BISP 2020

BEEF INDUSTRY STRATEGIC PLAN 2020

NFF House

14-16 Brisbane Avenue

Barton ACT 2600

Ph: +61 2 6269 5600

Web: http://www.cattlecouncil.com.au/

http://www.cattlecouncil.com.au/


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TABLE OF CONTENTS

President’s Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

How BISP2020 is Structured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Strategy Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Priorities for Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

1. Top Priorities for Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

1.1 Building Industry Capability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

1.2 Market and Promote Australian Beef – Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

1.3 Welfare of Animals within Our Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

1.4 Optimising Product Quality and Cost Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2. High Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

2.1 Product and Systems Integrity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

2.2 Production Efficiency on Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

2.3 Efficiency and Value in Trade and Market Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

3. Medium Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

3.1 Stewardship of Environmental Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

3.2 Market and Promote Australian Beef – Domestic Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

3.3 Beef in a Healthy Diet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Monitoring, Evaluation & Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Appendix 1: Benefit Cost Ratios and Net Benefits to 2020 and 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . 35

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Australia produces 4% of the world’s beef supply, with a value of $9.04 billion.

Photo by Sally Edwards.

PRESIDENT’S FOREWORD

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PRESIDENT’S FOREWORD

Cattle Council of Australia is the peak industry body responsible for

representing and advancing the interests of Australia’s grassfed beef

producers to Government and industry stakeholders.

The development of the ‘Beef Industry Strategic Plan 2020’ (BISP2020) is a key responsibility for the Council,

and provides the framework for defining and focusing the industry’s resources on the areas that will generate the

highest benefits. BISP2020 will help direct resources of both the Council and the organisations that deliver industry-

funded programs: Meat and Livestock Australia (MLA), Animal Health Australia (AHA), and the National Residue

Service (NRS).

The new strategy has been developed from consultation with grassfed levy payers and other key industry

stakeholders across Australia. It is backed by rigorous economic modelling and analysis and represents the beef

industry’s response to the wider Meat Industry Strategic Plan (MISP2020).

Producers across the country want Australian beef value chains to be the trusted first choice globally for quality beef

products and livestock. To help us get there, BISP2020 lays out a vision to refocus industry efforts and resources

to strengthen Australia’s competitive position as a trusted source of premium quality and sustainable products

underpinned by world class systems.

As we look to 2020 and beyond, the long-term fundamentals for the beef industry are positive. However, the

stakes are high for producers and other value chain businesses facing rising costs and increasing domestic and

international competition – we cannot continue business as usual.

For me, the strong move towards value chain thinking highlighted in BISP2020 is the key to our industry’s future.

It means incorporating the needs of consumers at every step from the dinner plate through to the farm gate. It will

help increase transparency along the value chain, bring greater opportunities for producers to gain premiums and

foster the collaboration we know is needed to drive our industry forward.

CCA has developed a strategy that is objective, robust and represents the future goals of Australian cattle

producers. I am especially pleased to see four areas identified as Top Priority, as it helps everyone focus their efforts

on where the biggest gains are to be made.

The success of the strategy now depends on strong leadership and collaboration across the value chain to ensure

implementation. It is up to us as the producer peak body to lead by example in changing our own business model,

engaging with producers and working with other peak bodies and service organisations to deliver the strategy. We

are committed to playing a leading role in making BISP2020 a success.

Howard Smith

CCA President and

Beef producer from Rolleston, Central Queensland

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HOW BISP2020 IS STRUCTURED

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HOW BISP2020 IS STRUCTURED

The Strategy Overview section provides the context for BISP2020, with the same five key investment pillars as

identified in MISP2020. Each pillar includes the strategic intent for the beef industry, along with an indication of

what success may look like in 2020.

The process to develop BISP2020 identified many important activities that will contribute to the industry’s success.

However, the industry has finite resources and it is critical that efforts are concentrated on those areas that are

expected to bring the largest benefits. The intent is for BISP2020 to provide direction on these priorities.

Economic analysis revealed 10 priority areas that link back to the investment pillars identified in MISP2020 and the

strategic intent identified for the beef industry. Economic modelling shows that these priority areas have different

expected benefits to the industry by 2020. Therefore, they are ranked as Top, High and Medium priorities, reflecting

both the extent of change that is required between now and 2020 and where industry investment could have the

greatest impact by 2020.

TOP PRIORITY

HIGH PRIORITY

MEDIUM PRIORITY

These investment areas are

where the greatest industry

effort, resources or changed

approach need to be applied

to benefit the industry by

2020 and beyond.

These investment areas

underpin the strength and

resilience of the industry.

They involve refining,

improving and in some cases

escalating industry effort to

create more value by 2020

and beyond.

These investment areas are

important to industry success,

with the emphasis being on

continuous improvement

through to 2020 and beyond.

Most priority areas do not simply fit within one of the five key investment pillars. Instead, there are many links and

interdependencies across what is a very large and complex system.

For example, animal health initiatives help to engender community and consumer support and underpin our

market access. They also support product brands for market growth and diversification and can improve on-

farm productivity and profitability. Similarly, the stewardship of our environmental resources is vital for community

support, the long-term productivity and profitability of our land and an important attribute to help differentiate

Australian beef products in high value markets around the world.

