommittees throughout the year, and I recognise the importance of the guidance and support being provided by Horsburgh Consulting services. Our cornerstone Research project “The Jersey’s Most Profitable and Sustainable Cow” was completed and delivered to a large and captivated audience at International Dairy Week in January. The positive findings being delivered by project lead Dr. Steve Little. The full report can be found on our web site. We thank Dr Little and Scott Barnett for their robust evidence-based investigation. As we reflect and report on the year we have had, it is also an opportunity to inform members of the plans and strategies for the future. Much of what we have achieved over the last 2-3 years is to set the foundations for the Association to look towards the next 50 years and to ensure that Jersey Australia and the Jersey breed maintains a strong relevance and presence in the Australian and Global dairy industry. Key Achievements: ➢ Restructured our Board and Management structure to ensure the Board’s key focus is on strategy, governance, and policy. ➢ Implemented key sub-committees to provide detailed review and recommendations to the Board in Genetics and Promotions. ➢ Completed the successful “Jersey’s Most Profitable and Sustainable Cow” Project detailing the key benefits of the Australian Jersey Cow. ➢ Developed and implemented new marketing strategies and branding providing Fresh logos, Dairy’s Finest Brand development, 5-Star Jersey cow initiative and a Jersey milk promotion. ➢ Re-established our industry relevance through supportive engagement and participation in key priority areas and stakeholder groups. ➢ Implemented a new breed registry an increase and improved service delivery to members and stakeholders. This work has been led through the recognition of a need to change, adapt, and grow the Association. We have achieved the re-laying of the foundations; it is now time to set the pathway forward. The Board has, or is in process of, setting several key objectives and activities. This takes investment both financially and resources and will take the commitment of not many but all to reach our goals.

We invite our members to share the journey with the Board, Management and Staff of the Association. Together we can achieve great things for the Breed and the Association. The key objectives we are establishing are outlined in the table below. In coming years, we will be sharing with you in annual reports the Associations achievements to the Key Performance Indicators, “KPI’s”, what worked well and what didn’t work so well. This is a living plan that when appropriate we will amend and add to as required. We are also encouraging members to share their ideas and thoughts on what we can do to enhance and grow the Association. Objective Maintain and Grow the Association relevance

Provide Strong Governance and Leadership

Financial Stability

Maintain and Grow the Jersey Breed

KPI Target • Increase membership by 15 -20% of current membership in the next 12 months • Ensure every member is registering every calf every year • We ensure every Jersey breeder regardless of their breeding objective are welcomed and supported by the Association • A strong stable Board with a key focus on strategy • Key supportive sub-committees to provide the Board informed review, consideration and recommendations on key issues, rules, and policy. • Reduce long term reliance on Export Heifer and Investment to maintain profitability • Invest in opportunities to support key projects and R&D for the Jersey Breed and the Association. • Increase the Jersey population in the national herd to 30% • Maintain a positive genetics trend on all traits

How do we achieve these KPI’s • We continue to ensure there is strategic value proposition to registering cows • We engage a Field Officer to support growth objectives in membership and core services across the country.

• •

Continuous investment in training and development of our current and future leaders Represent the Breed and Association within industry stakeholders

• •

Deliver member services at cost by 2025 Increase revenue through the provision of new or additional services

•

Continuously strive for the genetics improvement of the Australian Jersey Cow Provide support and encouragement to domestic and international market growth opportunities Build on the foundation of the “Jersey’s Most Profitable and Sustainable Cow” Project to drive our breed promotion and marketing direction and opportunities. Host the Jersey 2050 Forum to ensure, set and maintain the breed direction as the cow of the present and the future.

