red meat industry strategic plan framework draft v6

The Tasmanian Red Meat Industry Strategic Plan

Working Together for Tasmania

tasmanian red meat industry strategic plan 1

Tasmanian Agriculture’s Quiet Achiever.Livestock production is one of the main agricultural sectors in Tasmania, contributing 56% of the state’s Gross Value of Agricultural Production in 2012/13 according to the Australian Bureau of Statistics (ABS). Year in year out, the Tasmanian Red Meat Industry quietly goes about its business without fuss or fanfare and delivers a product that is recognised nationally and internationally for its quality. Tasmania consistently has the highest level of compliance for the Meat Standards Australia grading system. The ABARES conference in Devonport in March 2015 revealed in their latest figures for 2012/13 that both sheep meat and beef farmers were more profitable than their dairy industry counterparts.

The Tasmanian Red Meat Industry has a significant influence on the lives of most people and communities across the state’s farming sector. ABS data shows that there were 3,395 farms in Tasmania in 2012/13 and because of the highly diversified nature of the enterprises on our farms; hardly any would not run some form of livestock. That said, the majority of these farms 2,484 (64%) generate most of their annual production value from livestock enterprises.

Recently the Red Meat Industry in the state was identified as one of the key areas of opportunity for growth in the Tasmanian agribusiness sector (Rabobank). Indeed back in 2009, Jonathon West (Australian Innovation Centre Director) claimed that it could be a billion dollar earner for the state. The burning question is how do we get there? The answer of course is that it won’t just happen; we need a strategy to ensure success.

This strategic planning process aims to improve the sustainability of the Tasmanian red meat production system by encouraging innovation that will improve its economic viability but also focus on animal welfare, environmental management and social issues. Worldwide consumers have demonstrated an increasing interest in knowing how their food is produced. Therefore the principles of the strategic plan communicate the industry’s commitment to utilise recognised best practice in the key areas of; environmental footprint (biodiversity, energy, air, water and soil), worker care, animal welfare and food safety. These commitments are not only ethically appropriate, but they will provide benefit for our industry and communities alike.

The unique feature of this plan is that all the industry stakeholders have contributed and agreed with the content. By working together and taking a holistic approach a blueprint for our future has been created. We will build innovative and profitable value supply chains through mutual trust and co-operation between all sectors of the Tasmanian Red Meat Industry. By implementing the strategies contained in the plan we are confident that the industry will become a billion dollar enterprise and provide a sustainable future for generations to come.

Brett Hall.

Chairman, Tasmanian Red Meat Industry Council (TRMIC)


Summary: The Tasmanian Red Meat Industry Strategic Plan (TRMISP) has identified three core areas for industry development across the red meat supply chain.

Secure a reliable and sustainable production base

Improved Market access and profitability

Effective information and communication resources

This document summarises the intent, the principles and processes of the strategy. The issues identified within the core themes that require industry action are illustrated.

The red meat industry is vital to Tasmania. The “Tasmanian Livestock Sector Score Card and Production Trends 2011 -12” published by the Department of Primary Industries Parks Water and Environment, indicates red meat from beef cattle and sheep had a combined farm gate value of $252.5 million, or a processed food value of $334.8 million.

Retaining and increasing this value in real terms requires action. This document articulates a strategy to achieve this for all who have an interest in the future of the red meat industry within Tasmania.

Our Vision:

Tasmania is the most sustainable and reliable supplier of the best quality Red Meat in the world.


Our Mission: Improving the long term profitability of all participants in the Tasmanian Red Meat sector, enhancing reinvestment and sustainability.

Purpose: The strategy identifies one central need, the requirement for informed, aligned behaviour change. -This means:

Participants each need to have clear and unbiased information, enabling them to make informed decisions at the right time, with risks understood, to improve certainty of outcomes.

Everyone involved in the industry – farmers, agents, processors and others – need to understand and become closely involved in their value chain partners’ strategies to enhance value and reduce risk from competing objectives.

Doing things differently and supporting others to also seek improvement from increasing their efficiency and being innovative.

The red meat strategy has determined where change is required to ensure a viable, prosperous industry.


Context: Staying as we are has risks. Risks associated with a loss of economic worth and industry profile, loss of investment, loss of critical mass and viability and lost opportunity to realise new value. In fact history tells us that “nothing endures but change” (Heraclitus, 540-480 BC).

Challenges for land use from other enterprises are ever present. A strong, profitable industry sector however is able compete against such competition.