The main implication is that no single activity area works in isolation and achieving a breakthrough will require

a deliberate, sustained emphasis on performance and results for the Top, High and Medium priority activities. In

particular, a lack of progress with the Top Priorities by 2020 will reflect poorly on the performance of all parties

responsible for strategy implementation.

Given the very significant changes required and the long lead time of R&D, there is much value in looking beyond

2020. The value of BISP2020 and the industry initiatives and actions that follow extend well beyond the term of this

plan. As such, the economic modelling conducted includes estimates of the benefits to the industry through to

2030 (see Appendix) for the priorities and actions in the new strategy.


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STRATEGY OVERVIEW

A bright future lies ahead but success is not assured. We cannot continue with business as usual and will need to embrace change and innovation to take full advantage of the

opportunities in front of the industry.

BISP2020 provides an ambitious vision to refocus industry efforts and resources towards strengthening

Australia’s beef industries competitive position. It is designed to support a profitable and sustainable beef

value chain that maximises returns based on consistent quality and fit for purpose products that match

consumer expectations.

BISP2020 emphasises the need to implement significant changes that will help to maximise the value from

industry-funded services and re-position the industry for long-term profitability. Achieving these changes will

require strong leadership and a new level of collaboration across value chains. It will involve the peak industry

councils leading by example with adherence to clear roles and responsibilities by all parties.

Consultations and economic modelling undertaken for BISP2020 confirmed five primary investment areas

(‘pillars’) with imperatives for action in each (see Appendix for economic data). The analysis provides clear

direction on where the beef industry will need to prioritise investment of its limited resources to create the

greatest benefits for all value chain businesses.

Figure 1: Five Pillars of the Strategy

Leadership &

Collaboration

Market Growth &

Diversification

Value Chain

Efficiency &

Integrity

Productivity &

Profitability

Community

& Consumer

Support

STRATEGY OVERVIEW

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Industry Leadership and Collaboration

STRATEGIC INTENT

To enable and accelerate collaboration along beef value chains by developing industry leaders, strategic

relationships, skills and modern business models for industry representation and service bodies.

Market Growth and Diversification

STRATEGIC INTENT

Concentrate industry marketing and trade access services towards growing

markets and segments within mature markets where there is a capacity and willingness to pay a premium for Australian beef and create the environment for commercial brands to flourish.

Community and Consumer Support

STRATEGIC INTENT

Maintain and improve public confidence and trust by

continually adapting industry practices in line with changing

community expectations, and raising public awareness of what the beef industry is

doing and achieving.

Value Chain Efficiency and Integrity

STRATEGIC INTENT

Accelerate the shift towards the industry

competing on the basis of responsive world class value chains using robust systems

and characterised by payment on objective measurement of product performance by

participating businesses.

Productivity and Profitability

STRATEGIC INTENT

Increase on-farm profitability by accelerating the widespread

use of proven practices and technologies for different

types of farming operations, while improving value-based signals for livestock produced

fit for purpose.

In 2014-15, Australia produced 2.7 million tonnes cwt of beef and veal. (ABS)

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STRATEGY OVERVIEW

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Industry Leadership and Collaboration

STRATEGIC INTENT

To enable and accelerate collaboration along beef value chains by developing industry leaders, strategic relationships, skills and modern business models for industry

representation and service bodies.

Success by 2020:

The rate of progress with developing industry leadership and value chain collaboration will be a leading indicator of

progress across all pillars of BISP2020. By 2020, there will be:

• More diverse and a greater number of skilled

leaders working together across the value chain

to implement targeted initiatives that make a real

difference to industry businesses

• A higher proportion of sales from collaborative value

chains meeting demand for premium quality beef

and beef products, with evidence of the benefits

being shared across the participating businesses

and value chain partners

• Industry representation and service bodies will be

more flexible, more focused on a few high priority

issues rather than spreading efforts thinly, more

accountable for their performance, have clear and

practiced roles and responsibilities and be more

valued by industry businesses and governments

• A new national cattle producer body will include the

majority of cattle businesses and production and

work seamlessly with other peak industry councils

across the value chain.

Community and Consumer Support

STRATEGIC INTENT

Maintain and improve public confidence and trust by continually adapting industry practices in line with changing community expectations, and raising public a

wareness of what the beef industry is doing and achieving.

Success by 2020:

The beef industry will have:

• Maintained and improved customer, consumer and

community confidence and trust in its products and

its production practices

• Agreed animal welfare indicators in place and

monitored, with high levels of compliance and

performance across the value chain

• Evidence of improving performance against a

baseline for environmental and natural resource

management issues of priority to cattle producers

and the community

• A cattle herd that continues to have a demonstrably

high health status with robust disease surveillance

and response plans and capabilities in place

• Sustainable production practices that are an

integral part of the commercial value proposition

and narrative for premium quality Australian

beef products.


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Market Growth and Diversification

STRATEGIC INTENT

Concentrate industry marketing and trade access services towards growing markets and segments within mature markets where there is a capacity and willingness to pay a premium

for Australian beef and create the environment for commercial brands to flourish.

