V.MFS.0459 - Supply chain integrity desirability analysis
Making and proving provenance, environmental, or animal welfare claims could add value to your product.
| Project start date: | 30 November 2021 |
| Project end date: | 29 November 2022 |
| Publication date: | 02 April 2024 |
| Project status: | Completed |
| Livestock species: | Grain-fed Cattle, Grass-fed Cattle, Sheep, Goat, Lamb |
| Relevant regions: | National |
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Summary
The research for this project focuses on exploring the proposition that there is a middle market (between high-end retail and wet market) where consumers are still prepared to pay a slightly higher price for enhanced integrity. Enhanced integrity systems in this middle market may require filling gaps in transparency between exporters and retail. We hypothesise that such segments exist and would like to better understand the nature and behaviours of these mid-tier segments so as to determine how value may be added to Australian exports.
Objectives
The central aim of the project was initially to test the proposition that there are middle market segments in both domestic and export markets which would pay an additional amount over and above the commodity price of Australian red meat for enhanced integrity factors. This specific proposition was quickly dispelled and more applicable learnings emerged from the secondary aims of the project i.e. providing a deeper understanding of product integrity, how perceptions of integrity are evolving and how integrity factors can be applied by brand owners and the industry as a whole to extract incremental value in domestic and export markets.
Key findings
In defining product integrity, a distinction can be made between intrinsic integrity factors (i.e. those inherent to the product such as food safety, truth in labelling, etc.) and extrinsic integrity factors (which are largely value judgments about the provenance of the product and how it was produced). The research found that as the meat industry has transitioned into brand-based marketing, extrinsic integrity factors are growing in importance as they have become the basis for brand differentiation. However, Australia’s status as the most trusted supplier of red meat in key export markets (i.e. the ‘Brand Australia’ factor), is underpinned by leadership in the intrinsic safety factors, which have traditionally been the basis of enhancing the value of Australian red meat.
Benefits to industry
The benefit of this research to industry is an improved understanding of how intrinsic and extrinsic integrity factors differ but both contribute to Australia’s competitive advantage in red meat.
MLA action
1. A regular review of Australia’s product integrity platforms to ensure that the system remains fit-for-purpose and continues to underpin Australia’s competitive advantage in global markets.
2. Continuing discussions with industry and other stakeholders about the agrifood data exchange concept to ensure it reaches its full potential to increase efficiency and accuracy of integrity data management.
3. Considering how ESG (environment, social, governance) factors can be incorporated into industry systems and align with the ESG activities that are happening at a business level.
Future research
Continued strategic investment in pilot projects on emerging product integrity technologies and information forums to demonstrate how value may be gained for the industry.
More information
| Project manager: | Ian Jenson |
| Contact email: | reports@mla.com.au |