• •

•

International Dairy Week was back on the calendar, a great display of jersey’s was presented for judge Mr Brian Wilson, congratulations to breeders & exhibitors. We look forward to working with clubs and members in regions to maximise opportunities for the newly appointed field service officer to grow the association through an increase in membership and services providing positive benefits for the association. International growth opportunities are in abundance for Australian Jerseys. Strong semen sales continue into Africa, and it’s exciting to see market opportunities developing strongly into North America and Europe. Asia is a significantly growing market prospect for Australian genetics with strong interest in Pakistan and India. Although only in its infancy of developing a market foothold we are committed to supporting growth opportunities across all regions. To my fellow Board Members thank you for your continued commitment to the board and the jersey breed, it is a pleasure to work with you. “Today is your opportunity to build the tomorrow you want” Ken Poirot Lisa Broad President

Australian Jerseys. Dairy's Finest Cow

GENERAL MANAGERS REPORT – GLEN BARRETT When we met in Warragul in 2021 for the AGM and Conference, there is no doubt we were eagerly looking forward to a return to a reasonable level of life as we knew it before the COVID-19 pandemic gripped the world. By the end of what was one of the most exciting and fruitful weeks in the Association history, we once again pushed into a year of uncertainty, planning and cancellations, and for the office another year of predominantly working from home. Through it all though, we met the challenges head on, and we continued to deliver events and activities when and where we could and ensured Association services were delivered across the country. Members Services

199

207

Herds Classified 2017/ 2018/ 18 19 47 52 20 19 8 12 9 8 120 116 2 1 8 17 206 233

NSW QLD SA TAS VIC WA

2015/ 16 71 33 14 12 159 5

2016/ 17 60 23 8 3 124 3

Herds Registered 2017/ 2018/ 18 19 72 65 27 25 15 17 10 16 151 171 3 3

Total

294

221

NSW QLD SA TAS VIC WA GINFO LTE Total

2015/ 16 50 20 11 9 108 1

2016/ 17 49 23 11 7 115 2

278

297

2019/ 20 40 8 10 10 110 0 31 5 214

2020/ 21 42 0 4 7 97 69 10 229

2021/ 22 24 16 10 4 97 3 60 10 224

2019/ 20 62 24 15 10 135 2

2020/ 21 60 18 12 5 127 3

2020/ 21 57 29 13 7 133 4

248

225

243

NSW QLD SA TAS VIC WA GINFO LTE Total

NSW QLD SA TAS VIC WA EXPORT Total

3888

Cows/Heifers Classified 2016/ 2017/ 2018/ 2019/ 17 18 19 20 932 962 954 503 268 255 245 162 120 109 186 89 106 172 116 162 2857 2890 3139 2810 15 24 19 0 441 1409 231 46 4298 4412 5331 5181

2015/ 16 2402 360 357 353 6141 15 1779 11407

2016/ 17 3155 729 365 330 7592 40 8211 20422

2015/ 16 795 201 190 185 2514 3

Animals Registered 2017/ 2018/ 18 19 2202 2348 408 532 321 364 507 343 5429 5655 37 18 9368 7029 18272 16289

2019/ 20 1355 232 341 224 5330 6 4511 11999

2020/ 21 685 1 56 169 2729 0 2153 92 5885

2021/ 22 580 331 126 140 3275 35 2348 205 7040

2020/ 21 1532 287 182 449 5928 31 5304 13713

2021/ 22 952 734 175 140 5632 54 4227 11914

After a strong year in 2020/21 for registrations and strengthening farming conditions across the country, it was disappointing to see registrations drop this year. We implemented a program to encourage some members who had not registered for over 5 years which had some success in encouraging herd books to be brought up to date. Classifications services throughout the year was exceptionally busy and well up on previous years with increased LTE for AI Company as well as some new LTE work direct for Aussie Red members with stable Ginfo numbers Transfer number were on par with previous years and ancillary service such as genomic testing was up 40% as interests and value strengthens in genomics. Industry Participation The Association has been busy at an Industry as well with key participations in the DataGene Genetics Standing Committee, Dairy Australia South Coast Surplus Calves Pathway Project and the Ginfo Project. We have also worked with other Breed Associations and Stakeholders in exploring opportunities to enhance Australia’s genetics export opportunities where we see enhanced value in a team approach to support a strong Australian genetics market. Jersey participation at industry level is critical to ensuring Breed priorities are continuously pushed forward to enhance the breed and breeder opportunities.