Success by 2020:

• Beef exports to developing markets and growth

segments of developed markets are differentiated

from competitors to maximise returns and

attract premiums

• Trade and technical market access has been

maintained in all markets and improved in the highest

priority export markets, including implementation

of the Trans Pacific Partnership and negotiations for

a Free Trade Agreement between Australia and the

European Union

• Commercial brands are flourishing in developed

markets, enabling re-investment of industry

marketing and promotion services into emerging

growth markets

• Premiums are being paid by domestic consumers

for beef products relative to competing proteins, with

the benefits flowing to the farm gate.

Productivity and Profitability

STRATEGIC INTENT

Increase on-farm profitability by accelerating the widespread use of proven practices and technologies for different types of farming operations, while improving value-based signals

for livestock produced fit for purpose.

Success by 2020:

• Widespread application of existing R&D knowledge

and know-how of high value to different segments of

farm enterprises is delivering measurable benefits at

the individual farm level

• Effective and efficient value-based marketing is

providing clear signals for more consistent quality

livestock being produced and more product sold as

fit for purpose

• An increased number of producers are aligned and

identify with branded beef product programs

• Productivity gains are concentrated in areas that

will improve efficiency and producer profitability for

different types of farm enterprises and are not driven

by a strategy of competing on a lowest cost basis.

STRATEGY OVERVIEW

Value Chain Efficiency and Integrity

STRATEGIC INTENT

Accelerate the shift towards the industry competing on the basis of responsive world class value chains using robust systems and characterised by payment on objective measurement

of product performance by participating businesses.

Success by 2020:

• A growing number of producers are receiving timely,

reliable signals from the value chain that reflect real

value differences for their cattle, based on objective

measures of preferred attributes

• An improved beef language specification that

aligns with end user requirements is agreed

and implemented

• Reliable information is flowing rapidly up and down

the value chain, with major industry and government

regulatory impediments having been identified

and removed

• Product integrity systems and information flows that

support and enable informed decision-making for all

businesses across the value chain will be more

linked, integrated and digitised.

Photo by Sally Edwards.

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INTRODUCTION

A valuable and diverse Australian industry

The Australian beef industry is vast and diverse,

covering 48% of Australia’s landmass and

includes more than 38,000 individual businesses

employing approximately 77,000 workers in cattle

farm enterprises.1,2

Australia is the world’s seventh largest beef producer

and the third largest beef exporter, with a gross value of

cattle and calf production estimated at $11.4 billion.3

In 2014-15, Australia exported 74% of its total beef

and veal production to 86 countries at a value of

approximately $9.04 billion.4

The direct contribution of beef and live cattle to gross

domestic product was approximately 1% in 2014-15.3

1 Tonkin, Brooke. 2015. ‘IBISWorld Industry Report A0142 Beef Cattle Farming in Australia’. IBISWorld

2 MISP2015

3 ABARES, Agricultural Commodities, September 2015

4 Latest available DAFF and ABS data - figures for fiscal year 2014-15

Cattle

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INTRODUCTION

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Figure 2: Australian beef and veal production 2014-15

2.7 million tonnes carcase weight (2014-15) Source: ABS

Victoria 19.3%

NSW 22.4%

WA 4.1%

SA 5.0%

Queensland 46.7%

Tasmania 2.5%

Figure 3: Australian Beef Exports 2014-15

1.3 million tonnes shipped weight (2014-15) Source: Department of Agriculture

USA 34.9

other 9.1

Taiwan 2.3

Canada 3.0

Indonesia 3.2

Middle East 4.1

China 9.3

Korea 11.6

Japan 22.5


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Opportunities and challenges ahead

Australia’s grassfed beef industry is at a critical juncture and faces significant opportunities and challenges.

It means that the priorities and direction set in BISP2020 take on great importance.

There is real potential for growth in export markets, with rising per capita income being closely aligned with strong

and growing demand for beef in our wider region.5 Australia’s geographical proximity to key markets, the extent of

our market access and reputation as a supplier of premium quality, safe and ethically-produced beef means we

are well-positioned.

Additionally, a competitive advantage from a strong US dollar, recently achieved trade agreements with China,

Japan and Korea and an influx of capital, together provide a positive outlook,6 with industry revenue forecast to

grow through to 2020.7

Despite these encouraging factors, there are risks and constraints too. In particular, widespread severe drought

has had a major impact on producer incomes, the national cattle herd and the short-term capacity of value chain

businesses to meet demand.

These issues, together with intense and increasing competition from other proteins and from overseas beef

exporters, all create uncertainty about the future.

Developing the BISP2020

The development of the grassfed Beef Industry Strategic Plan, BISP 2020, provides a unique opportunity to

reflect on where our industry is now, where we want to be in the future and how best to get there. It provides

a framework for defining and focusing the priorities of the sector and assists in directing and mobilising the

appropriate resources.

Importantly, BISP2020 is the grassfed beef industry’s response to MISP2020 and not intended to simply mirror all

the activities and actions listed for the red meat industry.

Beef producers reasonably expect the new strategy to be objective, accountable, straightforward and broadly

reflective of the needs and values of modern Australian beef producers, businesses and their communities.

The development of BISP2020 has responded to these messages and placed a high priority on producing a

balanced strategy that cattle producers have had a hand in preparing.