There are also many opportunities. Demand for safe, ethically produced, high quality, branded grass-fed product, increased global demand for protein and increased disposable incomes paint a very positive outlook. The irrigation expansion across the state is an exciting development that will allow producers to supply prime livestock year round. Livestock production and cropping have a unique synergy. Sustainable cropping operations require pasture phases to increase soil organic matter and allow carbon sequestration.

Tasmania is one of the few regions in the world with a positive agricultural outlook from the impacts of ‘Climate Change’. Although the climate will be more variable and higher average temperatures experienced, the state’s pasture yields from both dryland and irrigated operations are forecast to increase considerably. By 2085, annual dryland pasture production from ryegrass is projected to increase by 10%-100% depending on the region. Irrigated ryegrass annual yields are expected to increase between 20%-30% by 2040. (ACE CRC 2010) Farmers will need to utilise best management practices such as maximising groundcover, controlled grazing, introducing summer active and heat tolerant pasture species to mitigate the impacts from climate variation.

Tasmania is well placed to capitalise on many such opportunities. Natural advantages of temperate climate, access to water and a wonderful production environment provide a strong industry foundation. Our island geography and reputation for food quality in combination with Australian food safety and traceability systems provides for distinction in branding and quality product definition.


Participants: One clear objective of the strategy is to bring together red meat industry participants as individuals and groups, and develop mutual understanding and consideration as well as harness shared skill, knowledge and enthusiasm. A culture of cooperative and continuous improvement all along the red meat supply chain is one outcome that planning together, prioritising together and taking action together, can yield. This has already commenced.

Suppliers, processors, livestock agents, transport operators, advisors, policy makers, research and development agencies all working together with a common intent; creating a framework for the expansion of the red meat industry in Tasmania. The stakeholders involved in developing this strategy included:

Department of Primary Industries Parks Water and Environment; Livestock agents: Roberts and Elders; Livestock producers; Livestock Transporters AssociationMacquarie Franklin; Meat and Livestock Australia; Processors: Greenham Tasmania, JBS Australia and Tasmanian Quality Meats;Tasmanian Farmers and Graziers Association; Tasmanian Feedlot; and Tasmanian Institute of Agriculture.


Process: Three workshops were attended by representatives from across the industry to create a strategic frame work. These participants considered a wide range of industry scenarios; certainties, emerging issues, opportunities and threats. Core issues, objectives and actions were developed as priority areas for the entire meat supply chain. To further enhance the strategy it was then circulated publicly for comment and amended to reflect the feedback received.

Principles: The red meat industry plays a vital role in the lives of Tasmanians as people and communities who produce and consume red meat. This strategic plan aims to improve the sustainability of the Tasmanian livestock production system by encouraging innovation that will improve its economic viability but also focus on animal welfare, environmental impacts, and social issues.


The underlying principles of the strategic plan reflect the industry’s commitment to sustainable practices in key areas such as; environmental footprint (biodiversity, Greenhouse gases, energy, air, water and soil), worker care, animal welfare and food safety. These commitments are not only ethically appropriate, but they will benefit our industry and communities alike.

Principles:

1: Animal Health & Welfare.The top priority for all the stakeholders in the Tasmanian Red Meat Industry is to respect and manage our animals to ensure their health and welfare. There is a positive relationship between high quality health and welfare and animal performance.

2: Environment.Managing natural resources responsibly and encouraging biodiversity to enhance the health of the environment. Our farmers continued commitment to land stewardship and sustainability is essential to maintain our reputation for producing the best quality products available in the marketplace

3: Food Safety and Quality.Ensure the quality and safety of the food produced is of the highest standard to maintain the internationally recognised reputation for the Tasmanian brand being produced according to world’s best practice.

4: People and Community.Recognition that the people working in the industry are its greatest asset and that the collective contribution to local communities is essential for their ability to prosper.


5: Efficiency, Innovation and Viability.To remain competitive on the world stage, businesses need to increase their efficiency and innovation. All sectors of the value chain need to be profitable. There needs to be sufficient financial resources available to undertake all these principles.


Core Themes: The strategy identified three main themes with the greatest potential to sustainably increase the sector’s profits – securing our production base, improving market access and profitability, and effective information and communication resources – while putting other issues which are often discussed, freight infrastructure, production costs and prices, into perspective. The diagram below shows the interrelated nature of these three strategic themes and the associated drivers of value for the red meat industry.

The strategy is an umbrella framework where individual farmers and companies can collaborate to pursue strategies relevant to their specific business.

