<table border=0 cellpadding=2 cellspacing="0"><tr><td>
<pre>Hi to all,

You've seen Roger's suggestion that you read the AOA Draft Strategic
Plan. I suspect that many of you cannot be bothered, especially at
Easter time and so close to harvest time. It is very interesting and
will affect most growers and processors. So, with my apologies and
your permission, I've prepared a critical but hopefully constructive
overview of the plan.

Key Points Summary:
1. The document title is "Australian Olive Industry Strategic Plan
2003-2008" but in reality it is a Strategic Plan 2003-2008 for
Australian Olive Association Limited, the peak industry body.
2. Significant new funding initiatives are proposed affecting all
growers, with quite substantial revenue streams to be managed by the
AOA.
3. There are a number of real shortcomings, not least of which is the
lack of any financial forecasts to indicate proposed AOA expenditures
on industry programs they want to manage.

Discussion of Key Points:
1. This is a draft strategic plan for the Australian Olive
Association, not for the Australian Olive Industry itself. Very
briefly, here's what I see as the key issues at each level:

Key Issues for the Industry:
- how Australian growers/companies can develop effective
import-substitution strategies,
- how Australian exporters of olive products can effectively compete
in export markets,
- how to develop processing capacity for the projected olive supply.

Key Issues for the AOA:
- how to attract and retain membership from the smaller but numerous
olive growers,
- how to define its role vis-a-vis the state and regional organisations, and
- how to substantially increase its revenue base to take meaningful
policy actions.

2. The AOA is proposing some very significant alternative ways of
increasing its revenue base (in light of declining membership and
membership fees).

- A compulsory levy on fruit delivered to processors, to be spent on
industry R&D,
- A voluntary levy on fruit delivered to processors, to be spent on
promotion and admin.
- A fee on QA labels and related items for processors/producers
participating in the program.

The AOA expects to legislate the compulsory levy which will be
assessed and collected by processors. With an estimated 9 million
trees planted, even a small levy could generate substantial revenue.

3. Key shortcomings of the document include the following:

- No indication of the proposed cost of the strategy initiatives
suggested in the document,
- No section on R&D strategy and priorities for the industry (earlier
R&D plan noted),
- No intention to collect/analyse key industry data needed for
industry strategic planning,
- No plan to attract and retain industry members; this is compulsory
membership via levy,
- No substance to education, training and skills development
strategy, and finally
- No justification for proposed new organisation structure and
membership classes.

To help implement the strategic plan, an Industry CEO will be
appointed and an administrative office established.

That's enough I think :-). The AOA is calling for your views on the
Draft Strategic Plan. If you wish to make your views heard, you have
until 19th May 2003.

Regards to all,
Lambros Karavis.

P.S. The document in its 25 page entirety is available from the AOA web site.

--
--------------------------------------------------------------------------------\
---------------------------
Karavis & Associates Phone: (+61) 414 997 997
850 Buffalo-Stony Creek Rd Fax/Voice Mail:
(+61) 3 9923 6999
Stony Creek VIC 3957 eMail: lkaravis@...
Australia

[Non-text portions of this message have been removed]
</pre>
</td></tr></table>