5 Gidley-Baird, Angus. 2015. ‘Australian Beef: On the Cusp of Great Things’. Rabobank Industry Note #504

6 Gidley-Baird, Angus. 2015. ‘Australian Beef: On the Cusp of Great Things’. Rabobank Industry Note #504

7 Tonkin, Brooke. 2015. ‘IBISWorld Industry Report A0142 Beef Cattle Farming in Australia’. IBISWorld.

INTRODUCTION

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The development of BISP2020 follows the release of the Meat Industry Strategic Plan 2015-2020 (MISP 2020) in

September, 2015. Over 550 industry and community leaders, levy payers, co-investors and service providers were engaged at

consultations and 20 workshops around the country. On top of this, MISP 2020 incorporated thorough economic modelling that brings

a level of objectivity and increased rigor to the strategy

BISP2020 has sought to fully leverage the extensive work of MISP 2020 by adopting a similar structure, extending

the analysis and consultation and concentrating on those areas that represent the highest potential benefit for beef

industry businesses.

Developing BISP2020 involved extensive desktop research, two workshops (Canberra and Brisbane), online

feedback through discussion papers and the conduct of further, rigorous independent economic analysis.

BISP2020 is objective, robust and integrates the findings, analysis and insights from stakeholders on the future

goals of beef enterprises.

Responsibilities and accountabilities for ensuring implementation

BISP2020 sets an agreed direction and priorities, but benefits can only flow to cattle producers and other value

chain businesses if it is implemented. The various meat industry bodies each have responsibilities, roles and

accountabilities for ensuring the new plan implementation.

Improved collaboration and purposeful effort by the peak industry councils from across the beef value chain will be

pivotal in creating the necessary momentum and urgency for change. Policies and early action by peak councils

such as the Cattle Council of Australia will create the opportunity that enables the industry service providers to

achieve the changes planned in the strategy.

BISP2020 will help to direct the efforts and resources of the Cattle Council of Australia and the industry service

bodies: Meat and Livestock Australia (MLA), Animal Health Australia (AHA), and the National Residue Service (NRS).


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PRIORITIES FOR ACTION

BISP2020 identifies and ranks 10 priority areas of activity for industry to pursue. The activities are ranked

as Top, High or Medium Priorities, reflecting the extent of change that is required between now and 2020

and providing guidance on where industry investment could have the greatest impact as indicated by

economic analysis.

Figure 4: Economic Modelling:

Priority areas and the estimated net benefit to industry income by 2020 *

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Top Priorities High Priorities Medium Priorities

* Building Industry Capability priority was not modelled


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The following sections describe the Top, High and Medium Priorities and list the related imperatives as identified

in MISP2020. In many cases, the overall ranking of a priority area is due to the large expected benefits of just one

imperative (see Appendix).

Each imperative and the accompanying actions are placed in order of descending importance, with the Key

Performance Indicators (KPIs) and main organisations responsible for implementation.

The intent is for BISP2020 to provide direction for the various parties responsible for strategy implementation. All

activities link back to the five key investment pillars identified in MISP2020 and the strategic intent identified for the

beef industry.

PRIORITIES

PILLARS TOP HIGH MEDIUM

Leadership &

Collaboration

Building industry

capability

Consumer &

Community Support

Welfare of animals

within our care

Stewardship of

environmental

resources

Red meat in a

healthy diet

Market Growth &

Diversification

Market and promote

Australian beef –

export markets

Efficiency and

value in trade and

market access

Market and promote

Australian beef –

domestic market

Value Chain

Efficiency & Integrity

Optimising product

quality and

cost efficiency

Guaranteeing product

and systems integrity

Productivity &

Profitability

Production efficiency

on-farm


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1. Top Priorities

The following priorities, imperatives and activities are areas where the greatest industry effort, resources or changed approach need to be applied to maximise

industry benefits by 2020.

1.1 Building Industry Capability

The Australian beef industry is large and complex. While the complexity of the industry can’t be reduced, the

industry can invest to develop a diversity of talented leaders with the ability to deal with complexity and lead

transformational change within and across businesses and the various industry service bodies.

Investing in people is important, but industry institutions such as representation and service bodies must also

innovate and evolve to become more effective, efficient and valued by beef industry businesses.

In particular, the peak industry councils will need to play a much stronger role in leading the changes required for

more collaboration across value chains. For the national cattle producer representative body, it will mean creating a

new business model that cattle producers want to be part of, and working cooperatively with other peak councils to

find solutions and create momentum for efficient implementation.

Imperative: Developing skills and leaders to support the industry

Activities Key Performance Indicators Who

• Strategic investment

to support improved

leadership development

and governance training

at a variety of levels across

the beef value chain

• Evidence of increased stakeholder confidence with the

leadership of industry councils, boards and committees

compared with a 2016 base line.

• Evidence of annual increases in the number of

participants drawn from across the whole value chain in

industry leadership development programs.

CCA

MLA

• Provide a variety of

development and career

pathways for a diversity

of leaders

• More people are competing for industry leadership

positions each year, compared with 2015.

• Annual increases in the diversity of people sitting on

industry boards and committees, including a greater

representation of women.

CCA

MLA, CCA


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Imperative: Sustainable and valued industry structures and programs


• Develop world

class business

models for industry

representative bodies

that satisfy the service

demand of value

chain businesses

• New national cattle producer representation body includes

the majority of cattle production and majority of businesses.