Staff The Association would not be able to deliver services and activities through the year without our dedicated staff and I thank both the office and classifier staff for your efforts and commitment across the year. I would like to acknowledge the retirement of Alan Carson and Trevor Campbell as classifiers after nearly 40 years of service each. Thank you both and I trust you enjoy your retirement. Throughout the year we also had the departure of Lucy Webb-Wilson after 3 ½ years with JA. Lucy was an integral part of our team and I also thank Lucy for her time at Jersey Australia. For most of the year the office staff again worked from home to ensure the services were processed. To the class team I thank you for your extended efforts throughout the year to meet the increased services demand. It was challenging but also rewarding to see the commitment to meeting the member’s needs. Projects The Jersey Most Profitable & Sustainable Cow Project was a cornerstone project for the Association and while their nervousness of what the outcomes may well be did make the investment cautious, the substantiation of long held beliefs of the performance of the Jersey cow was well validated. The Class Longevity Project classified close to 500 cows, and we are seeing expected trends of improve, sustained, and reduced class score. This data is key to ensuring our class system is continually enhanced to meet the Association needs. This is powerful data to capture for future use. Our genomics project has commenced to capture genotypes on key animals both on classification scores and on high merit cows. Thank you to all members, stakeholders and to the Board and Staff for your support and encouragement. I very much enjoy serving the Association and I look forward to continuing to grow the Association for all Jersey Breeders and maximise the opportunities to members Glen Barrett General Manager

Australian Jerseys. Dairy's Finest Cow

TREASURERS REPORT – JAMIE DRURY The last financial year has seen yet another challenging twelve months for the Association financially. It is disappointing to say this considering the buoyancy of cow prices and milk pricing over the last year, we remain heavily reliant on investment and export income to keep the Association running. With the absence of the COVID-19 stimulus grants of the previous year, 2021-22 saw Jersey Australia record a loss of $76,208, which was $23,713 less than the budgeted loss of $99,922. Income 2021-22 has seen a 14.5% increase in total income of $70,143.12 over 2020-21 to $553,509, against a budgeted income of $523.924.00 Member Services Member Services’ income of $298,237 was an increase of 4% over previous years Member Services’ income of $286,623. Interestingly this represents a 6% decrease in the percentage of the Association’s total income from 59.3% in FY21 to 53.9% in FY22. We saw a settling in the number of registrations this year after last year’s 40% increase seeing registration revenues down by 12%. Increases in Classification by 20.5% and other Member Services saw the overall increase in Member Services’ income. This compares to a budget of $328,253.00 Industry Services Industry Services eased by 8.5% from last year’s very strong result to $99,949. The bulk of this reduction is a result of export registrations being down $8,599. This compares to a budget of $109,257.00 Publications Following great support for the Jersey Journal over the last year and a break even result in other publications, the Association was able to record a revenue increase of $9,500, a lift of some 25%. This led to a year result of $47,474 against a budget of $44,760.00 Investments With the continuing COVID-19 pandemic instability, and more recently Russia’s invasion of Ukraine, it has put challenges in front of us regarding our investments. The last year has seen the Board take proactive management strategies to protect the Association’s investments against expected forward expenditures when it has been prudent to do so. FY22 has seen a 55% increase in investment income on previous to $58,174.44 against a budget of $28.675. However, investment growth was down 59% on previous year with growth of $32,210 on a budget of $57,350 Investment sits at $1,167,161.94 at the end of the financial year

