Integrity System 2025 Strategy Ex Ante Impact Assessment Final Report

Summary

This project conducted an ex ante impact assessment of the Integrity System 2025 Strategic Plan. It was established to estimate the value of the benefits that are likely to be realised by the red meat industry through the delivery of the Integrity System 2025 Strategy and outline where these benefits will accrue across the various investment areas captured within the strategy.

The project was also designed to capture any enhancements to the MLA Return on Investment models to capture the benefits associated with the Integrity System 2025 Strategy through future MLA impact assessments.

Objectives

1. Conduct an ex ante impact assessment of the Integrity System 2025 Strategy to demonstrate the value of investment in the activities outlined within the Strategy.
2. Consider economic impacts in line with MLA ROI modelling utilizing the Global Meat Industry/Integrated Framework economic models
3. Conduct consultation with key industry stakeholders to support the economic analysis and to develop and test the assumptions that will underpin the analysis.

Key findings

The results suggest that (in present dollars) IS2025 will return benefits of $1,370m from an investment of $156m, or $8.8 for every $1 invested. The additional $48m investment in IS2025 over and above the Business as Usual (BAU) baseline, is expected to return marginal benefits of $533m, or $11.1 for every additional $1 invested. Projected improvements to livestock traceability levels were identified to be the major driver of benefits for IS2025.

The findings suggest the IS2025 will deliver considerable benefits to the red meat sector, through increased protection from exotic diseases and contamination risks, as well as maintaining market price premiums in export markets. The ongoing automation of NVD and LPA data collection are also expected to reduce compliance costs and unlock opportunities for data based improvements to value chain productivity.

Benefits to industry

The findings within this report suggest that IS2025 will deliver considerable benefits to the red-meat sector, through increased protection from exotic diseases and contamination risks, as well as maintaining price premiums in export markets. The progressive automation of NVD and LPA data collection are also expected to reduce compliance costs and unlock opportunities for data based improvements to value chain productivity.

MLA action

ISC's continued investment in the red meat integrity system programs in line with the Integrity System 2025 Strategy will ensure that the impacts assessed through this research can be achieved.

Future research

Further assessments of the impact of the IS2025 strategy will be undertaken as a part of MLA's on-going evaluation process.