• Improved performance of all peak industry councils in the

beef value chain as independently measured using common

criteria in 2016 and 2020.

• Evidence of increasing levy payer satisfaction and

confidence with industry services against 2015 baseline.

CCA

Peak Industry

Councils

MLA

• Adapt joint industry-

government

programs to meet the

current and emerging

needs of levy payers

• Evidence of high and improving joint program

performance and value for money to producers against a

2016 benchmark.

MLA, CCA,

Australian

Government

1.2 Market and Promote Australian Beef – Exports

Marketing services are an area where investments by the industry can directly influence changes for the benefit of

industry businesses. Marketing and promoting Australian beef and beef products will involve the industry pursuing

a strategic and targeted approach to create demand in growing profitable markets and market segments for

premium quality Australian beef products.

The Top Priority ranking here is almost entirely due to the large expected benefits that come from marketing and

promotion in developing export markets - an expected benefit of $389 million to industry net income by 2020.

Significant benefits will also be generated from our developed export markets, while the benefits expected from the

Australian domestic market would be comparatively much lower.

Imperative: Marketing and promotion – export markets


• Implement tailored

programs to stimulate

customer and

consumer demand

for Australian beef in

developing markets

• Independent evidence that industry export marketing

efforts in developing markets provide a return to livestock

producers of $6 for every dollar of expenditure.

• Evidence that importers, supermarkets and mid to high end

food service operators in developing export markets have

an increased awareness and understanding of MSA as an

indicator of eating quality underpinning beef brands.

MLA

• Identify segments

in developed export

markets that offer

substantial growth

potential for Australian

beef and implement

tailored programs

• Evidence that the trade (importers, retailers, and food

service operators) in high value developed export markets

is prepared to pay a price premium for Australian beef

based on perceptions of food safety, integrity and quality.

• Independent evidence that industry marketing efforts in

developed markets provide a return to livestock producers

of $3 for every dollar of expenditure.

MLA


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1.3 Welfare of Animals within Our Care

Consumer and community support for the beef industry and its products is fundamental to the future success of

all businesses in the beef value chain. The main challenge ahead is to maintain and improve the ‘social licence’ to

operate that the industry has already developed with the community.

Consumers are increasingly viewing food quality much more broadly than a product’s tangible eating quality

or dietary attributes. For example, consumer perceptions can encompass the level of sustainability, including

associated workplace practices, animal welfare, nutrition and the social and environmental impact of the industry’s

activities.

The Top Priority ranking here largely relates to the importance of mitigating the downside risks associated with

animal welfare issues. It is about investing to maintain and improve the alignment of industry husbandry and

stockmanship practices with changing community expectations.

Imperative: Continuous improvement of animal welfare


• Develop, implement and monitor

continuous improvement in animal

welfare practices across the value chain

• Industry agreement reached on

indicators of on-farm animal welfare for

grassfed cattle production.

• Industry agreement reached to include

animal welfare and biosecurity modules

in the Livestock Production Assurance

Program, with implementation by 2020.

MLA, CCA

CCA,

Safemeat

• Gather evidence and prepare publically

accessible resources to communicate

what the beef industry is doing and

achieving with animal welfare

• Level of media, government and

community engagement with industry

on animal welfare through multiple

channels (e.g. Target 100 campaign).

MLA

• Monitor community and consumer

perceptions on animal welfare to

identify changes or emerging issues

• Community sentiment monitored and

activities implemented to mitigate any

shifts in perceptions and attitudes

towards industry.

MLA

• Develop and maintain an effective

capability to respond to emerging

animal welfare issues that could

influence community perceptions

• Response strategy in place with timely

and effective implementation as

issues arise.

MLA, CCA,

NFF


23

Imperative: Minimising the risk and impact of emergency disease


• Maintain and improve active

surveillance of emergency disease

through the supply chain

• Evidence of high and ongoing confidence

levels of key stakeholders (government,

industry and trading partners) in the integrity

of emergency disease surveillance.

MLA, AHA

• Maintain and regularly test

systems and plans for emergency

disease outbreak

• Industry and government satisfaction with

outcomes of emergency plan testing.

CCA, AHA

• Ensure access to priority vaccines

and resources needed for

emergency disease response

• Funding and the support of industry and

government are maintained and improved.

CCA, AHA

• Maintain and regularly test NLIS

traceability systems

• Standards and protocols that ensure

traceability (NLIS) are maintained and

continue to ensure industry performance

standards are met.

MLA, CCA

Imperative: Minimising the impact of endemic disease


• Maintain and improve active

surveillance and management

of endemic disease through the

value chain

• Evidence of high and ongoing confidence

levels of key stakeholders (government,

industry and trading partners) in the integrity

of endemic disease surveillance systems.

MLA, AHA

• Improve the information throughout

the supply chain on endemic disease

issues to enhance decision-making

• Evidence that the National Animal Health

Information System and related reporting is

valued by local and international end users.

• Processors are providing valuable

information to producers on sub-clinical

diseases on their cattle sent for slaughter.

CCA, AHA

• Accelerate the application of proven

industry practice (R&D) for on-farm

disease management

• Evidence of year-on-year reduction in

the costs of endemic disease to the

cattle industry.

