P.PSH.1488 - White Paper: Key findings and recommendations

Summary

Red meat processing plants are unsure of the precise return on investment (ROI) benefits per carcase type when using Rinse & Chill® technology (RCT) from MPSC. Processors pay MPSC a fee per head, therefore processors apply RCT to the stock they own for example saleyard purchases, however, for over-the-hooks (OTH) purchases, processing plants often choose not to rinse as they pay a rinse fee to MPSC and pay the hot standard carcase weight (HSCW) gain from using RCT to producers. The purpose of this project was to calculate the financial implications for processors and for industry of using RCT® for lamb, mutton and beef cattle comparing OTH to processor owned animals.

Objectives

The project objectives were to:

1. Independently validate the financial implications of using Rinse & Chill® technology (RCT) for beef and sheep producers and processors for a range of carcase types.

2. Address the following barriers identified by Australian processing plants:
• return on investment (ROI) for use of RCT on OTH purchases
• ROI for use in own stock with sensitivity analysis on product prices including sale of offals.

3. Documentation of additional value propositions as a result of using RCT.

4. Scoping of trial methodology and design taking into account data points + rigour required to gain AUS-MEAT approved trim adjustment for use of RCT.

Key findings

Rinsing mutton carcases increased organ weights and hot carcase weight, generating an average supply‑chain benefit of $5.52 per head, with rinsed organs also showing significantly lower surface temperatures. Trials in cattle showed even larger gains, with dressing percentage increases of up to 3.58% and total benefits ranging from $61.06 for lighter stock to $166.44 for heavier animals. Across current Australian installations, the lost industry opportunity from not rinsing OTH livestock is estimated to exceed $10 million annually.

Benefits to industry

The research has quantified the value of RCT for two beef carcase types, identified additional value propositions and documented the proposed data points required for individual OTH carcase trim adjustment with further research and verification required.

MLA action

MLA will use these findings to continue to inform future research and investment decisions.

Future research

No, not by MLA.  Further research may be planned with AMPC.