meat industry strategic plan 2020 mid-term achievements...

Meat Industry Strategic Plan 2020Mid-Term Achievements ReportMarch 2018

Contents

Preface & partners

What has been achieved 2015-2017

An overview

Consumer and community support

Market growth and diversification

Supply chain efficiency and integrity

Productivity and profitability

Leadership & collaborative culture

Further information

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Mid-Term Achievements Report | 1

The Meat Industry Strategic Plan 2020 (MISP2020) provides an overarching strategy to enable the Australian red meat and livestock industry to target areas for investment that will have the greatest impact on industry sustainability and prosperity. It has an ambitious economic goal of unlocking up to $7 billion in growth by 2030 for Australia’s 75,000 red meat and livestock businesses. The MISP is being implemented through a collaborative partnership between RMAC members and partners, ensuring that the research & development and marketing investments, and the policy agendas are aligned.

MISP2020 Partners

MISP2020 is coordinated by the Red Meat Advisory Council (RMAC). Organisations involved in its implementation include RMAC Members – Cattle Council of Australia (CCA), Sheep Producers Australia (SPA), Goat Industry Council of Australia (GICA), Australian Lot Feeders’ Association (ALFA), Australian Livestock Exporters’ Council (ALEC) and the Australian Meat Industry Council (AMIC) and RMAC Partners – Meat & Livestock Australia (MLA), the Australian Meat Processor Corporation (AMPC) and the Australian Livestock Export Corporation Ltd (LiveCorp). These organisations were consulted in the development of the MISP2020 mid-term report.

Preface & partners

Industry Oversight

Policy and Advocacy

Research, Industry Development and Marketing

2 | Meat Industry Strategic Plan 2020

What has been achieved 2015-2017

A MISP2020 Mid-Term Progress Report has been undertaken to assess progress made towards achieving the MISP goal for growth in the industry, and to help address challenges and make recommendations to further enhance implementation. This evaluation involved analysis of the MISP economic model, a desk-based review of partner documents and consultations with stakeholders and partners. It was supported by an Industry Reference Group made up of representatives from the Peak Industry Councils.

This Achievements Report is a summary of what the assessment found, outlining key achievements by industry partners to October 20171, and how the industry is tracking. So what did it find?

1 The MISP2020 Progress Report, which informs this Achievements Report, was based on information current as of June 2017 for the Issues Analysis and October 2017 for Partner Activities. Coffey acknowledges that further outcomes have been achieved by the industry since these dates which are not included in this Report.

“To help address challenges and make recommendations to further enhance implementation.”


Total industry expenditure on Research, Development and Marketing was around $230 million in 2016-172.This expenditure was funded through $124 million statutory member levies (producer, processor and exporter), and a range of other sources, including government ‘matching of R&D expenditure’ and industry co-funding. In addition, Advocacy is funded through a range of other resources.

There have been significant industry gains made in just the first two years.

• Under MISP, net industry income was estimated to increase significantly, to $7 billion by 2030. While it is estimated that this figure may not be reached, it is estimated that real net income will grow significantly, with net industry income for 2030 estimated to be close to $6.5 billion.

• There is a growing culture of collaboration and supportfor the MISP. MISP stakeholders commended the MISP and recognise the value of a whole-of-value-chain approach that is based on independent industry consultation, expert group analysis and economic modelling. In turn, the MISP implementation process to date has:

— directly influenced the structure and content of all nine partner’s strategic and operational plans;

— aided ‘big picture’ communication with their stakeholders;

— had a mixed influence on increasing partners’ focus on outcomes, with little investment to date by most partners in the development of robust monitoring and evaluation systems.

In order to better enhance delivery capability, MISP partners are committed to developing a Results Framework that enhances the industry’s ability to track the impact of investment and modify activities to best target areas for growth extending into the next MISP.

Anoverview

2 Total combined expenditure by the MLA, LiveCorp and AMPC was just over $230 million for 2016-17. This figure is likely a conservative estimate of industry expenditure on research, development and marketing. While there is some cross-funding between the service providers for joint program activities (and thus an overstatement of total expenditure), the expenditures of AHA, NRS and the industry policy councils are not included in this calculation.