MLA, AMPC


24

1.4 Optimising Product Quality and Cost Efficiency

Cattle producers and other participants who took part in consultations for this plan spoke of how the future

for the Australian grassfed beef industry must involve a shift towards competing as the ‘best value chain in the

world’, reflecting consistent quality, fit for purpose products that are underpinned by robust integrity systems. The

supporting economic analysis conducted in formulating BISP2020 confirmed that significant benefits would be

generated if businesses improve collaboration across the value chain.

Achieving this vision will require a fundamental shift in mindset and practices by industry participants and

institutions towards ‘value chains’ rather than ‘supply chains’. It means incorporating the needs of consumers at

every step from farm gate through to dinner plate.

Australian beef businesses are moving to implement value chain approaches to meet consumer demand for quality

beef that is ‘fit for purpose’. The challenge for leaders is to broaden and accelerate value chain collaboration across

the industry. It will represent a major change for many industry participants and require strong leadership at all levels

to succeed.

The flows of relevant, timely information up and down the value chain are vital to informed decision-making by all

businesses. It is an area where modern technology systems should and need to support data and knowledge sharing.

Imperative: Improving quality and compliance via enhanced value chain information


• Identify and implement

improvements to the meat

and livestock specification

language in line with end user

requirements

• Extent to which the industry accepts and

implements the recommendations of the White

Paper on beef language specifications.

• Quantified improvement in MSA graded carcasses

by 2 MSA index points by 2020 and 5 MSA index

points by 2030.

CCA

MLA

• Develop and promote the use

of tools that provide objective

measures of product attributes

• Annual increase in the number of cattle sold direct

to works being paid on a quality and yield basis

from a 2016 baseline.

MLA, CCA,

AMPC, AMIC

• Facilitate flows of information

that support timely decision-

making by businesses across

the value chain

• Evidence of a shared view by cattle producers and

beef processors on the quality of information flows.

• MSA results are used in all high value beef export

markets to underpin market development.

MLA, CCA,

AMPC, AMIC

• Test options and take action

to ensure compliance with

the Livestock Production

Assurance (LPA) Program

• Industry agreement reached for sanctions to be

imposed for non-compliance.

Peak Industry

Councils

Imperative: Improving efficiencies in regulation, infrastructure and logistics


• Identify and prioritise government

and industry regulatory burden and

infrastructure or logistical blockages

to maximising returns across the

value chain

• Quantified value of the blockages removed

for producers and processor businesses.

• Evidence that the overall cost of the

regulatory burden is reducing by 2020.

MLA, AMPC,

Peak Industry

Councils

25

Beef businesses are moving to implement value chain approaches to meet consumer demand for quality beef that is ‘fit for purpose’. The challenge for leaders is to accelerate value chain collaboration across the industry.


26

2. High Priorities

The following priorities, imperatives and activities underpin the strength and resilience of the industry. Actions with these priorities will involve

refining, improving and in some cases escalating industry efforts to create more value by 2020.

2.1 Product and Systems Integrity

The success of the industry strategy to compete by consistently meeting consumer demand for premium quality

beef depends on the integrity and trust in the supporting systems across the value chain. These systems provide

the assurance and confidence for consumers that Australian beef products are safe, true to label and fit for purpose.

They also enable the flow of information that informs business decisions right across the value chain.

The industry has made substantial and sustained investments over decades to create the world-class systems that

now underpin product claims and earn the trust of customers and consumers in Australia and around the world.

These systems are an integral part of the value proposition to beef consumers.

Much has been achieved, but continuing to improve and strengthen industry systems is an area that offers long-

term benefits for all businesses involved in meeting consumer demand for Australian beef.

Imperative: Livestock and product assurance through integrated integrity systems


• Continuous improvement of

beef and cattle integrity systems

in response to changing

customer requirements

• Satisfaction of value chain participants with

integrity systems is maintained and improved

against 2015 baseline.

• No market disruptions due to shortcomings in

industry integrity systems.

MLA, AMPC

• Transition livestock and product

integrity systems across the

value chain to be electronically

based and fully integrated

• Systems for transition are prioritised in terms of

value to the industry and ease of implementation.

• Integrity systems ranked as high priority are fully

integrated by 2020.

MLA, AMPC,

Peak Industry

Councils


27

2.2 Production Efficiency on Farms

The beef industry has invested substantially in research and other services to improve on-farm efficiency,

productivity and profitability. However, there remains large variability across farm enterprises in the adoption of

proven technologies that can increase efficiency.

The opportunities ahead are to: leverage existing knowledge that will improve the efficiency of different types of

farms; convey the commercial benefits of adoption; and consult with producers in prioritising new research.

Imperative: Decision support to improve farming businesses


• Identify and promote the use of existing

knowledge with the highest immediate

benefit for beef production businesses

in different regions

• Increasing number of producers and

percentage of national production using

proven practices and technology.

MLA,

CCA, State

agriculture

departments

• Provide avenues for needs-based

producer learning and business

skill development

• Increasing levels of producer

participation and satisfaction with

business skill programs against

2016 base line.

MLA, CCA

• Partner and advocate for rapid

expansion of access to modern

communications and other technology

for businesses in rural Australia

• Extent to which regional beef industry

businesses have comparable access

to communications and technology as

metropolitan business.

