Creating a new vision for the beef industry 2018 and beyond
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1 Creating a new vision for the beef industry 2018 and beyond Dr Michael Bradfield AgriBSA
2 Genomic testing: Genestar & Merial
3 Roger Hunsley (USA Cattleman s Association hall of fame) 5-6 Weaners Don Nicol (Breedlink) 5-6 Weaners South Africa: 8-9 Weaners for a R bull
4 Comparative price for cattle (Carcasses) in 6 countries Product USA Australia RSA India Pakistan China Beef R67.05 R67.26 R38.80 R30.04 R38.08 R80.50
5 Worlds Largest Beef producers and exporters
6 Delgado s claim Production needs to double by 2050 to meet demand. Claim contested and to a certain extend only true if we include China and Asia
7 Points to consider for a future vision Export high value cuts Beef export council Animal health Traceability Black Economic Empowerment Voluntary Grading system Research and developments Funding models
8 1) Export high value cuts to high value markets Repercussions of last year s drought Protects against currency depreciation Meat has an international price Commodity High value
9 Namibian and Botswana Namibia: Weaner price would be 30% lower were it not for exports (Schneider) examples Botswana: 80% of our income in beef derived from 20% of exports (Morakaladi)
10 The USA Example Greg Bloom Exports: Why they matter so much to agriculture? Exporting beef has added $277 (R3800) of value to each carcass For all meat exports, finding international markets that are willing to pay more for certain cuts is critical About 10% of product is exported
11 Collectively market product Team South Africa approach critical Takes everyone to work together to open markets Serious role players versus small fragmented
12 2) Improved Animal Health Reality regarding the country s health status is critical Need a collective action to address Brucellosis for example, Disease monitoring challenges Fear of F&M Animal health (e.g. brucellosis) is the biggest threat facing our red meat industry
13 Improved Animal Health Critical to all issues is funding model and for industry to take ownership Tie in with animal identification/traceablity (South Sudan)
14 3) Identification and Traceability Reality is that South Africa is lagging behind rest of Africa IGAD already has umbrella body Ethiopia currently tagging cattle destined for export Sudan/Kenya trialing pilot projects Branding considered too difficult and expensive
15
16 Requirements for a system (Britt and Pasken OIE) An authority A database Means of identifying animals Creating the necessary documents Required legal framework Educates industry participant s Monitoring, enforcement and evaluation procedures Query system
17 Changing perceptions.
18 4) Black Economic Cannot simply wait for things to happen Government IS willing to work with producers Industry is often to fast for them Example of Beef Genomics Project Empowerment
19 5) Classification and/or a Grading System Aldam Stockmansschool (Vision 2020 and beyond, consumer requirements)
20 Retail sector Keep it cheap Price price price and reasonable quality Don t allow retail sector force meat to become a commodity and not a product that is of high value
21
22 Beef consumption decline in USA and Australia A survey of American and Australian consumers showed the performance of the beef industry was unsatisfactory Per capita (kg)
23 MSA Survey results Survey results in early 1990 s indicated: 38% - difficulty buying beef to the quality they desire. 57% - difficulty predicting tenderness of raw beef product. 81% believed price was a poor indicator of beef quality. More than 90% perceived fat to equal poor quality. BUT all would buy more beef and pay more for it if satisfaction could be guaranteed.
24 Consumer taste tests The MSA program is based on over 100,000 consumer taste tests and almost 700,000 samples. 8 cooking methods tested Consumer testing has been carried out in 8 countries Largest consumer product testing program in the world
25 Consumer Taste Tests Attribute Beef Tenderness 30% Juiciness 10% Flavour 30% Overall liking 30%
26 Consumers identified grades Fail
27 Consumer taste tests in South Africa 720 South African consumers RSA and Australian meat Grill and slow cook RSA samples matched with Aust consumers
28 Consumer taste tests in South Africa Subtle differences between rural and urban consumers in RSA And little difference between RSA and Australian consumers Supports a system that describes quality based on sensory scores Willingness to pay data gave clear indication that consumers were willing to pay for higher quality beef
29 Return on Eating Quality Investment 5 years MLA Eating Quality Program - MSA Increased numbers of cattle graded to over 1/3 of adult cattle slaughter to 3.22 million head graded and lamb to 7 million hd Increased processor and end user adoption to 54 processors Increased premiums paid to producers Improved consumer satisfaction with eating quality of red meat
30 Influencing beef eating quality
31 6) Research and development (R&D) International norm is about 1.5% of turnover USA- beef checkoff system (About $5 per transaction) Challenge for developing countries Is a mindset Australia MSA (About $5 per transaction) Beef CRC $150 million into genomics $65 million is the new investment Success of Beef genomics program (BGP) R30 million from TIA R120 million from industry
32 Variation within a breed-for what do we select?
33 A tale of two bulls Same herd. 565kg. 400d vs kg. 400d 7.7 vs. 19 kg. of dry matter / day Converted 4 to 1 vs 10 to 1 40% heritable Which bull s daughter do you want?
34 Moving the mean is possible! Converted 3.2 to 1!
35
36 Big picture scenario Take ownership of our industry Animal health Traceability BEE Export Product development (meat grading) R&D How are we going to fund these actions? Worlds best practice? What are other industries doing Bang for our buck
37
38
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