$230 m in 2016-17

$6.5 b by 2030


Key achievements consumer and community support

A Highlight – Industry commitment to driving improvements in livestock wellbeing

The industry is taking animal welfare seriously, with a whole of supply chain approach to animal welfare that links through producers, feedlots, processors, transporters and exporters. A wide range of activities are being undertaken to improve animal welfare outcomes and inform consumers and other stakeholders about this. The upgrading of the Livestock Production Assurance Program (LPA), strengthening of the animal welfare elements of the National Feedlot Accreditation Scheme (NFAS), continued application of the Australian Livestock Processing Industry Animal Welfare Certification System (AAWCS), review of the Australian Standards for the Export of Livestock (ASEL), development and implementation of the Livestock Global Assurance Program (LGAP) and the roll out of electronic National Vendor Declarations (eNVD) are all likely to have a significant impact on practices across the supply chain, and will also ensure that data is available to measure outcomes relating to animal welfare.

Other Key Achievements

• Reflecting the importance of the Livestock Global Assurance Program (LGAP) to the Australian red meat industry, the2017/18 Federal Budget allocated $8.3 million over four years in Commonwealth funding to support its future implementation. In mid-2014, the Australian livestock export industry began the development of LGAP, to foster world’s best practice in the management and welfare of livestock. LGAP standards cover the management of livestock by Operations (ie exporters and importers) and Facilities (ie feedlots, farms and abattoirs) across the supply chain to point of slaughter. The LGAP is a complement to the Australian Government’s regulatory compliance program, ESCAS, and aims to strengthen the commitment, oversight and management of welfare along the supply chain. A process of development, piloting and consultation led to the release of LGAP standards in early 2017.

• A significant decline has been achieved in mortality rates during ocean transport through better management and ship design, to the extent that losses are now comparable with or below normal farm rates (Australian Farm Institute, May 2017).

• Baseline animal welfare practices reports have been completed for sheep and cattle and applied inbenchmarking analysis.

• Consumer sentiment remains very positive, with only 3.2 per cent of people surveyed in the annual consumer survey saying they limit their red meat consumption

due to animal welfare concerns and 1.6 per cent limiting consumption due to environmental concerns — against a MISP target of 7per cent.

• In 2017, over 6000 consumers were reached through producerengagement and school programs; and over 1770 education resource downloads were made from the MLA website.

• 7000 producers now have access to on-line disease analysis of carcasses through Livestock Data Link.

• Online training packages in Emergency Animal Disease and an exotic species response for the red meat processing industry have been developed. Companies are now more prepared for outbreaks such as the recent anthrax sheep death in north-west Victoria and MINTRAC is in the process of making the course available for the whole industry as part of VET qualifications.

• A suite of training materials and workshops on wastewater management and biogas capture, storage and combustion relevant to the red meat processing sector has been produced.

• Red meat remains a core part of the Australian Dietary Guidelines and industry will continue to promote the inclusion of this with the Australian Government. In annual consumer surveys, fifteen per cent of respondents said that they were limiting consumption of lamb for health reasons (against a MISP target of 19 per cent) and nineteen per cent said that they were limiting beef consumption for health reasons (MISP target of 15 per cent).


A Highlight – Working with the Australian Government to grow red meat markets

Progress has been made on non-tariff barriers in Indonesia (secondary cuts), China (chilled product access) and the Middle East (shelf life provisions). Non-tariff barriers to trade have been identified as a more important cost to the industry than previously recognised – the value of lost sales is now estimated to be around $3.4 billion per year (up from the estimated $1.3 billion in 2012). Key industry led research (the Harris Report 2016) confirmed that there are a large number of non-tariff barriers that require attention and that resources should be devoted to a sustained reform effort, requiring an ongoing co-ordinated industry effort in partnership with the Australian Government.

Other Key Achievements

• Industry partners have continued to be proactively engaged in advocacy and policy work around economic and technical barriers to trade, including: participation in working groups, meetings and delegations; preparation of submissions, correspondence and advocacy strategies; participation in business delegations overseas and the organisation of visiting delegations to Australia; attending briefings with visiting Ambassadors, and maintaining strong relationships with various Australian government agencies including Department of Agriculture, and Water Resources, Department of Foreign Affairs and Trade, and the Department of Industry, Innovation and Science.

