Chair Update - 6 March 2025

Murray Irrigation held its annual strategy session on Tuesday 25 and Wednesday 26 February, followed by the first Board meeting of 2025 on Thursday 27 February.
 
Members of the Management team joined the Board for the first two days' discussion on the future challenges faced by Murray Irrigation including Basin Plan and buyback impacts.
 
Before I provide an update of the two days, I’d like to acknowledge the work of Management and the Board in preparing for the strategic planning sessions. This included providing current project updates, analysis on potential future initiatives and a clear concise process for updating the company's Strategic Plan, where necessary, over the course of 2025. A number of key topics were discussed, and we are taking a deep dive on specific areas to ensure Murray Irrigation continues to meet key current objectives, deliver on our commitments to shareholders and customers, and grow Murray Irrigation to ensure we can continue to benefit shareholders, the region and deliver water for future generations.
 
Strategic planning
 
There are two stages to the strategy development process: completing the existing work and developing a new strategy to address the emerging issues.
 
The strategy session began with an analysis of the current Strategic Plan set in 2022. Murray Irrigation continues to work toward many of the strategic initiatives and projects within the current plan, some of which are outlined below (project updates). Minor adjustments are being made to the vision and mission statements. As we progress and complete projects aligning to the current strategic plan throughout 2025, an evolution of the current strategic plan that creates economic benefit for our shareholders through delivering additional water through our infrastructure will be drafted for the Board to approve and begin implementing in March 2026.
 
Project updates
 
Management provided the Board with a detailed update on the current strategic projects being undertaken by the business including:

• Restoring Murray Waterways. The overarching objective of this project is to deliver better environmental outcomes using water already recovered through water reform more efficiently. This project's outcomes include the upgrade of existing infrastructure both within the Murray Irrigation channel network (escapes, channel upgrades), and on private land (creek crossings and fences) within the region’s rivers, creeks and wetlands to build on and enhance environmental water events by delivering water into natural assets via Murray Irrigation’s channel network.
• ICT Transformation. This project is designed to increase Murray Irrigation’s efficiency through improved business processes and automation, as well as improve staff efficiency through modern integrated systems and training.
• Foundational Asset Condition Assessment Project. This project will inform the improvement of the company’s long-term condition monitoring strategy which will assist the company to provision financially and physically for the intergenerational sustainability of Murray Irrigation’s infrastructure.
• Feasibility Study. This project is being undertaken in conjunction with Murrumbidgee Irrigation and Coleambally Irrigation with the goal of minimising impacts of further water recovery in our regions by working with both the NSW and Commonwealth Government.

 
While these projects are at various stages of completion, it is pleasing to see the progress made in these areas and the staged delivery of outcomes that align to the current strategic plan objectives. 

Future focus
 
A key topic of focus throughout the two-day session was around potential new water market-based initiatives or products that might assist in retaining water in the Murray Irrigation footprint. The idea of a ‘Water Fund’ was tabled during the September 2024 shareholder discussion groups. During these meetings, shareholders were generally supportive of the concept, with the majority interested to learn more about how this would look. We are undertaking further work into this potential initiative over the coming months.
 
Four areas of discussion that Directors, shareholders and customers have raised with the company in recent months included:

• Governance best practices, including Board composition and skills to achieve ongoing stability, capacity and commitment.
• Shareholder engagement activities to share strategic ideas and gain feedback.
• Alternate revenue streams to offset the financial impacts of buybacks and ensure financial stability of the company while keeping fees and prices increases to CPI only until 2029.
• Water use and delivery entitlements to ensure the company has the most appropriate structure in place for water delivery, asset utilisation and fee collection.

 
Shareholder engagement
 
It was agreed that the Board will host a round of shareholder meetings in July this year to share, discuss and gain feedback on the next stage of the strategic planning and investigations underway. These engagement sessions will be structured through a lens that focuses on what Murray Irrigation can influence and control to grow the company for the benefit of its shareholders, customers, community and the next generation.
 
Further to this, the Board will be hosting informal barbecues in Finley and Wakool after the May and June Board meetings.
 
Further information on all these events, including dates, times, locations and how shareholders can participate, will be shared once details are finalised in the coming months.
 
We also discussed how Murray Irrigation as a company can support the next generation of leaders within the footprint. Further work is being undertaken on possible scholarships and mentoring programs. We look forward to sharing further information on this in due course.
 
I thank my fellow Board Directors and management for their contributions to these robust and respectful discussions over the two-day session. It was both challenging and inspiring for Directors to examine what Murray Irrigation will look like in five to 15 years’ time.
 
The Board will be meeting again at the end of March 2025 in Griffith and will be taking the opportunity to meet with Directors from Coleambally Irrigation and Murrumbidgee Irrigation.
 
I look forward to providing you with another update after the next Board meeting in March.

If shareholders have any questions, please contact the Company Secretary on:
T. 1300 138 265
E. companysecretary@murrayirrigation.com.au

Phil Snowden

Murray Irrigation Chair

M: 0427 839 217

Delivering for our farmers, community and environment