Improving Communication & Building Knowledge across the Beef Supply Chain

Transcription

1 Improving Communication & Building Knowledge across the Beef Supply Chain Graham Centre Beef Forum Jasmine Nixon Livestock Strategic Operations Teys Australia Wagga Wagga (02)

2 Teys Australia

3 Our industry is facing a number of strong challenges Commodity Cycle Costs of production Other Beef Exporters Other Proteins

4 Therefore Businesses & Industry must evolve to survive

5 How do we build a stronger supply chain?

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7 Carcase & Offal Inspection Export accredited plants; operate under the Australian Standard for Meat Production. All carcases & offal are inspected by independent 3 rd party meat inspectors, approved by AQIS. Observe high rates of various diseases and pathology.

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9 New Animal Health Feedback New information link back to producers Teys Animal Health Summary Reports Pathology observations made by trained independent 3 rd party meat inspectors, approved by AQIS. Recorded against each individual carcase All direct consignment cattle will be provided with a Teys Animal Health Summary Report. Includes a summary of the five major issues observed (if any) List of observations per individual animal

10 Top 5 major conditions Observations for each individual animal

11 Current Impact Liver-Fluke 20% of cattle Liver Abscess 8% of cattle Lung Pleurisy 5% of cattle What is this potentially costing your business on-farm?

12 Roll-out Teys Animal Health Feedback Reports Progressive roll-out across all Teys plants over next few months Developing information tools for producers Encourage producers to discuss their results with their Teys buyer & seek further advice from their local animal health professional

13 Feeder to Finished Steer

14 New Teys Feeder Cattle Benchmark Reports

15 New Feeder Cattle Individual Performance Reports

16 You can t manage what you can t measure Knowledge is power feedback is key Individual animal health data Will be available over next few months Feeder cattle performance data Now available to cattle sold to Teys Feedlots

17 Jasmine Nixon - Teys Australia (02) jasminen@teysaust.com.au

18 Key drivers of Carcase Value Sale value of meat QUALITY Weight of saleable product YIELD Current indicators weight & P8 fat Very poor indicators of true lean meat yield

19 Dual Energy X-ray Absorptiometry (DEXA) Using technology to provide a better indication of carcase yield DEXA

20 DEXA - what is it Measures the difference in two energy x-rays that passes through tissues; o bone, o fat, o lean (muscle) First developed in 1987 as a medical tool to estimate bone density and human body composition. In an animal carcase, the bone free lean mass is meat so provides a more accurate assessment of overall lean meat.

21 And it works CT Lean% CT Fat% R 2 =0.73, RMSE=3.49 R 2 =0.88, RMSE=3.21 CT Bone% R 2 =0.93, RMSE=0.81

22 LMY% LMY% Lean meat yield Improving accuracy Current Industry Practice - Carcase Weight - P8 Fat LMY% vs. Index Possible LMY Range Lean Meat Yield Equation Calculation developed by Murdoch University using: - Carcase Weight - P8 Fat & EMA LMY% vs. Index Possible LMY Range Estimated LMY Estimated LMY MSA Index MSA Index

23 LMY% Lean meat yield Improving accuracy DEXA Even better accuracy on lean meat yield LMY% vs. Index Possible LMY Range Measured LMY MSA Index

24 New Teys Carcase Feedback - yield and quality First Stage: Lean Meat Yield percentage (based on equation developed by Murdoch University) now provided on feedback for all over the hooks cattle sold to Teys

25 VBM Group yield and quality Lean Meat Yield % and MSA Index comparison provided on feedback report for all over the hooks cattle sold to Teys Will transition to new, more accurate technology as it becomes available e.g. DEXA

26 Progress Update Lean Meat Yield % now being provided to all Teys producers (based on Murdoch University calculation) DEXA trials completed with promising results Currently in process of building DEXA unit at Teys Rockhampton plant to allow commercial trials to commence in late Proposal to build next unit at Teys Wagga Wagga plant early 2018.

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28 The big picture: We must improve productivity all through the supply chain VBM is one opportunity Payment on the basis of actual weight of meat and quality Yield x Quality + Tiered Branding Weight (Yield) x Platinum = $ Weight (Yield) x Gold = $ Weight (Yield) x Silver = $ TRUE VALUE $

29 Analyzing data from supply chain and presenting Data Flow Diagram it in actionable form will be the key to success Reports Teys Data Matching and Analysis Producer AH Data Lean Meat Yield

30 The key is accurate and relevant feedback linking consumer value What is the true value of each animal? What is creating the value difference? How can I identify the good and the bad? How can I instigate continuous improvement? Clear price signals will drive dramatic change.

31 THIS IS THE FUTURE Knowledge is power accurate feedback relays value Value based payment stimulates action Producer action moves the curve A high value animal costs the same to breed, feed & process Additional revenue must be shared by participants Teys is committed to this path