• The Livestock Export Program’s (LEP) in-market programsundertook a range of activities to build new, and support ongoing, trade and market access, including over 25 visits, workshops and meetings with key stakeholders across the Europe/Middle East and Africa region in 2017,

• Market access was maintained or enhanced in key markets through negotiation and dialogue, including successful renegotiation of cattle protocols with Malaysia, recommencement of trade with Japan and ongoing dialogue around feeder and slaughter cattle protocols with China. 2017 saw the first live slaughter cattle shipments to China under industry benchmark ESCAS arrangements. This opened up this key market, now considered the worldslargest beef market.

• Despite the US withdrawal from the Trans Pacific (12 country) Partnership (TPP) Australia has maintained active participation in achieving an 11 country partnership. The lost market opportunities with the USA withdrawing from the TPP are substantial, however an 11 nation agreement will retrieve some of the opportunities albeit later than anticipated in the MISP2020.

• Surveys showed that there are an increased percentage of global consumers preferring Australian red meat, with 24 per cent of consumers ranking Australian beef as their first preference (MISP target is 22.2 per cent); and 26.5 per cent preferring Australian lamb (with a MISP target of 20.6 per cent).

• Linked to this, surveys showed that an increased proportion of domestic main grocery buyers are prepared to pay a premium for Australian red meat, with 24 per cent saying they would pay more to buy Australian beef (MISP target 20 per cent); and 24 per cent saying they would pay more to buy Australian lamb (MISP target 22 per cent).

Key achievements market growth and diversification

Mexico

Vietnam

Japan

Malaysia

Chile

Singapore

Australia

Canada

New Zealand

Peru

Brunei

lamb

lamb

24%

24%

beef

beef

26.5%

24%


A Highlight – Better beef eating provides gains back to businesses

The Meat Standards Australia (MSA) beef index continues to improve, leading to increases in farm gate revenues as consumers pay higher prices for MSA accredited and compliant cattle.

Other key achievements

• DEXA (Dual Energy X-Ray Absorptiometry) is supplying lean meat yield at one location (on target) and the first beef DEXA trials in a plant have begun. Objective carcass measurement (OCM) is progressing.

• Six processors are trialling technologies for measuringeating quality.

• Value based pricing models have been developed and published. Testing is underway with participating processors.

• The National Livestock Identification System (NLIS) databaserefresh has been completed.

• There is almost complete producer awareness for NVDs (97 per cent) and NLIS (99 per cent). There is no change in producer awareness and compliance with LPA integrity systems (74 per cent, which is the same as in the 2015 survey).

• The Integrity Systems Company, which is to incorporate SAFEMEAT (including NLIS, LPA and NVDs) was established in late 2016.

• Five new animal identification and in-market traceability studies have been shortlisted for feasibility review.

• There is a very high level of NLIS recorded property to property movements, almost 96 per cent. New methods for process monitoring and interventions are being developed for the food safety integrity program.

• eNVDs trials have been completed, and the roll out has commenced, but uptake is less than the target ten per cent. It is anticipated that this rate will increase as more processors adopt this technology.

• An improved Product Hygiene Indicator system has been developed and is being trialled which is straight-forward, focused on ‘testing what you sell’ and compliant to Australian requirements. The objective is to enhance process control, and by extension food safety.

Key achievements supply chain efficiency and integrity


A Highlight – New infrastructure for new technologies for food manufacturers

Annual productivity benefits of automation technologies installed in 2016-17 have reached $44 million per year.


• Profitable Grazing systems for sheepmeat producers have been approved for full roll out.

• In 2017, over 500 producers engaged in demonstration site projects exceeding the inital target of 350.

• A National Livestock Genetics Consortium Taskforce was appointed after considerable industry consultation to provideincreased collaboration, communication and investment in the livestock genetics sector. The primary aim of this initiative is to significantly increase the rate of genetic progress achieved in the sheep and beef industries. Seventeen genetics and genomics projects have been recommended for funding for beef and sheep.

By region

By sector

• The goat herd forecast has been completed and reported to industry; a goat growth trial was finalised and reported to industry.

• Feedlot productivity

— A project is underway to examine potential to automate the feedlot induction process.