CCA, NFF

Imperative: Increasing livestock productivity through new research


• Prioritise and invest in new research

with highest potential for productivity

gains that will improve profitability

in northern and southern Australian

production systems

• Increasing productivity growth above

the baseline:

— Northern beef production of 0.5% by

2020 and 2.5% by 2030

— Southern beef production of 1.75% by

2020 and 7% by 2030.

MLA


28

2.3 Efficiency and Value in Trade and Market Access

As a highly export-oriented industry, maintaining and expanding exports remains fundamental to future industry

income. There are significant opportunities to build on past and more recent progress with trade and market

access. New Free Trade Agreements in 2015 provide the basis to further increase the value of exports. However,

as economic barriers fall, the occurrence of technical barriers to trade is of increasing concern. Industry efforts will

need to expand to prevent and reduce technical barriers to trade.

Imperative: Reducing economic barriers to trade


• Partner with the Australian

Government and the beef value

chain to defend and improve

market access

• Current favourable beef market access

is maintained.

• Increased access in developed and

developing high value markets.

MLA, AMPC,

Australian

Government

Imperative: Reducing technical barriers to trade


• Establish a collaborative

approach with government and

the beef value chain to prioritise

and take effective action to

reduce technical barriers

• Extent to which the total cost of technical

barriers to trade for beef has reduced by 2020,

compared with a baseline established by

independent evaluation.

• A strategic and collaborative approach is

implemented to the satisfaction of beef value

chain participants.

MLA, AMPC,

Australian

Government

29

As a highly export-orientated industry, maintaining and expanding beef exports remains fundamental to future industry income.


30

3. Medium Priorities

The following priorities, imperatives and activities are important to the industry and action will largely involve continuous improvement through to 2020 and beyond.

3.1 Stewardship of Environmental Resources

The grassfed beef industry has a strong record for sustainably managing the natural resources it uses. Stewardship

of the environment will continue to be important for productive use of land in the long-term and to meet community

expectations. Sustainability is also a potentially valuable attribute for differentiated beef products.

Imperative: Minimise beef industry impact on the environment


• Collect evidence of national

beef industry environmental

performance and promote proven

practices on-farm

• Evidence of improvement in environmental

performance against industry 2015 baseline.

• Increasing percentage of production where

proven practices are applied to improve

environmental performance.

MLA, CCA

• Invest in R&D and accelerate

on-farm use of technologies and

management practices to reduce

greenhouse gas emissions

• Evidence of increased use of technologies

and management practices that reduce

greenhouse gas emissions without loss to on-

farm productivity.

Imperative: Adapting to climate variability


• Invest in better forecasting and

information sharing systems to

inform on-farm decision-making

and industry strategies

• Evidence of improved forecasting and

information sharing being used for on-

farm decision-making and industry

strategic planning.

MLA, Peak

Industry

Councils

Imperative: Sustainable management of the natural resource base


• Accelerate the application of

proven practices in managing the

impact of feral animals and invasive

weeds in cattle production systems

• R&D to result in savings in livestock industry

costs due to weeds and feral animals of at

least $50m by 2020 and $150m by 2030.

MLA

• Expand industry engagement and

participation with local initiatives to

achieve better NRM outcomes

• Increasing number of cattle producers aligned

with NRM bodies as part of value chains of

sustainably produced branded products.

MLA


31

3.2 Market and Promote Australian Beef – Domestic Market

Imperative: Marketing and promotion – domestic market


• Foster the environment for

Australian beef brands to prosper

in the domestic market

• Evidence that industry marketing efforts are

providing a return to livestock producers of

$2.50 for every dollar of expenditure.

• Increasing number of consumers who identify

with a specific branded product.

MLA

• Work with retailers and the food

service industry to maintain

market share of Australian beef

compared with other proteins

• Market share maintained over 2015 baseline.

3.3 Beef in a Healthy Diet

Beef remains an essential part of a healthy and balanced diet. It is important to maintain awareness about the

nutritional attributes of beef and the industry must continue to provide objective and accessible information

for consumers.

Imperative: Position beef as a preferred component in a healthy diet


• Provide health professionals and

the wider community with access to

objective information on the nutritional

attributes of beef in a balanced diet

• Evidence of maintained or increased

consumer awareness of the importance

of beef within a balanced diet from a

2015 baseline.

MLA

• Anticipate issues that could erode public

confidence in beef as a part of a healthy

diet and respond with objective and

strategic information campaigns

• Government policy and health

professionals continue to support

the inclusion of beef in a healthy

and balanced diet and in Australian

Dietary Guidelines.

MLA

32

The success of the industry strategy to compete by consistently meeting consumer demand for premium quality beef depends on the integrity and trust in the supporting systems across the value chain.

33

MONITORING, EVALUATION & REPORTING

MONITORING, EVALUATION & REPORTING

An important focus of BISP2020 is the need for accurate and timely monitoring, evaluation and reporting (MER) on

progress achieved on the highest priority activities. This is essential not only to ensure transparency and accountability,

but also to provide a mechanism to identify and rectify areas of under-performance or under-investment. One of the first

tasks will be investing early to ensure that the industry has established robust baselines across the Key Performance

Indicators so that measurement and performance evaluation can be conducted over time.

