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V.RMH.0119-The future of red meat distribution could be about to change

Chilled supply chains could be replaced by ambient supply chain solutions that are easier to access, cheaper to serve, and deliver a powerful sustainability message with important energy savings.

Project start date: 15 September 2021
Project end date: 16 June 2021
Publication date: 25 January 2022
Project status: Completed
Livestock species: Grain-fed Cattle, Grass-fed Cattle, Sheep, Goat, Lamb
Relevant regions: National
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Summary

Since the early shipments of chilled red meat to European markets, the Australian meat industry has become both a major employer and a significant exporter of protein. Undoubtedly, a high proportion of the growth has been achievable through investment in strict
hygiene interventions, improved chill capabilities and packaging innovation. Understanding that maintaining rigorous temperature
control and minimising temperature fluctuations maximises product life has driven rigour and focus. Accessing and maintaining
these complex chilled supply chains is expensive, and whilst a cost that all exporting countries must absorb to serve high growth
markets, a change in the competitive landscape could be close. A first to market opportunity for early adopters or those involved
in commercialising the technology could establish a significant advantage through a reduction in the cost to serve valuable export
markets.
However, the supply chain as it is today could be about to change forever, as several exciting start-ups focus on the ability to distribute meat at ambient temperature. Chilled supply chains would be replaced by supply chain solutions that are easier to access, cheaper to serve, and deliver a powerful sustainability message with important energy savings.

Objectives

Within this white paper we consider three international revolutionising technologies that have to date raised over $20m Australian dollars and if not operating commercially are getting ever closer. They are examples of academia and entrepreneurs listening to
the changing dynamics within the global food market and committing resources that benefit the environment whilst also having the potential to remove significant cost from international supply chains.

Key findings

Successfully developing a solution that enables access to an ambient supply chain would open new growth channels such as:
• global online channels
• global retail markets
• supply into developing countries with limited chill chain capabilities
• rations or emergency response meals
• space or sea travel
• hospitality / travel
• D2C with international reach
• meal kits or meat boxes

Benefits to industry

The introduction of an ambient supply chain for Australian red meat would be significant. Included amongst these benefits would be;
- Reducing the cost via the removal of a chilled supply chain.
- Improved sustainability messaging through ambient distribution.
- Reduced food waste through extended life, less in store mark downs.
- Increased profitability through access to new markets lacking chill capability, i.e. India.
- Technology could be adopted in a staged approach, ambient chill chain, and retail display.

MLA action

Share the results with the Australian red meat industry in order to identify interested commercial operators that want to participate in additional research and development.

Future research

• Strategic engagement with each company positioning Australian red meat at the forefront.
• Commitment of funding through a gated process to support red meat trialling and validation, lead at pace and facilitate fact-based
decision making, with engagement of Campden (UK) or CSIRO supporting validation design processes.
• View the technology firsthand to better understand its capabilities and potential limitations.
• Engage a strategic resource to liaise and support the development of the technology representing MLA and building the
relationships.
• Deliver an industry update communicating the work delivered to date and start building interest and awareness.

 

More Information:

Contacr project manager: John Marten

Email: reports@mla.com.au