MLA Strategic Plan 2025: Creating opportunities
06 March 2020
In last week’s article, MLA Strategic Plan 2025: Connections are key , we explored two of four key areas that will help inform MLA’s future investments and next Strategic Plan.
Guided by the principle of ‘fewer, bigger, bolder’, the four key areas identified through our strategic planning process are:
- Understanding and connecting data and insights across the supply chain to identify opportunities and challenges…
- which will enable us to address the big, complex problems impacting on our industry.
- Turning these big, complex problems into opportunities that generate revenue.
- Developing new, high value products that allow us to maximise every aspect of the carcase.
These key areas will inform our future investments within each of the six Red Meat 2030 Priorities (refer to ‘More information below’), as well as help MLA contribute to the industry goal of doubling the value of Australian red meat sales as the trusted source of the highest quality protein.
In this article, we will explore the remaining two areas:
Turning these big, complex problems into opportunities that generate revenue.
Previous articles have highlighted new and different challenges that the industry will face over the next decade – including issues such as climate variability and natural resource management, as well as the need to continue to meet the high expectations of our customers, consumers and the community around livestock and the environment.
The big question is how can we take these complex issues and turn them into new revenue opportunities for our producers and our industry as a whole?
We know that the red meat industry plays a vital role in the stewardship and management of Australia’s land and environment. Given it presides over more than 50% of Australia’s land mass, we are ideally positioned to provide environmental and ecosystem services alongside red meat production – around such things as biodiversity, carbon sequestration, water, soil and waste management.
On- and off-farm practices that customers, consumers and the community perceive as beneficial to the environment, which are supported by trusted systems and standards, offer an opportunity to capture additional revenue via unique value proposition for Australian red meat.
Waste management is a significant cost for our industry. Current work with cross-sectoral partners has identified a potential $100 million per year opportunity to unlock new revenue for the livestock industry by converting production waste into valuable products.
Diversifying into new business models and developing methods to reward the supply chain for good environmental stewardship would also contribute to greater economic and environmental resilience for our industry.
Developing new, high value products that allow us to maximise every aspect of the carcase.
Changes in consumer behaviour and lifestyle choices are affecting how, when and why we eat certain foods. Current and emerging global trends around convenience, snacking, personalised nutrition and wellness offer new usages and occasions for red meat beyond the traditional centre of plate protein.
In addition, other industries that have potential to deliver high premiums for red meat by-products and co-products include, amongst others, the pharmaceutical, cosmetic, medical and biofuels sectors.
We want to ensure that the Australian red meat industry is best placed to target these opportunities.
To do this, we need to understand the carcase also from the perspective of how its components could be utilised as ingredients in food and other products.
This would enable us to develop new business models and supply chains focused on where we can command the highest possible premium for each part of the carcase – whether that be through cut, value-added food product or co-product.
Focusing on high value product opportunities and generating new revenue would help us build a sustainable, more profitable and resilient red meat industry.
Have your say
Over the next few weeks MLA is sharing what we believe will be the focus areas within our next Strategic Plan and are seeking your thoughts on these.
We would like to know:
Where do you see opportunities to generate new revenue and/or additional value for the red meat industry?
Have your say by emailing your response to email@example.com