W.VPG.2501 - Philippines Product Development

Summary

To support the growth and diversification of a Filipino importer of Australian cattle, a three-month technical consultancy delivered transformational change, accelerating business and culture. 

The importer has been trying to change their value proposition from price driven to value driven. However, inconsistencies in quality, frozen competition and traditional processing systems were hampering development. 

The program delivered training on best practice processing, instituted data driven-decision making, improved efficiencies and revitalised the business. 

The business has moved from the chilled processing of seven to 30 head of Australian cattle per night and the importer has forecast their importation numbers will be 54% higher year-on-year.

Objectives

1. Conduct a review of RSRH’s QA systems, cutting lines and business model providing solutions and recommendations to improve operations.  
2. Conduct a feasibility study for primal variances in cutting lines, chilled tender stretched carcases in meeting existing commercial arrangements/expectation of their customers.
3. Assess meat quality and inhibitors to improved meat quality and provide solutions and recommendations.
4. Based on reviews and recommendations, conduct boning room training, assessing the participants as competent to complete the required changes to process.  
5. Increase the throughput of the abattoir by a minimum of 10%.

Key findings

Through training, process monitoring, establishment of guidelines and procedures and revised flows, boning room processing times per quarter were halved, reducing the number of staff required and resulting in a 67% decrease in labour cost and an ability to increase throughput.

The importer instituted changes to also increase eating quality of the products, such as a review of feedlot exit procedures (such as mixing cattle causing undue stress), instituting pH monitoring of carcases, tender stretching carcases, increasing chilled boning, vacuum packaging product & ageing in line with eating quality science. As a result the importer increased the production of chilled product from 7 head to 30 head per night.

Benefits to industry

The importer the LEP partnered with saw an increase in profitability and therefore enhanced their throughput. This resulted in industry being able to export more cattle to the Philippines in 2025 and provided the importer with greater access to diverse sales channels.

MLA action

The LEP will replicate this work across other live cattle markets with willing and able partners, such as in Vietnam, Brunei and Indonesia.

Future research

The LEP will replicate this work across other live cattle markets with willing and able partners, such as in Vietnam, Brunei and Indonesia. Further support can be provided to the Philippines where opportunity for growth is identified.