Perhaps the most exciting agriculture sector for 2016 has been beef cattle. In the short term, some big prices have been most welcome, but it’s the evolution of technology and how it might change the industry which has been most interesting.
In 2017, lamb and beef producers, via their peak representative bodies will get the opportunity to vote on whether new objective measurement technology for carcase grading is paid for out of levy funds.
For beef producers, this would mean for 12 months, $2 from each $5 a head levy to go towards paying back a commercial loan Meat and Livestock Australia would take to cover the cost of the new equipment.
Therefore, by voting on this issue, producers firstly will make a decision on how they will be paid for carcases by the meatworks into the future. If the majority of producers vote in favour of funding the introduction of this technology, then industry will also own the data collected.
The new technology includes various pieces of equipment which, with 85 per cent accuracy can measure bone, meat and fat ratios of a carcase. The big ticket item which will potentially advance the yield accuracy is the dual energy x-ray absorptiometer. Current yield estimate methods are only 35-40pc accurate. Other new technology will also objectively measure eating quality traits.
Secondly, if producers vote to fund these technologies, it will be a requirement that abattoirs provide the data as feedback. This data can be integrated into performance recording and on-farm management systems to bring increased rates of genetic and production gains. This would better equip producers to breed stock with both good eating quality and good yields – eating quality and yield typically being antagonistic traits. By better managing these two traits, it will position beef to efficiently shift from commoditised to higher value markets and therefore better compete with low-cost producers such as Brazil.
Some in the industry are seeking more information around how long this technology will last before it is superseded, but if it brings significant gains quickly, the industry will likely be in a better position to afford upgrades into the future while also retaining or capturing markets.
It also provides a solution to the difficult issues around carcase grading and transparency, which have been the focus of recent inquiries, but with no other clear solutions.
