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1 Michelle Edge (AMPC CEO)

2 About AMPC: A national RD & E Corporation that represents red meat processing plants throughout Australia. VISION A sustainable, profitable and competitive red meat processing industry that meets national and international customer, consumer and community expectations. AMPC s mission: To maximise the efficiency, viability and sustainability of the red meat processing sector by supporting the development of sound, scientific solutions that will: Improve the long term efficiency and competitiveness of the industry; Enhance the sustainability of the industry; Assist to protect, secure and maintain market access; Enhance capability and; Enhance overall productivity and performance of the meat processing sector.

3 AMPC collaborates with Meat and Livestock Australia to seek matching funding from Government Click to edit Master MISP title / RMAC style Peak councils Joint and Sector Strategy Lobbying, Policy ALFA Cattle Council Sheepmeats Council GICA AMIC ALEC Levy fund managers MLA (producer levies) AMPC (processor levies) LiveCorp (live export levies) Funds Receipt and Strategic Allocation MDC Service provider Drives Operational Performance and Delivery / Matching RD&E Providers (e.g. Universities, Consultants, Government Departments etc) OUTCOMES/ADOPTION

4 Partnerships Meat and Livestock Australia and AMPC partnership delivers: - Through the MLA Donor Company, funding from the Commonwealth for projects; - Projects on behalf of wider industry Australian Meat Industry Council - Advice on priorities, consultation processes MINTRAC - Advice on delivery, active delivery of research outcomes to industry

5 R&D Processor Levies Marketing Investment in RD&E activity PIP All program areas with a focus on facilitated adoption Core -Technology -Automation -Meat Science -Environment -Water/Energy Efficiency -Climate Change -Capability -Livestock and supply chain Joint -Market Access -Food Safety -Domestic Marketing

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7 Large members have the highest rate of PIP utilisation at 94% Medium members participation rate is 45% Small and Very small member participation rates are 41% and 69%* respectively Based on the data presented: AMPC is seeking to implement strategies to encourage medium-small members to undertake more PIPs.

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9 Members use the PIP program to address a wide variety of R&D needs across a diverse range of their business needs irrespective of the species slaughtered Sheep and lamb processors are spending nearly twice as much on automation as beef producers Conversely beef processor investment in non-automation processing efficiency improvements is nearly four times that of sheep and lamb producers Investment in capability building is non-species specific

10 Title: Automated CO2 Dedagging (A.TEC.0081) Summary: Update: Result: Evaluate automated beef de-dagging with CO2 Completed Is technically viable, no damage to hide, commercial viability depends on cost of daggy animals 10

11 Title: 3D X-Ray Developments (A.TEC.0080) Summary: Evaluate hardware requirements for cost effective OCM with CT Update: Completed Result: Significant number of meat processing attributes that can be measured, within the required processing time frame, with 3D x-ray helical hardware platforms 11

12 Title: Bandsaw Resistant Glove (A.OHS.0061 & 62) Summary: Develop industrial design concepts for cost effective glove Update: Completed Result: A number of interesting designs and approaches were developed for industry review 12

13 Title: Automated Ovine Shoulder Breakup (A.TEC.0086) Summary: Develop a machine to automate shoulder breakup Update: Key modules being tested and improved Result: Development work on schedule 13

14 Title: Spinal Cord Removal (A.TEC.0088) Summary: Develop a cost effective automated tool to remove the spinal cord material in beef Update: Result: Tool concept selected, moving to 3D sensing trials to track cord material Development work on schedule 14

15 Band Saw Alternatives Project to establish a working group that will: Identify simple solutions; Identify short, medium and long term options, ranging from guarding to the implementation of Blade stop; Design and engineer solutions (select few determined by the working group) Be chaired by BMC who will do a benchmarking exercise to establish options Develop a range of industry materials to promote the options determined by the group. ACTION: Nominations for the working group commencing in April 2012.

16 Bar Coding training materials Over the last 10 year the red meat industry has agreed to and adopted uniform bar-coding standards for carcase and carton product. Over 90% of export product and a majority of domestic products are compliant to the uniform bar-coding standards. This project is intended to ensure that training material includes uniform bar-coding standards information. This project will ensure the requirements of the Red Meat Supply Chain Committee meat industry bar coding documents are addressed.