— Research was completed and reports presented on enzyme dag treatment, feasibility of using feedlot manure for biogas production, feedlot dust suppression, protein requirements of feedlot cattle, grain processing, heatload forecasting, and the effect of immune competence traits during yard weaning on feedlot performance and health.

— The Productivity Commission handed down Ethanol Mandate findings in line with industry policy.

• Processing efficiency

— Improvements to the Robotic Bandsaw Operations project have been completed. This project focused both on improving partial automation and working towards an automated system that would incorporate 3D computer vision, algorithmic cut path generation, and computer visualizations – increasing safety and productivity, and reducing waste.

— Annual productivity improvements from the installed automation technologies have reached $44m per year (2016-17).

• Live export productivity

— The supply chain is being enhanced through themodernisation of the shipping fleet as well as improved infrastructure such as the upgrading of the livestock export yard at Berrimah Yards near the Port of Darwin.

Key achievements productivity and profitability

Northern Australia

Southern Australia

A legume management project is underway; the Northern feedbase sustainability plan is being complied, and grazing guidelines (with both a production and environmental focus) have been drafted.

There have been significant improvements in the rate of genetic gain across the national flock.

The pasture variety trial network data and website has been reworked and publicly released.

Development workshops for the southern feedbase plan have been held.

Outputs from Sheep CRC genetics programs have been embedded into Sheep Genetics evaluations.

Barriers to adoption of lamb survival best practice strategies market research have been completed and a plan developed.

Business EDGE courses have been delivered in NSW, VIC, Tas and SA.

Major R&D Production efficiency projects have been completed targeting improved management of phosphorous supplementation, enhancing compensatory growth, planting and management of lucaena.


The process was led by the Sustainability Steering Group, an 11-person grass roots industry group from across all industry sectors. The 12 month process of consultation and development involved input from people across the industry supply chain - producers, lot-feeders, processors and live exporters – and stakeholders from outside the beef industry, including customers, investors, retailers, regulators, and special interest groups. This was followed by a period of public consultation to gather grass-roots input.


• A broad range of professional development activities were undertaken for producers, lot-feeders, processors, and exporters, designed to build industry capacity and capability. There has been an increased focus on leadershipdevelopment through such programs as the Australian Leadership Development Program and high level meat processing qualifications.

• State of the Industry: the Australian Red Meat and Livestock Industry Report was released and launched at the Australian Parliament House. This report provides strong evidence of the significant economic and cultural value of the industry to Australia, supporting our ongoing advocacy work with the Australian Government.

• The Equitable Funding Models Project was initiated, which will ensure a long term model for the sustainable investment of industry levies.

• Feeding our People 2017, a whole-of-value chain advocacy statement was released, resulting in significant engagementfrom decision makers in Cabinet and Opposition.

• Policy leadership forums, including the Red Meat Roundtable– breakfast with the Deputy Prime Minister, and the Shadow Cabinet “Meat and Greet” were held to connect the business community directly with decision makers and build the industry profile.

• The Annual Intercollegiate Meat Judging Program delivered to over 150 participants in 2017.

Key achievements leadership &collaborative culture

A Highlight – Working better together to promote sustainability credentials from paddock to plate

The Beef Industry Sustainability Framework (ABSF) has been developed and publicised. The ABSF was published in March 2017. This framework aims to guide industry action that facilitates sustainable beef production in Australia, and supports the measurement and reporting of this to the wider community. The development of the Framework required a high level of collaboration across the industry.

“This framework aims to guide industry action that facilitates sustainable beef production in Australia, and supports the measurement and reporting of this to the wider community. ”


This report has been prepared in conjunction with RMAC, and relies on information provided by MISP partners and other MISP stakeholders, as well as the economic modelling that underpins the MISP. No warranty of completeness, accuracy or reliability is given in relation to the statements and representations made by, and the information and documentation provided by, RMAC management, MISP partners and other MISP stakeholders and personnel consulted as part of the process. The M&E systems being implemented by partners vary in completeness and effectiveness, and this has impacted on the ability of Coffey to collect outcomes data that should inform the analysis of progress to date.

For Further Information:

Contact RMAC email: [email protected] phone: (02) 6269 5606

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