The strategy has identified that the most important thing is for the industry to work together. What is required to enable progress in the three key themes is informed, aligned behavioural change”.


Each theme is illustrated by objectives identified as being priorities.

Theme A: Secure a reliable and sustainable production base.

A1. Optimise on-farm productivity and profitability and resource use across the state.

A2. Develop chain based collaborative planning, problem solving and feedback mechanisms.

A3. Secure product supply year round by building alliances and joint ventures to achieve scale.

A4. Seek more efficient supply of livestock from producers to processors through saleyards, online auctions and direct procurement.

A5. Develop a range of business model options linked to supply chain cost/benefit modelling.

A6. Seek innovative research in feed base and critical production efficiencies.

A7. Develop Tasmanian production risk profiles to build awareness and understanding.

A8. Integration of biosecurity, animal welfare and quality assurance program requirements into commercial operations.


Tasmania is unable to compete in terms of large production scale. However, we can become more profitable by working together in value focussed supply chains.

By cooperating instead of competing, an efficient supply chain can allow processors to invest more in developing products and provide consistent quality and volume to customers. New markets can mean new options for selling component products and securing the best value from the animal as a whole.

The procurement process needs to support this. Farmers, livestock agents and processors need to work together to produce animals to meet required market specifications and achieve a smooth flow of livestock from producers to processors and the market. Research to overcome critical production limits, increase efficiency and understand production risk and reward complements this supply objective.


Theme B: Improved market access and profitability.

B1. Encourage transparent performance measures, understanding, innovation and trust across the supply chain (e.g. data sources, cost of production, benchmarking).

B2. Input into and support for state approaches to biosecurity.

B3 Improving market access with continuing support for issues such as maintaining the ban on the use of HGP’s and GMO’s which act as a product point of difference.

B4. Maintenance of livestock identification, branding compliance and traceability systems.

B5. Develop efficiencies and drive support for infrastructure improvement (e.g. TFES, island freight, transport and truck wash down facilities).

B6 Maintain the current high standard of animal health and welfare.

We need to understand our markets and supply what they demand. There are big changes in economic power, ageing populations, health conscious consumers, the global scale of retailers, and an emerging worldwide, wealthy middle class. We need to keep investing in science and technology, on-farm and off-farm, to make the most of Tasmanian farming conditions and to capitalise on the benefits that can come from Tasmania’s ‘clean green’ reputation and the systems that support brand integrity.


Theme C. Effective information and communication.

C1. Gather research on consumer purchasing motivations – sociological modelling.

C2. Maintain the industry’s social licence to operate, enhancing the reputation of the meat industry.

C3. Maintain key points of difference and create a strong brand position in premium markets.

C4. Education and extension services to meet the needs of supply chain participants.

C5 Focus on improving business skills, including risk management.

C6. Increase transparency of industry market intelligence and consumer value attributes.

C7. Industry support for the gathering and administration of industry levies to provide sufficient financial resources for advocacy purposes.


We need to understand our customers: what they need, what motivates them, and how we appeal to them. We can then create products with points of difference and seek premium prices. Keys to success include: committed profitable producers, transparent pricing for suppliers, robust industry and market information, commitment to quality, provenance and strong brand stories, resources that provide appropriate industry information and promote strong communication to the public and stakeholders.

The Future: The next step in the process is the development of an operational plan that sets achievable targets and timelines to make sure the strategies become reality.

The monitoring and review of the strategic plan will be ongoing, with all industry stakeholders joining together to form the Tasmanian Red Meat Industry Council (TRMIC). This Council has the responsibility to ensure that the strategic plan is implemented and represent the industry with a single united voice. We need to continue to focus on working with one another to ‘grow the size of the pie’. Only through shared responsibility can the strategy be applied and the vision and mission realised

“Coming together is a beginning; keeping together is progress; working together is success.” Henry Ford


For further information and to have input into the ongoing development of this strategic plan, please contact:

Peter Ball TIA 0418 375 994 or [email protected]

TFGA (03) 6332 1800 or [email protected]

Brett Hall TRMIC Chairman (03) 6224 6973

Hard copies of the plan are available from the TFGA Launceston office and electronic copies are available from the TFGA website www.tfga.com.au

Photography by Simon de Salis. Additional photography by Rick Eaves (pg4 photo 3, pg13),and Brett Hall ( pg 3, pg 9 photo 2, pg 11, 14 and 16), with our considerable thanks.


http://www.tfga.com.au/

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