Other Income The Association benefited from unbudgeted income of $51,080.32 during the year. This included a $20,000.00 grant from Jersey Australia(Vic) to support the Jersey Most Profitable & Sustainable Cow project and $31,080.32 from the NAB as compensation for historical investment advice paid for but not received. Cost of Sales Cost of sales saw a significant increase from $130,656 to $176,162. This was due to classification costs of $19,282 with a high service demand and some delayed classifier expenses from previous years being received and costs incurred on behalf of the Central Gippsland Club for the AGM of $10,010 and a $7,910.00 cost increase for our publications. The AGM expenses were recovered in revenue General Expenses Expenses of $485,765 were higher than last year’s figure of $405,717 however $48,854 less than the budgeted $517,005.00 The most notable differences over previous years are as follows: ➢ Investment Management fees $15,886 was higher than FY21 $4,089. This increase was due to an error at AMP for undercharging on expected investment ,management fees since the fund inception and recovering these historical costs. ➢ Employment and staff costs increase from $255,419 to $263,722 ➢ Annual Meeting Expense increased from $4,403 to $11,290 ➢ Marketing and Promotions increased by $13,828 due in large part to the cancellation of 2021 IDW. We are budgeting for an increased promotions budget for FY23 to market the results of the Jersey Most Profitable Cow project. ➢ An increase in projects from nil to $43,350. This is an expense the Board see’s well worth the investment to the future of the Jersey breed and the Association. ➢ Board meeting cost were well down on budget as COVID meant we could not travel once again. Predominantly we will be using Zoom for most meeting into the future to ensure meeting costs are maintained but the governance needs of the Association are still provided for. Net Profit An operating loss of $(108,418) compares to last year’s result of $(53,006) and a budgeted loss of $157,272.00 A net profit/loss of $(76,208) results once the total other income of $32,210 relating to investment growth is added in. Total other income is significantly lower than last year’s figure of $152,566 due to the removal of all Government support programs that helped achieve last year’s result of a profit of $99,560. Moving forward over the next twelve months the Board has made the decision to employ a Field Officer in a part time role of 0.6 FTE. This decision was made to capitalise on the positive outcomes and promotion of the Jersey Most Profitable and Sustainable Cow Project. We are seeing unprecedented demand and prices for our registered Jersey cow and want to be able to build growth in the registered Jersey sector from both current semi and inactive members along with driving growth in new membership. This will come at an investment of $71,015 for the Association and we see it as being great timing for such an investment.

To build on past and current projects we have continued to make an allowance for further project opportunities in this year’s budget should we find projects that will add value to the Jersey Membership. The budget for the upcoming year unfortunately sees a continuation of the Association running at a net loss. This is not a position that either the Board or Management are comfortable with. Although we work continually to sure up heifer exports, this is not an income stream that is to be relied upon as we have seen in the past with the beef industry, and neither is a position of relying on investments a longterm solution. A continuation of resistance to increases in member services costs and an expectation of cross subsidisation must lead the membership to an open mindedness of the Board looking at potential new revenue streams, possibly even a new look to the way Jersey Australia does business if we wish to remain a strong, resilient, and relevant business to our membership into the future. When we look at our historical revenue patterns its clear we rely too heavily on windfall and secure revenues to subsidise our provision of member services. Services should be delivered at the very minimum of cost neutral and is an objective the Association needs to work towards.

Total Revenue Investments Windfall Revenue Bushfire Appeal COVID Grants EMDG Grants Total Service Revenue Member Services Export Revenue Export % of Service Revenue

2021/22 $585,718.21 $88,383.66 $51,675.39

2020/21 $635,931.88 $35,927.93

2019/20 $756,262.65 $162,526.10

2018/19 $666,856.89 $70,451.42 $85,953.00

$113,637.90

$445,659.16 $298,236.59 $73,786.92 25%

$152,848.00 -$124.64 $447,280.59 $286,622.62 $82,477.72 29%

$73,651.11 $406,447.54 $265,949.41 $65,210.73 25%

$130,697.38 $379,755.09 $262,155.93 $73,344.00 28%

I am excited to be working for the greatest dairy cow on earth and building a strong business behind Jersey Australia to support her breeders. There is no doubt we face some challenges, but we face them working with a great team of people. Jamie Drury Treasurer

