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CHIEF EXECUTIVE'S REPORT
Let me start by saying how honoured I am to assume the role of Holstein UK Chief Executive ahead of the Centenary year. It
has been a pleasure to witness the enthusiasm and dedication shown by members towards the Society. It has however, been a
difficult year in which to assume responsibility with the industry under enormous pressure, large fluctuations in milk prices and
increasing legislative demands, both actual and potential with respect to disease control, compensation and responsibility &
cost sharing to name but a few. The economic downturn has not served to enhance our financial position with property revalua-
tions required at a time when property prices had steeply declined. In addition we have had the exceptional activities and cost
of the Centenary itself to contend with. Despite all this, the Society preformed better than expected at an operating level and
made a number of significant steps forward in the improvement of the breed through research and IT development initiatives.
One of the major areas of criticism expressed, as I met with members, was the slippage being experienced in classification
visits. During the year a major exercise was undertaken to find a solution to this problem. A new routing system as well as IT
infrastructure has been developed and rolled out. The impact of this will take effect during the next 12 months.
The major activities undertaken through 2008 and the beginning of 2009 have focussed on the assessment of the Society’s
operations, the resolution of some immediate operational issues and the develop of a new strategic plan. This long term plan
was signed off at the beginning of 2009.
Operational performance
The charity has put in a strong performance over the year with key indicators demonstrating the following;
Incoming resources increased by £398,626 (excluding investment income) to £6,733,461 despite a reduction in investment
income of £62,520 in the year.
Outgoing resources increased by £470,727 (excluding investment diminution and release of losses).
Investment assets performed less well during the year with land property revaluation generating a loss of £718,377 (£410,959
Property and £307,418 Investments). I would expect that this negative adjustment to asset values will correct, in line with the
overall correction of the property and stock markets over the next 24 to 36 months. Rental income has also reduced in the
year as available rental space in the market has increased and yields have declined. We will be seeking to improve our space
utilisation during the coming year to release more space for rental and improve our yield.
Overall, we continue to follow a prudent fiscal approach to the operations of the Charity. The Charity has no borrowings, actively
maintains a low level of debtors and retains a strong balance sheet. This will enable us to be well positioned to take advantage
of opportunities to develop its charitable services. Part of this approach is the intention to return to a position where we have
asset cover equivalent to 12 months running costs. We anticipate this being achieved within the next 24 months.
The charity generated an additional income of £345,946 from trading operations during the year, an increase of 13% on
2007/2008.
Our investment policy remains under regular review with the intention of ensuring that we maximise the Society’s return from all
asset classes and reduce our investment risks. It was in this regard, the property assets of the Society underwent a review.
All improvements have been achieved without financial support through investment. Indeed, the charity reinvested a further
£76,900 during the period 2008/2009.
Membership numbers have remained broadly stable with 283 new members joining and 401
leaving. This is an encouraging sign against the industry overall with a reported 3 dairy farmers a week leaving.
The statistics for registration and classification contained within this report reveal that business continues to improve and the
classifications analysis and the changes modelled into the inspection process sees a positive move towards achieving the 7
month cycle.
ANNUAL REPORT 3
2008-2009 Annual Report.indd 5 22/09/2009 16:19:52
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