Review of APM/MLA Collaborative Innovation Strategies Program Stage 1

Summary

The MLA Donor Company's (MDC) Co-Innovation Program aims to strengthen the innovation capability of businesses across the Australian red meat value chain.

In July 2016, Argyle Prestige Meats (APM), a vertically integrated beef and lamb business, commenced a three-year program with MDC to develop and implement an innovation plan aligned with the company's future business goals and MLA's Strategic Plan.

The collaboration resulted in the development of a range of innovative products, packaging, processes and value chain concepts that extend from the paddock to the plate.

Objectives

The primary objective of this project was to further develop APM's innovation culture to drive high value growth strategies in both the domestic and global markets.

Key findings

Under its innovation plan, APM undertook a range of projects across the following key areas:

• Innovation resource planning and people management – APM introduced and implemented a 'PeopleGoal' tool – a digital management tool that helps supervisors assess team performance.
• Operational excellence – example activities in this area included the installation of an automated mincing line, label applicator, new portion cutter and small footprint skin pack machine, which resulted in more than 10% labour efficiency gains.
• Environmental sustainability – example activities included a solar energy trial which reduced 10% of the company's electricity costs at its value-adding facility.
• Marketing, market access and value adding – new product and market development activities increased 25%.

Benefits to industry

Approximately 25% of the total benefits produced by APM during this project were generated by incremental innovation (products and service), which added further value to the Australian red meat industry and its supply chain, such as farms, feedlot, slaughter house, distributors and logistic companies.

Innovations that resulted from the project can be replicated in other businesses and add further value to the Australian red meat industry and its supply chain. The outcome and findings obtained from this project will benefit exporters, processors and producers who are looking to capture a share of the value adding strategies.

MLA action

MLA has generated various information products, including research reports and case studies arising from the partnership with APM (see below in 'Related resources').

Future research

Argyle Prestige Meats recognises the need to build its capability and capacity (technically and commercially) to be able to supply Australia beef to the world markets. This will continue to create opportunities for the Australian red meat industry.