Australian Jerseys. Dairy's Finest Cow

GENETICS AND BREED DEVELOPMENT REPORT – WAYNE KUHNE It is with great pleasure that I present my first Genetics report, as chair of the Genetic subcommittee. With the aim of improved transparency between the subcommittee and the full board, as well as all Jersey Australia members. A key achievement of the year is changes that we have implemented to the structure of the classification team. This includes the appointment of 3 Senior Classifiers, Les Bennett, Reece Attenborough, and Jamie Drury. This takes a team approach with the infield leadership of the class team and has key responsibilities for training and mentoring of new and current classifiers and review of high pointed cows. I would like to take this opportunity to thank Alan Carson who completed his tenure as Head Classifier. Alan has been in this role for many years and has provided excellent leadership of the team over this time. We have also implemented a Classification oversight committee that consists of the three Senior Mentor Classifiers and the Associations General Manager. The oversight committee is chaired by Jamie Drury. With key objectives being data review of all classification tours, rule changes to classification and the continued development of the new generation classification system. The oversight committee reports to the Genetic subcommittee, then recommendations are taken to the full board. I would like to take this time to thank two retiring classifiers Alan Carson and Trevor Campbell who have served a combined 80 years of service to the Association. Their dedication and commitment to the class team is beyond reproach through their assessment and guidance, we have seen the Australian jersey cow develop to the high-quality cow we have today. Over the past two classification tours we’ve seen the highest number of cows classified in Jersey Australia’s recent history. With close to 20% increase of cows over the tours. Logistically this has been a challenge for our classification team. To ensure we can meet the service needs, there may need to be some changes to the timing of the tours. We have also scored over the past year two Ex95 and seven EX94 pointed cows. This follows recent growth trends of increased 93-point cows over the last 2-3 years. This demonstrates that the breed is continually improving for type. Over the past 12 months the breed has had a levelling and a small improvement in fertility. This trend is extremely important to the breeds future going forward. Fertility has always been an advantage of the Jersey cow. As members we must continually strive to improve and hold this advantage, with the use of bulls with an ABV of +100 for fertility. Like fertility, inbreeding is an ongoing issue within our breeds population. I would encourage members to be bold in their breeding decisions and to look outside the square and to find a point of difference. This may have a positive impact on the breed and your breeding decisions in the future. Sustainability, social and environmental issues are things that as members we must embrace. As I believe the jersey cow is well placed in these three issues. The Jersey Most Profitable Cow project has placed the breed in a good position going forward, with many advantages coming from the project.

I encourage all members to challenge themselves in their breeding objectives. Every operation has different goals and beliefs, different challenges, and hurdles to cross. Though we all have one thing in common and that is our passion for the Jersey cow. The benefits of the Jersey cow going forward I believe are limitless. Finally, I would like to thank the Genetics Sub Committee, Jersey Australia Board, and staff for their support over the last 12 months. Wayne Kuhne Chair - Genetics and Breed Development Subcommittee

