SEMEX CONFERENCE - KEYNOTE ADDRESS
Drew Sloan Chairman of Semex emphasised the need for greater levels of business accountability, responsibility and transparency in order to guarantee the long-term future success of the dairy industry.
Mr Sloan's keynote address was delivered on the eve of the two-day Semex International Dairy Conference in Glasgow and the dairy-industry chief also acknowledged that profitability and creative marketing provided business options and opportunities.
"As individuals, we can make a difference to the way our industry is run. We need to participate and be more pro-actively involved with the way farming companies and organisations operate. As an industry, we tend not to get involved in Annual General Meetings, or ask awkward questions and generally, we leave the decision-making to others.
"But we have a right to ask questions of directors and company bosses. Our fate, our future, our destiny, is in the hands of those whom we employ to act on our behalf. We have every right to voice our concerns and we have the right to seek greater accountability on behalf of the shareholders and the company. And others have to be made aware of their accountability to us, as shareholders," he said.
Mr Sloan stated that farmers have a responsibility to ensure that companies conduct business in accordance with sound business practice as well as, a responsibility to ensure the interests of shareholders and producers is consistent with profitable long-term planning.
"We have a responsibility to ensure a profitable today; in order, that we may have a profitable future, tomorrow. And we have to take, and accept, that responsibility. It's your future; your business and your responsibility and we shouldn't let others dine-out on our apathy.
"We also need businesses to be 'transparent.' We have a right to know if suppliers are actually receiving milk price increases. And it's not just milk pricing that needs to be 'transparent.' We need business transparency all the way up to the boardroom.
"At present, our industry is shrouded in a veil of mystery and smothered by a mist of secrecy. And we're all being separated from each other by the 'fog' of uncertainty," he stated.
According to Mr Sloan, farmers were not in business to produce food but were instead, just like any other organisation and were in business to make a profit and receive a fair return on capital investment.
He urged caution and warned the sell-out conference that the "goal" of profitability could not be achieved by militancy and that the way forward for the industry was by creating new brands, brand-awareness, initiating top-class marketing as well as the continual introduction of added-value products.
"We cannot rely on others to come to our rescue and we have to take the initiative. We have to build our own brands and embark on a voyage of discovery by venturing into the new world of price-maker and opportunity.
"Like any other industry, the milk-industry 'vehicle' is driven by profit. And without a profit, there isn't a vehicle. And without a vehicle, there isn't a business-driver. Without drivers, there can be no staff and without staff, there's no milk. Profit gives you options and where there are options, there is opportunity."
Mr Sloan stated the farming industry also had a responsibility to encourage the development of youth as well as employing the best available talents in order to provide 21st Century solutions to 21st Century challenges. The industry now required astute businessmen and businesswomen capable of negotiating, analysing and taking the right business decisions.
"We need to invest in people; and we need to invest in youth. We need to provide opportunities for young talent to emerge, to be encouraged, developed and nurtured into positions of power and responsibility.
"We cannot provide a secure future for our industry unless we provide opportunities for youth to interact, gain knowledge, experience life and experience various business-related activities.
"We must also seek out new markets, new products and new initiatives. We must create new companies and develop business-leaders. We must become entrepreneurial, dynamic, market driven, completely focused, as well as the custodians and creators of wealth for our industry," he concluded.
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