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Development of supply chain objective measurement (OM) strategy & value proposition to stakeholders

​The red meat industry does not currently have all the measurement technologies and systems available and adopted that might assist to optimise red meat value within the supply chain. However, advances in objective measurement on the live animal, carcase or cuts have the potential to assist the red meat industry by improving efficiency and underpinning a new value-based transaction model.

All sectors of industry recognise that value is being lost through inaccurate measurement or appraisal systems and that this could be improved by addressing the current objective measurement related limitations. There is also recognition across the industry of the need for change.

MLA commissioned independent consultants to model the potential benefits of OM and related business model changes throughout the red meat supply chain.  This project was funded from MLA producer levies and AMPC processor levies, with matching funds from the Commonwealth.  

Deliverables included a detailed Excel model which allows on-going modelling of alternative scenarios and adoption assumptions, as well as an executive summary and detailed report on the most likely scenarios and benefits as at 2020 and 2030.

This report estimates that over $420 million of potential gross benefit per annum exists from the further adoption of objective measurements and associated pricing signals by 2030. Less than $75 million of this is likely to be realised by 2020 while around $250 million could be realised by 2030. The difference between potential benefit and likely benefit is the gap between opportunity and adoption.

These benefits were estimated to be split equally between producer and off-farm sectors of the supply chain over time in most of the scenarios modelled.

The executive summary and the more detailed report are available below.

Meat & Livestock Australia acknowledges the matching funds provided by the Australian Government and contributions from the Australian Meat Processor Corporation to support the research and development detailed in this publication.



Contract No. Title Start date End date Funding type
Development of supply chain objective measurement (OM) strategy & value proposition to stakeholders
07/12/2015 13/11/2017

This page was last updated on 05/07/2018

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