BC Chicken Industry Strategic Framework Update › wp-content › uploads › 2020 › 03 › 2020-03-03... · 2020-03-12 · FINLEY & ASSOCIATES LTD.MARCH 2020 1.CONFIDENTIAL .WORKING

FINLEY & ASSOCIATES LTD . MARCH 2020 . CONFIDENTIAL . WORKING DRAFT 1

BC Chicken Industry Strategic Framework Update

BC Poultry Conference, Vancouver March 5 & 6, 2020 Discussion Guide Finley & Associates Ltd. (20-03-03)V2

“The secret of change is to focus all of your energy, not on fighting the old, but on

building the new.” Socrates

3 FINLEY & ASSOCIATES LTD . MARCH 2020 . CONFIDENTIAL . WORKING DRAFT

Both Boards are committed to a strategic planning process and have accepted that doing different things and strategic repositioning includes regulatory change:

BC-BHEC:

• Jim Collins, Chair

• Joe Neels, Vice Chair

• Allan Mulder, Member

• Calvin Breukelman, Member

• Beata Kunze, Member

• Stephanie Nelson, Executive Director

BC-CMB:

• Harvey Sasaki, Chair

• Alistair Johnston, Vice Chair

• Derek Janzen, Director

• Ray Nickel, Director

• Gay Hahn, Director

• Christine Rickson, Executive Assistant

• Bill Vanderspek, Executive Director Source: BCCMB & BCCMB Joint Summit #1 & #2, September 25, 2019 and January 13, 2020.


The develop of a strategic framework for the BC Chicken Industry is about...

Source: BCCMB & BCHEC February 2020; Finley & Associates Ltd.

Continuous Improvement Strategic Repositioning

Doing the Same Things Better

Doing Different Things

Working Independently and in Isolation

Working Collaboratively with a focus on key priorities

1) … a major step change in performance and representing shifts…

2) … engaging the sector to provide input to contribute to regulatory reform led by the two Boards


This effort is about a major step change in performance.

Source: Finley & Associates Ltd.

Continuous Improvement Pe

rfo

rman

ce

Strategic Repositioning

Perf

orm

ance

Large scale, permanent step change

Doing the Same Things Better Doing Different Things


1. Evolve a 3-5 year strategic direction for the chicken industry in BC.

2. Engage stakeholders on the proposed priorities for the industry.

3. Strengthen relationships across the industry’s Value Chain.

4. Provide the basis for developing a 3-year Strategic Plan for each of BCCMB and BCBHEC.

Source: BCCMB & BCBHEC – Summit #2, January 13, 2020; Finley & Associates Ltd.

Objectives of our strategic planning process:


The imperative for change: Why now? Dysfunction in the BC industry is compounding the following problems:

1 Costs throughout the chain continue to escalate, including the

implementation of national policies and strategies to address

consumer trust and confidence are adding costs at all levels of the

value chain that are not being passed on to consumers.

2 Returns are diminishing due to the linkage of the live price to

Ontario, which has taken in excess of 10 cents/kg out of the live

price across the country and have adversely affected the BC

industry.

3 Lack of effective processes and practices to promote collaboration

and communication within the value chain and promote

innovation.

Source: BCCMB & BCBHEC – Stakeholder Survey Summary March 2020; Finley & Associates Ltd.

Problem Statements



Survey respondents overwhelming agree with the problem statement.

0

10

20

30

40

50

60

70

80

Problem 1 Problem 2 Problem 3

Problems in the Chicken Industry

Yes No

87% 93%

80%

13% 7%

20%


BCCMB and BCBHEC’s Boards identified the following strengths and weaknesses for the BC Chicken Industry.

