Evaluation of Goatmeat Strategy and Recommendations on Collection of Industry Economic Data

Summary

Benefit cost analyses were prepared for six Australian Goat Industry RD&E strategies (see Table E1). Each strategy works toward delivery of the Plan's mission. Investment returns are driven by increases in the volume and reliability of Australian goat meat supply, consequent market development and the time elapsed before benefits are realised. Data to inform the analysis was sourced from the literature and key industry players. A list of priorities for industry data collection is included in the body of the report.  
Data collection priorities address the Australian goat population, industry turnoff, on-farm production, the supply chain, the profile of goat producers and human capacity. Table E1 summarises benefit cost analysis results for core assumptions along with results for a sensitivity test on changes in goatmeat supply (pessimistic scenario). Only Net Present Value (NPV) and Benefit Cost Ratio (BCR) results are provided in the summary table. The body of the report includes estimates for other investment criteria and the impact of investment on the triple bottom line. 
 Best available data (core scenario) would indicate a total NPV of $2.3 million over 30 years and a balanced portfolio of investments with acceptable positive NPVs across all six of the strategies evaluated. The average BCR across the same set of investments and using the same set of assumptions is 2.7 i.e. for every dollar invested through the Goatmeat Industry RD&E Strategy 2012 $2.70 will be returned to industry and other stakeholders. Positive environmental and social outcomes are associated with Grazing systems; Animal Health and Welfare; Capacity building and Communications. The sensitivity test (pessimistic scenario) shows that even with a 20% reduction in the increase in goatmeat supply at profitable prices attributable to the Plan, a positive NPV and BCR will be delivered.