Failed technology project comes at high cost
OSPRI has apologised to levy-payers for the cost of its failed major technology upgrade and says it will now focus on rebuilding a national animal identification and tracing (NAIT) programme that in future will be able to integrate with its other systems.
This follows what those who own the organisation describe as significant issues with the intended MyOSPRI upgrade; a $16.6 million dollar write-off, resignation of chair Paul Reynolds and the appointment of three new OSPRI directors.
The heads of Beef + Lamb New Zealand, DairyNZ and Deer Industry NZ say they are very disappointed in the financial impact of the ditched platform, which was supposed to integrate animal disease management and traceability.
Work on the Information Systems Strategic Plan (ISSP) began five years ago.
It was supposed to simplify data input for farmers, and enhance data sharing across OSPRI programmes but cost overruns and delays led to it being paused earlier in 2024.
A subsequent review found it was overly complex, not fit for purpose and would be costly to maintain, hence the big write-off in the 2023/24 accounts which was equally accrued to NAIT and TBfree.
“We are working hard to rebuild the balance sheet through driving better efficiency and savings. But we can assure stakeholders we are still able to fully deliver our programmes,” Kate Acland, Tracy Brown and Paddy Boyd say.
“It is clear that OSPRI’s leadership and capability in relation to this technology upgrade needed significant improvements.
“These new arrangements, underpinned by the revised legal constitution, will enable shareholders and funders to keep OSPRI accountable for providing greater transparency, performance, and decision-making into the future.
“The improvements made give us confidence the organisation can deliver on its promise to provide a NAIT replacement system that meets the needs of NZ’s primary sector.
“We are assured that these issues do not affect the existing NAIT programme, and farmers can continue to depend on NAIT for traceability and disease management purposes.”
Following reviews of both the planned new system and OSPRI’S governance structure, they say several improvements have been made to ensure OSPRI is successful in the future.
These include formation of a new shareholders and funder group with a direct role in monitoring the overall performance and functioning of the OSPRI board.
The board is accountable to this group, with formal reporting and quarterly meetings with senior industry representatives and MPI.
This group takes over the responsibility for selecting director candidates for the OSPRI Board.
Three new directors have been appointed to fill current vacancies on the OSPRI Board, effective from 1 November, namely DairyNZ director Mark Todd, B+LNZ director Alexandre Guilleux, and former OSPRI board observer Hugh Martyn, who chairs Waimakariri Irrigation.
Separately, two new directors, FarmRight shareholder and director Tony Cleland, and AgResearch and Tatua director Louise Cullen, have replaced outgoing directors James Parsons and Fenton Wilson after OSPRI’s annual meeting late last year.
The stakeholders’ council has been dis-established and replaced with a stakeholder forum, meeting at least every six months, with an aim to facilitate deeper engagement between OSPRI and its stakeholders and enable OSPRI to receive feedback on the operation of OSPRI and its subsidiaries.