Project Cyclone: Defining insights into Australia’s global positioning of MLA’s integrity system to understand the value proposition for the supply chain (trade and consumers) across markets

Summary

The Australian red meat industry has developed and invested in a sophisticated red meat integrity and traceability system, with the ability to track all Australian beef and sheep from birth to slaughter. Food safety and animal disease outbreaks are a threat to the global red meat industry, therefore the need to have a best in class integrity tracking system to protect and underpin Australia’s red meat position and reputation is critical. While Australia’s traceability system is considered world class, there is a need for a deeper understanding of the role and value it plays and its importance in the purchase decision of Australian red meat through the value chain, from trade to retail to consumers, both domestically, but more importantly in our key export markets.

Objectives

The overarching research objective was to identify how MLA can ensure Integrity Systems are fulfilling their contribution to making Australian beef the most trusted imported red meat across markets amongst stakeholders at all parts of the value chain, ultimately maximising premium perceptions.

The following six questions were identified to address the research objective:

• Definition of trust in the context of integrity systems – what does it mean, how is it expressed, and how does it relate to red meat integrity systems.
• Awareness of AU red meat integrity systems and the link to trust.
• Perceptions of trust associated with Australian beef – relative to our main competition.
• Preference of and need for safety and its link to trust and premium pricing.
• Preference of and need for quality and its link to trust and premium pricing.
• Preference of and need for traceability and its link to trust and premium pricing.

Key findings

• Australia’s integrity system is subliminal in nature and is not top of mind for consumers.
• Inspiring trust in Australian beef is fundamental to solidifying County of Origin (COO) and industry brand reputation and standing across the value chain.
• Comprehending the details and benefits of Australian integrity systems can result in a competitive advantage and a price premium. 
• Australia as COO serves as a proxy for trust in Australian beef as one of the most trusted suppliers of imported red meat.

Benefits to industry

This research identified Australia’s traceability system is a proof point that strengthens Australia’s Country of Origin (COO) credibility and underpins integrity and transparent business practices.

The opportunity exists to educate global markets about the benefits of Australian traceability and integrity system features to their country – across all parts of the value chain.

Demonstrating the competitive advantages that make Australian integrity systems more trustworthy and beneficial than others will help maximise premium perceptions.

MLA action

The key insights and recommendations will help inform the questions for the "Trust" Module in the Global Tracker Survey with consumers around product integrity drivers.

Future research

Future research should focus on evaluating value propositions to encourage trade, retail and consumers to actively use Australian traceability and integrity systems to understand the farm to table journey across the value chain, amplifying Country of Origin perceptions of responsible practices in raising beef that is ethically and humanely produced, and does not use artificial inputs (e.g. antibiotics or hormones) when grown/produced, that may compromise the health of the end users.