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L.ARL.0001 - Segmentation of Australian Meat Processors and Value Adders – key findings

That MLA an AMPC have conducted a processor segmentation study to better understand their challenges and improve how we communicate to processors to assist implementation of our strategies against the strategic plan.

Project start date: 26 June 2022
Project end date: 30 November 2022
Publication date: 12 July 2023
Project status: Completed
Livestock species: Grain-fed Cattle, Grass-fed Cattle, Sheep, Goat, Lamb
Relevant regions: National
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Summary

This project will conduct a prossessor segmentation study to develop several key personas and frame key attitudes towards market and technology advancements and barriers for innovation adoption.

Understanding manufacturers’ risk appetite and drivers to trial and adopt new product and process innovations that grow demand more so than improve operational excellence is an underlying aim of this research for both MLA and AMPC.

That is, at different innovation horizon stages (what’s now/next/possible) and or market/technology readiness, it is assumed that different needs and communication and adoption plans will be needed and segmenting the industry with these insights will better engage them and drive change as described in the Red Meat Industry Strategic Plan 2030.

Objectives

The objectives of the project are to gain a detailed understanding of adoption behaviours, attitudes and motivations and of the different types of processors/value adders in the red meat industry.

The overall objectives of the project were to:

  • develop a meaningful segmentation model of processor and value adder stakeholders based on their differences in adoption of R&D outcomes and improvement initiatives
  • develop value propositions for MLA and AMPC with stakeholder segments.

Key findings

The research identified processor drivers and barriers to adoption of new processes and technology. The key factors leading to differences in adoption of innovation were the processor capacity and appetite for adoption of innovation.
Capacity for adoption is largely a factor of:

  • availability of finance
  • management time and skills available to manage adoption
  • plant infrastructure – capacity to introduce innovation into existing infrastructure

The appetite to adopt a particular innovation depends on:

  • its alignment to company goals and objectives
  • the perceived benefit to be gained
  • the company leader’s/senior management’s interests
  • awareness and understanding of the innovation
  • the perception that the company will be able to benefit from its introduction
  • suitability for use with meat processed
  • benefit alignment with product/markets serviced.

    As a result, the appetite to adopt innovation usually varies according to the type of innovation.

Benefits to industry

The project will enable AMPC and MLA to:

  • identify processors most likely to adopt specific innovations
  • determine the likely industry appeal of potential innovation planned for investment in R&D
  • tailor engagement with processors to better target each processor’s key drivers and barriers to adoption of innovation in order to maximise adoption of R&D outcomes, industry developments and continuous improvement initiatives.

MLA action

The outcomes from this project will inform and tailor MLA's communication to processors to help drive adoption of R&D.

Future research

The findings indicate that engagement with processors and adoption of innovation can be optimised by tailoring communications and innovation activity to the needs and wants of each segment.

It is also recommended that developers of innovation communications refer to previous research conducted for MLA in 2021: Communications channel research – off-farm stakeholders for further guidance for optimising processor communications. No further research is recommended at this stage.

More information

Project manager: Jack Cook
Contact email: reports@mla.com.au