Red meat capturing a slice of value-add market

06 December 2018

Exploring value-add opportunities for Australian red meat in supermarkets beyond the fresh meat cabinet is delivering profitable new avenues for the industry.

Meat & Livestock Australia (MLA), through its CoMarketing Program and MLA Donor Company (MDC) High Value Food Frontiers Program, has helped companies seek out new usages and occasions for red meat and develop new product initiatives for supermarkets.

MLA Manager High Value Food Frontiers, Michael Lee, said there is scope for red meat to capture greater market share in the growing convenience segment, particularly supermarket delicatessens, which are dominated by pork and chicken value-added products.

“Australian beef has been taking a bite out of the lucrative barbecue chicken market since the launch of ‘grab-and-go’ traditional hot roast beef and corned beef products in Woolworths supermarkets in 2016,” Mr Lee said.

“This project was the result of a collaboration between MDC, Teys Australia and the Australian Meat Processor Corporation (AMPC). 

“The hot, ready-to-eat ‘Cedric Walter’ brand beef products have now been rolled out to 900 Woolworths stores nationally.

“Analysis of the Woolworths/Teys lines on the market has determined the annual use of 800 tonnes of lesser value outside flats lifts the value of 2.3 million head of cattle, delivering $5.5 million per year in new profit for the red meat industry, of which close to 20% is returned to producers and processor suppliers.

“Teys and Woolworths have since launched line extensions, at no cost to MLA or producers, including hot lamb roast and beef meat balls, also sold in the hot box delicatessen cabinet.”

Mr Lee said analysis of the performance of new, value-added red meat products demonstrated the many opportunities for the industry and the potential for growth.

“Research commissioned by MLA in 2016 showed the opportunity in the deli space is immense, with the red meat share sitting at 2%,” Mr Lee said.

“If red meat was to increase market share by just 1%, the benefit to the red meat industry in the domestic deli market alone would be approximately $10 million.”

MLA’s CoMarketing Program supports Australian red meat brand owners in the marketing of their brands both on the domestic and export markets. It helps brand owners develop and implement effective brand marketing strategies, business development activities and brand building activities.

MDC’s High Value Food Frontiers Program helps companies explore and develop innovative, value-added red meat products to drive higher premiums for, and increase consumer demand for Australian red meat and associated products.

The program achieves this through novel science and technology platforms and tools, increasing the value of lesser value cuts and carcase utilisation, insights for new red meat occasions and usages, and new value chain and business model design.

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