Australian sheep industry leader, Roger Fletcher, from Fletcher International Exports, examines how the industry pulled itself from the ashes and rose to prosperity in part two of his analyses.
Processor improvements
SEPARATING primals from the carcase has meant we have been able to focus on certain country requirements and tailor products to suit their demand. This has increased our return on the animal as we have other options rather than just selling straight carcases.
Our sheep industry workforces have become more efficient due to emphasis on employee training and development; this has seen improvements in productivity, business performance, yields and overall business success. Having this efficient workforce has seen the sheep industry compete closely with other global proteins.
Less but larger meat companies have strengthened our markets as end customers now identify with major brands on quality and consistency, this has grown demand and taken lamb and mutton away from a commodity status.
Consumers are now more brand conscious than ever and are going out of their way to buy brands they can trust. Large privately owned single species plants allowed focus on marketing, which wasn’t there with council owned multi-species abattoirs and has permitted more focus on efficiencies. Quality assurance is now owned by the individual businesses and not by the government.
The industry has seen huge developments with quality assurance as processors see the importance maintaining the highest standards for customers. Brands are now more valuable, with companies seeing the importance in having a consistent product with high quality as consumer demand increases. We have achieved longer shelf life due to better shipping, road transport,refrigeration and hygienic processing. This has enabled chilled lamb retail programs with retailers around the globe and driven growth in consumption.
On-farm development
YOUNGER generations are becoming interested again as they are now seeing higher returns and a positive industry outlook. We now have a better understanding on what our customers want giving farmers direction so they can tailor their livestock to suit demand. They are focusing more on breeding and genetics, which is proving profitable as premiums are received. Vertical integration has allowed costs to be targeted across entire supply chain, which has improved returns through cost reduction.
Improved welfare practices are being used right across the board, which has given the industry an improved view from the public. Farms are running less livestock today but do it more efficiently with better technology giving them higher lambing percentages, higher yielding wool clips, better weight gains, feed conversion and lower mortality rates.
With wool exports continually growing and historically high wool prices producers are getting back into the industry. Fine and superfine wool demand has increased as active leisure wear becomes more popular. These fine wool types are well suited for next to skin wear with this market seen as a key growth opportunity for the industry.
In summary
FOR the industry to keep growing we need to massage everything we have done in the last 27 years so the demand for our product domestically and internationally improves and develops. During my next column I will discuss the major parts of the Australian sheep industry that need to be reviewed and improved if the industry wants to keep moving forward and remain competitive. Some of these include.
- Reviewing levy funded bodies and their role in the industry.
- Improving roads, infrastructure, wharfs and transport.
- Initiating free trade agreements with India, Taiwan, UK and the Middle East.
- Growing global market access and continuing reliable relationships.
- Improved marketing and product development.
- Improve research and development to attain more efficiency in processing and on farm.
- Developing and growing industry security.
- Battling new industry challenges and red tape.
- Managing drought and adverse seasons.
