Addressing supply of pasture fed beef within a premium Coles branded product

Summary

When Coles introduced their ‘Graze’ branded Grass fed beef range across the eastern states in 2015 they were faced with a number of challenges. One of the major issues to be overcome was continuity of supply of a reliable compliant product every week of the year. Verification of product, consistency of product and sustainable profitable production systems all impact on the ongoing success of this premium branded beef. To ensure the integrity of the brand, Coles underpinned the Grass fed range with an on farm auditable program that ensures every animal has life time traceability and meets industry and Coles Grass fed standards.

A supplier engagement process was undertaken by Coles to provide the confidence and support suppliers would require to meet the Grass fed supply objectives. There was very little contemporary evidence of quality assured Grass fed beef schemes demonstrating their sustained productivity and profitability. To assist in overcoming the challenges of supply and ensuring producers were skilled in the requirements of the auditable system, Coles collaborated with Agriculture Victoria to provide supplier training, case studies and extension resources to improve capability and verification processes across their supplier network.

Five supplier training days were delivered across Victoria and NSW, focusing on specific standards within the Coles Grass fed program. The training focused on competent use of the National Livestock identification System (NLIS) database for tracking life time traceability, as well as gaining an improved understanding of Meat Standards Australia Australia (MSA) grading and the resultant impact on eating quality. Producers were trained in accessing the NLIS database, understanding the importance of maintaining and reconciling the animal movements on and off the database and being competent in retaining the integrity of the life time traceable status of each grass fed animal.

The MSA training focused on improving producers understanding of pre slaughter management of cattle and the influence this has on eating quality. Coles do not have MSA ungrades as a part of their grid structure/discounts, thus their supply base was lacking in understanding of MSA and how dark cutting in particular affects Coles ability to efficiently utilise those carcases. Implementing procedures on farm to minimise the risk of ungrades provides improved outcomes for Coles as well as the suppliers, ensuring best practise management of cattle into the ‘Graze’ program. Forty nine suppliers attended the training days in total, which at that time represented about 20% of the ‘Graze’ supply base.

The evaluations and improvement in skills and knowledge from each of the training days showed suppliers valued the learning as well as the interaction with Coles Procurement and other representatives during the day. The training days highlighted the importance of Coles interacting with suppliers on a personal level and making a commitment to transparency and open communication.

Case studies were completed with Cole’s suppliers demonstrating production systems that would allow finishing of cattle to meet market specifications out of season. Eligible supplements and forage crops were investigated and analysed for their ability to produce suitable cattle and maintain profitability with a higher cost of production. Key messages observed from the case studies include the importance of selecting the right type of cattle to finish into the ‘Graze’ program, particularly where cattle are bought in and are fed an eligible supplement. Knowing the cost to feed and produce cattle, along with an established margin when consigned, ensures a price incentive exists in the transaction. Close relationships formed between the end market and the supplier through a value chain approach allows for shared decision making, confidence building and sustainability of supply through all seasons.

The electronic National Vendor Declaration (eNVD) proof of concept trial provided Coles with the knowledge they required to confidently progress a permanent eNVD across their supplier network. The two week trial utilised a purpose built ‘App’ to demonstrate how an eNVD system could operate whilst processors upgraded their in house technology to receive eNVD's from suppliers. While there were issues for a small number of producers one week with connectivity, the general feedback was very positive and encouraging from all segments of the supply chain. Coles have since commenced scoping out a permanent solution to using eNVD’s throughout their supply base, starting with feedlot suppliers.