17 Projects sustainability/environment/energy/water Dry cleaning of chillers / Tripe Wastewater Management / Steam sterilisation of viscera trays These projects are being progressed by AMPC and MLA, with industry support (processor) to develop approved alternatives to these processes and other potential on-plant water re-use options.

18 Verification practices at Saleyards This project will review the current practices employed to collect, interpret, report and verify NVD/NLIS data in saleyards (post-sale summaries) identify the issues, inconsistencies, gaps and risks to achieving effective verification that meets processor requirements; establish principles or guidelines that address the identified risks, gaps and issues; provide recommendations for integrating the principles/guidelines into current practices (processing and saleyard sectors) to enhance verification processes.

19 Industry Biosecurity standards This initiative will develop and implement practical and targeted biosecurity standards to underpin the requirements of the EADRA and the future prevention, mitigation and response that the meat processing industry may require if faced with a disease threat. These standards will provide a consolidated document that integrates information from AQIS meat notices, AusVetPlan, guidelines on best practice, legislation and relevant scientific literature. The result will include a consolidated document for easy integration of biosecurity requirements into Approved Arrangements/QA on plant and training.

20 Review and benchmark of industry capability/skills Work with MLA and AMPC to finalise a list of current capabilities required by enterprises and providers Develop an on-line audit tool or similar method to gather comprehensive capability data from processing companies, technology and R & D providers Analyse capability data received and develop a capability map showing the critical gaps

21 E-learning package (livestock traceability/nlis) To establish, utilising the State Government and MLA examples, a training program curriculum for processing establishments to be able to meet their NLIS for ongoing traceability implementation (all species); To establish a framework for the delivery of NLIS training across the meat processing sector, in collaboration with the various State jurisdictions; To develop documented standard operating procedures and guidelines to assist abattoir staff in meeting their NLIS requirements. To develop an e-commerce (CD-ROM) tool that can be utilised by meat processors for ongoing in-house training (train the trainer);

22 Coming soon: livestock handling Moving the animal forwards by the handler moving backwards through the shoulder balance point line Moving the animal right by moving left of the backbone centre line

23 Communications: Circulars on Projects

24 Industry specific funding programs can be found on AMPC s new website Feedback welcome!

25 Climate Change Strategy Resulted from the AMPC/AMIC workshop which identified: challenges facing industry with respect to the Carbon Pricing Mechanism costs/benefits to companies mitigation strategies to stay below the line policy approaches to Government research areas for the next 18 months

26 Carbon Pricing Mechanism (CPM) The CPM will be implemented from 1 July The scheme will cover facilities that have direct emissions of 25,000 tonnes of CO2 equivalent p.a. It is anticipated that 10 processing facilities will face direct liabilities under the CPM. The scheme will take account of Scope 1 emissions as they are reporting under NGERS. Starting price for CO2 permits of $23 per tonne, fixed until 2015, when the CPM will transition into a full emissions trading scheme with a floating permit price.

27 Impact of CPM Economic Impact Assessment undertaken to determine: Base economic data on the Industry to compare with Government figures Direct costs to permit liable plants Indirect costs to industry Cost/benefit of abatement options

28 What s next? Rollout of Climate Change Strategy Launch of Climate Change Tools & Resources page NGERS calculator Available clean energy funding Funding guidelines and application templates Example submissions An grant officer to assist processors like the PIP program (AMPC) Further Economic Impact Modelling of the CPM Cost/Benefit analysis of CALs and Anaerobic Lagoons Tutorials covering all abatement options live sessions Includes CALs, Biodigestors, Cogeneration etc to be made available by mid year.

29 Grants and PIPs The Clean Energy Future Plan (available at contains around $27 bill over 7 years for clean tech initiatives. Around half of this will be accessible by the Red Meat Processing Industry in the form of competitive grants and finance vehicles such as loans or leases. AMPC have been reviewing the various funding programs and consulting with Government to improve Industry access to these funds.

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31 Thankyou Questions?