W.CFP.2205 - Vietnam Market and Product Development Summary

Summary

Traditional processing in Vietnam relies on fresh meat sales through wet markets. Australian cattle when price competitive out-compete local or regional cattle.

Record high cattle prices from Australia, regional supply/demand dynamics and local border trade restrictions led to a perfect storm reducing the value of exports from $418 million in 2020/21 to $168.5 million last year.

Moving out of traditional markets for a proportion of production is key to the competitiveness of the Australian trade. This project focused on improving meat quality, leading to a 65% increase in throughput with an influential processor in Vietnam.

Objectives

• Improve the capability of staff at an influential processor in Vietnam.
• Increase throughput at an influential processor in Vietnam by at least 10%.
• Recommend process improvements to the influential processor in Vietnam to improve meat quality, competitiveness, product range, profitability.

Key findings

• Increase in throughput of 65%.
• Increased the gross profit per animal by 4.75%.
• Provided an awareness of meat quality and techniques to improve opening opportunities to distribute to MT and HORECA.

Benefits to industry

• Improved profitability and throughput driving an increase in volumes from Australia to Vietnam.
• Improved eating quality improving the reputation of Australian locally processed cattle.
• Improved relationship with large Vietnamese processor.

MLA action

MLA will use this as a case study to provide to other importer and processors in Vietnam to encourage them to look at producing a more premium locally slaughtered product.

Future research

• With an increased eating quality product comes the opportunity to expand and grow MT and HORECA.
• MLA to work with the major processor on a consumer insights project to inform their sales growth strategy.