Monitoring will be particularly important to help identify where strategies and activities should be adapted in

response to learning and shifts in the industry operating environments. MER results need to be publicly accessible to

levy payers, other investors and industry stakeholders as part of good practice in transparency and accountability.

As such, MLA and CCA should provide a BISP2020 scorecard report at their annual general meetings across the

term of the strategy. A yearly scorecard would reveal:

• The extent to which resources and efforts have been allocated to the Top Priority activities and the progress

made with Top Priority activities and KPIs; and

• Highlights of progress made with all other priority activities and KPIs.

CCA will work with RMAC and other service bodies to ensure integrated reporting cycles and standards. This is

important to ensure the strategic direction of MISP2020 and BISP2020 remain relevant and inline with industry,

consumer and community expectations.

Monitoring,

Evaluation &

Reporting

Internal Portfolio

Review

Consultation

& Realignment

BISP

Performance

Review

Report Card

to Industry


34

GLOSSARY

AHA Animal Health Australia

AMIC Australian Meat Industry Council

AMPC Australian Meat Processor Corporation

BISP Beef Industry Strategic Plan

BCR Benefit Cost Ratio

CCA Cattle Council of Australia

CWT Carcase weight

FTA Free Trade Agreement

KPIs Key Performance Indicators

LPA Livestock Production Assurance

MER Monitoring, Evaluation and Reporting

MISP Meat Industry Strategic Plan

MLA Meat and Livestock Australia

MSA Meat Standards Australia

NFF National Farmers Federation

NLIS National Livestock Identification Scheme

NRM Natural Resource Management

NRS National Residue Service

R&D Research and Development

RMAC Red Meat Advisory Council

SWT Shipped Weight

35

APPENDIX 1: BENEFIT COST RATIOS AND NET BENEFITS TO 2020 AND 2030

APPENDIX 1: BENEFIT COST RATIOS AND NET BENEFITS TO 2020 AND 2030

Benefit Cost Ratios a and Total Expected Benefits to Net Income b by Pillar, Priority and Imperative for BISP-2020

Pillar

and

Priority

Imperative 2020 Expected

Net Income

Benefits to

2020 ($m)

2030 Expected

Net Income

Benefits to

2030 ($m)

Pillar 1: Consumer and community support

1.1 .1 Continuous improvement of animal welfare 11.6 350 30.7 2208

1.1.2 Minimising risk and impact of

emergency disease

15.7 136 15.8 326

1.1.3 Minimising the impact of endemic disease 1.5 13 5.1 103

1.1 Welfare of the animals within our care 10.6 498 23.3 2637

1.2.1 Minimising industry impact on

the environment

4.7 22 15.3 175

1.2.2 Sustainable management of the natural

resource base

0.3 1 4.9 70

1.2.3 Adapting to climate variability 0.7 8 5.7 150

1.2 Stewardship of our environmental resources 1.5 31 7.6 395

1.3 Red meat in a nutritious and healthy diet 1.2 13 2.7 69

Total Pillar 1 6.8 543 16.3 3102

Pillar 2: Market Growth and Diversification

2.1.1 Reducing economic barriers to trade 4.0 58 17.5 600

2.1.2 Reducing technical barriers to trade 2.9 42 6.2 220

2.1 Trade and market access 3.4 100 11.8 820

2.2.1 Marketing and promotion—

developing export markets

5.9 389 5.9 933

2.2.2 Marketing and promotion—

developed export markets

2.9 123 2.9 294

2.2.3 Marketing and promotion —domestic market 1.3 26 1.3 63

2.2 Marketing and promoting Australian red meat

and livestock

4.2 538 4.2 1290

Total Pillar 2 4.0 638 5.6 2110


36

Pillar

and

Priority

Imperative 2020 Expected

Net Income

Benefits to

2020 ($m)

2030 Expected

Net Income

Benefits to

2030 ($m)

Pillar 3: Supply Chain Efficiency and Integrity

3.1.1 Improving quality and compliance via

enhanced supply chain information

2.1 170 7.4 1397

3.1.2 Improving efficiencies in regulation,

infrastructure and logistics

2.2 12 5.4 71

3.1 Optimising product quality and cost efficiency 2.1 182 7.2 1468

3.2.1 Livestock and product assurance through

integrated integrity systems

2.2 159 6.7 1169

3.2 Guaranteeing product and systems integrity 2.2 159 6.7 1169

Total Pillar 3 2.2 341 7.0 2637

Pillar 4: Productivity and profitability

4.1.1 Decision support for the farming system 5.4 70 9.2 286

4.1.2 On-farm productivity research 2.3 77 7.7 633

4.1 Production efficiency in farms and feedlots 3.1 148 8.1 919

4.2 Processing productivity 4.2 79 10.3 462

4.3 Live export productivity 0.4 1 1.0 6

Total Pillar 4 3.3 228 8.5 1387

BISP-2020 3.8 1749 8.3 9235

a Calculated as the expected present value of benefits, based on net industry income and costs from 2015-16 to

2029-30 in 2014-15 dollars using a real rate of return of 5 per cent.

b Net industry income of all beef industry sectors including processing.

Documents

BISP 2020