Australian Jerseys. Dairy's Finest Cow

PROMOTIONS AND MARKETING REPORT – JANE SYKES What a great year it has been for the Jersey breed! With so many things happening through the year we will start at last year’s AGM. It seems like so long ago but I’m sure all participants in the AGM tour last year all agree it was a fantastic event! Thank You to the Central Gippsland Jersey Breeders Club for hosting us and providing us all with such a great time. There is no denying also the Dairy’s Finest sale event was a huge success with a sale average just over $8100. Congratulations to all vendors and purchasers. The Dairy’s Finest sale was established to be an annual AGM sale and we look forward to building on this success at many future AGM’s. With covid still playing an influencing factor on many of our usual activities it was unfortunate that some of our activities within the year were unable to proceed or modified to enable localised events. The ever-popular photo competition was well supported by members with a great number of entries from across the country. Our thanks to Fleur Ferguson for judging this year’s competition. Joanne Gowers from Tasmania was judged this year’s winner with this outstanding shot. Congratulations to all entrants, your photography is of an exceptional standard, and we see the quality of the entries grow each year. While we could not run the Great Southern and Great Northern Challenges this year, it was fantastic to see so many clubs running their local On-Farm competitions. Our thanks to all club members who did the hard yards to ensure their competitions were up and running. The On-Farm challenge is arguably the single most important competition to our members, and we look forward to the Great Southern and Great Northern Challenges returning to our event schedule in 2022. Our publications have continued to be popular and successful. The Australian Jersey Journal is the industry premier Breeder magazine, and we thank members for their advertising and content support. The JA Calendar was published and distributed to members prior to Christmas, and I also thank members who continue to support the much-loved calendar. Our publications can only continue to prosper with your ongoing advertising support. Rising cost to produce and publish both the Journal and Calendar will no doubt force the Association to consider changes if member advertising support does not continue at current or enhanced levels. An outstanding achievement for the breed and many members across the country has been the exceptional sale and breeding results that have been achieved. Record cow prices and sale results combined with high demand have been a feature of Jersey sales across the year and the results of many years of breeding have resulted in a record number of EX94 and EX95 point cows being presented to the classifiers creating much reward and excitement across the Association. This certainly demonstrates the value and return on investment of time and effort into developing and maintaining herd books. My congratulations to all.

It was a great start to the calendar year with the return of International Dairy Week in January. Congratulations to all exhibitors - it was a pleasure to see such a high-quality display of Jersey cows making and great to see so many people interested in the breed. The Jersey Milk Coffees were again a highlight as well as the pre-show coffee and donuts delivered to members in the sheds. Our thanks to SafeAg for supporting this and being on site during IDW. The Jersey Most Profitable and Sustainable Cow Project was published this year and project completed by Dr Steve Little and Scott Barnett and showed the Australian Jersey cow has many profitable and sustainable advantages over other breeds. The IDW Seminar presentation by Dr Little was highly successful and there was significant domestic and international media coverage. Our thanks to Dr Little and Mr Barnett on a well-researched and successful project. You can download the project findings on the jersey Australia website at https://jersey.com.au/jersey-most-profitable-cow-project/ or contact the office if you would like a printed copy. I urge anyone with friends interested in dairying to recommend them to look at the project findings to see how the jersey breed is truly the most profitable. In conclusion it’s been a great year in the promotion and marketing of the great Jersey breed. My thanks to the promotion subcommittee (Rob, Geoff, Hayley, and Daniel) and Glen and Lucy for their help during the year. May the 2022/23 year be just as fruitful for our great breed. Jane Sykes Chair - Promotions Sub Committee

Australian Jerseys. Dairy's Finest Cow

Jersey Australia Inc A.B.N. 25 894 603 423 Detailed Income and Expenditure Statement - Only for reference For the year ended 28 February 2022

Note

2022 $

2021 $

Income Member Services Industry Services Publication Fees Trade Mission Income Investment Income Unrealised Movement in Value of Investments Government Support Funds Other Income

298,237 99,949 47,474 - 56,190 32,210 51,658

286,622 109,257 37,974 125 36,271 77,696 152,848 13,365

Total Income

585,718

713,908

Member Service Expenses Industry Service Expenses Publication Expenses Trade Mission Expenses Database Expenses Office Supplies Depreciation Utility Fees Professional Services Insurance Bank/Finance Expenses Employment Expenses Board/Governance Expenses Subscriptions Computer Expenses State/Club Support Expenses Marketing Investment Expenses Projects Loss on Disposal of Investments

77,544 23,522 52,104 22,991 43,649 8,824 6,827 10,822 11,519 3,374 268,512 26,241 2,955 10,479 6,964 26,363 15,886 43,350 -

43,945 17,786 44,193 1,464 24,730 44,922 7,373 6,332 7,920 11,757 810 256,597 24,470 3,407 14,313 9,727 12,535 4,089 77,978

Total Expenditure

661,926

614,348

- 76,208

99,560

Expenditure

Profit/ (Loss)