Beauty Food snacks with inclusion of Australian red meat - product and market development (Chief Nutrition)

Summary

Previous projects have set out to analyse technical aspects of collagen production in Australia. The results of this research will be used to generate the traction required to establish an Australian bovine collagen market, and the development of further innovative, value-added red meat products.

We are using the products we have developed as part of this project to create the initial market demand required to get the bovine collagen industry off the ground. We anticipate that once Australian bovine collagen is available, growth into new markets and products will be rapid.

Objectives

The main objectives of this project were to:

Evaluate Australian sourced bovine collagen protein sources against international suppliers.

Develop proof of concept bovine collagen and other innovative red meat-based snacks and test in-market. This included assessing the value proposition for Australian sourced bovine collagen and beef snacks domestically and internationally.

Provide an overview of the available market, target usages and occasions and users.

Key findings

Assuming an average hide weight of 20kg and a 20% yield of collagen powder per hide, 10,000 head of cattle will produce 40,000kg of bovine collagen valued at AU$17/kg wholesale, AU$60/kg retail, and over AU$100/kg if sold as part of a valued added product.

Assuming an average weight of 350kg, 10,000 head of cattle will produce 350,000kg of topside and brisket valued at over AU$70/kg when sold as part of a valued added product.

Completed testing of our minimum viable products, including bovine collagen protein bars and dried beef bars, and have successfully launched these products in-market.

Established a commercially viable market for Australian sourced bovine collagen protein and other innovative meat snacks in Asia Pacific (particularly in China) and the Middle East where consumers are attracted to “clean and green” Australian sourced products. We are now selling our products in the Middle East and are in discussions with distributors in China and Japan.

While Australian sourced is less appealing to consumers in North America, we have determined there is high demand for “Regeneratively Farmed” bovine collagen and meat snacks which represents an opportunity for Australian farmers following regenerative practices, and manufacturers utilising regeneratively farmed products.

Identified an Australian based manufacturer capable of processing Australian bovine products into high quality bovine collagen powder that can and will be used in our products.

Benefits to industry

Assuming an average hide weight of 20kg and an average price of $20, the price of raw bovine hide is around $1/kg. If sold as part of a value added bovine collagen product for over $100/kg, this would result in a value multiplier of over 100x the raw material price.

The price of raw beef (processed) is around $11/kg. If sold as part of a value added beef product for over $70/kg, this would result in a value multiplier of almost 7x the raw material price.

The development of an Australian bovine collagen product / industry, and meat based snacks, could create additional and viable red meat supply chains for Australian red meat processors.

MLA action

MLA will publish the final report on the MLA website and continue to further engage with industry to continue to investigate the bovine collagen opportunities associated with the Australian red meat industry.

Future research

Further research and development of the bovine collagen market should be conducted so that industry is able to understand, and validate, the additional value add opportunities associated with bovine collagen processing/production methods and associated market differentiators for the Australian red meat industry. For example, most bovine collagen is processed using harsh chemicals, therefore there may be opportunities to use other technologies such as freeze drying which may be a differentiator. Testing and analysis of the final products compared to other collagen sources will be required.

Additional research should also be conducted into Regenerative Farming so the industry is able to understand, and validate, the additional value add opportunities and increasing pricing opportunities associated with regeneratively farmed beef in the global market.