FarmGate MSU - Mobile Processing Unit

Summary

FarmGate MSU has brought a “first to market” product to Australia and provides a new, disruptive and innovative alternative to the traditional supply chain of red meat to consumers. This has been achieved through the successful development of an on-farm mobile abattoir.

FarmGate MSU was developed with funding from the MLA Donor Company. As a start-up company this required FarmGate MSU Pty Ltd to go to market to raise capital through an equity scale to raise the matching 50% funding they required. The process of taking the company and founder group to market was a positive confirmation and validation of the fundamental concept and economic benefits which underpin FarmGate MSU’s business model.

The vertically integrated business model connects the farmer right through to the consumer and is specifically targeted at the increasing market of conscientious restaurateurs & consumers. validation via a lean start-up methodology. Three distinct customer groups were identified at either end of the value chain: end consumers (retail & wholesale) and the farmers themselves, each with different needs and motivations for engagement.   Through online and direct engagement surveys, FarmGate MSU received over 4000 respondents to the end consumer survey as well as over 30 farmer surveys. Overwhelming, both farmers and end-consumers put significant value on the welfare of animals, with 31% of respondents stating that this was the main reason for not eating red meat. Furthermore, 78% of survey respondents indicated they would pay a premium if high animal welfare and better taste was achieved across the entire supply chain of the red meat product.

This research set the launching pad for the enterprise. The project has captured the journey from market research and analysis right through to the build and commissioning trials of the unit itself. The business model underpinning this disruptive innovation is predicated on an “entry to market” phase, which necessarily involves the establishment of brand quality and loyalty. Following this initial phase, the model anticipates a period of rapid commercialization and a growth strategy which has FarmGate MSU cascading its operations nationally, and exploring international possibilities. This report summarized the ways in which FarmGate MSU will grow its new venture; plans for rapid commercialization; and ensures best practice while the company grows.