BC Chicken Industry Strengths BC Chicken Industry Weaknesses

• Very close proximity (from farm to fork) • Regulated system’s ability to embrace and

sponsor change • More progressive (innovative) • Weather/climate • Traditionally aggressive processors • Consumers (Chicken eating people) • Production • Consistently supply high quality chicken to the

market • Emerging disease response • Industry can work together (relationships

between Boards) • Infrastructure • Efficiency

• Close in proximity (e.g., disease); density • Unwillingness / lack of regulatory authority to

create a united collaboration • High cost of production (feed deficiencies) • “Alone” in West • Resistance to change (desire to maintain status

quo) • PPACs (practices) • Collaboration / Communication across Value Chain • Emergency response to animal activism • Lack of performance measures • Poor investment climate • Disjointed approaches to things • Don’t understand dynamics of each others’

industries • Availability of labour • Lack of leadership (sense of ownership to things

that will make impact; lack of critical thinkers) • Execution

Source: BCCMB & BCCMB Joint Summit, September 25, 2019; Finley & Associates Ltd.

STRATEGIC FRAMEWORK


Industry risks were identified and prioritized.

Industry Risk

1. Unsustainability

2. Lack of industry vision

3. Uncoordinated initiatives by individual value chain players

4. Disease Outbreak

5. Flock Health Management

6. Lack of information

7. Succession Planning

8. Activism

9. Loss in consumer confidence

10. Concentration of Fraser Valley

11. Government Policy

12. Inability to supply market (e.g., due to disease outbreak; activism)

13. Loss of market share of protein market

Source: BCCMB & BCCMB Joint Summit, September 26, 2019.

STRATEGIC FRAMEWORK

High Risk

Medium Risk

Low Risk


Over half of Survey respondents identified “Activism”, “Government Policy”, and “Uncoordinated initiatives” as the top risks facing the Chicken Industry (1/2).


STRATEGIC FRAMEWORK

0

5

10

15

20

25

30

35

40

45

50

1. Activism 2. GovernmentPolicy

3. Uncoordinatedinitiatives by

individual valuechain players

4. Lack of industryvision

5. Diseaseoutbreak

6. Unsustainability

Risks in the Chicken Industry

High Medium Low

60%

32%

8%

59%

33%

8%

55%

28%

17%

43%

39%

19%

40%

52%

8%

36%

28%

36%


Continuation of survey respondent rankings of risks facing the Chicken Industry (2/2).


STRATEGIC FRAMEWORK

0

5

10

15

20

25

30

35

40

45

7. Flock healthmanagement

8. Lack ofinformation

9. Concentration ofpoultry productionin the Fraser Valley

10. Successionplanning

11. Loss of marketshare of protein

market

12. Loss inconsumerconfidence

13. Inability tosupply market (due

to diseaseoutbreak; activism,

etc.)

Risks in the Chicken Industry

High Medium Low

35%

48%

17%

33%

28%

39%

32%

55%

13%

24%

43%

33%

20%

37%

43%

19%

33%

48%

13%

44% 43%


The Board and the Commission prepared a preliminary vision for the BC Chicken industry:

Source: BCCMB & BCCMB Joint Summit, September 26, 2019; BCCMB & BCBHEC – Stakeholder Survey Summary March 2020; Finley & Associates Ltd.

Redesign the environment to deliver sustainability and performance of the entire chicken sector.


This is only a start and this process needs your engagement:


Joint Industry

Summit #2

Online Survey

Poultry Conference

Special Meetings

Joint Industry

Summit #3

• AGMs (Mar 5 – BCCMB, Mar 6 – BCBHEC)

Joint Industry

Summit #1

Sep 2019 Jan 2020 Feb 2020 Mar 2020 Apr - May 2020 Jun 2020


Your input is essential.

Stay tuned, the Board and Commission will be contacting you to:

Present and discuss the key elements developed to date.

Review the survey results.

Seek input and views on key strategic priorities to move the industry forward.


Documents

BC Chicken Industry Strategic Framework Update › wp-content › uploads › 2020 › 03 › 2020-03-03... · 2020-03-12 · FINLEY & ASSOCIATES LTD.MARCH 2020 1.CONFIDENTIAL .WORKING