Improving Communication & Building Knowledge

across the Beef Supply Chain

Graham Centre Beef Forum

Jasmine NixonLivestock Strategic OperationsTeys Australia Wagga Wagga

(02) 6938 3064

Teys Australia

Commodity Cycle

Our industry is facing a number of strong challenges

Costs of production

Other Beef Exporters Other Proteins

Therefore Businesses & Industry must evolve to survive

How do we build a stronger supply chain?

Carcase & Offal Inspection

• Export accredited plants; operate under the Australian Standard for Meat Production.

• All carcases & offal are inspected by independent 3rd party meat inspectors, approved by AQIS.

• Observe high rates of various diseases and pathology.

New Animal Health Feedback

• New information link back to producers

• Teys Animal Health Summary Reports– Pathology observations made by trained independent

3rd party meat inspectors, approved by AQIS.

– Recorded against each individual carcase

– All direct consignment cattle will be provided with a Teys Animal Health Summary Report.• Includes a summary of the five major issues observed (if any)

• List of observations per individual animal

Top 5 major conditions

Observationsfor each individual animal

Current Impact

Liver-Fluke

20% of cattle

Lung Pleurisy

5% of cattle

Liver Abscess

8% of cattle

What is this potentially costing your business on-farm?

Roll-out

• Teys Animal Health Feedback Reports

– Progressive roll-out across all Teys plants over next few months

• Developing information tools for producers

• Encourage producers to discuss their results with their Teys buyer & seek further advice from their local animal health professional

Feeder to Finished Steer

New Teys Feeder Cattle Benchmark Reports

New Feeder CattleIndividual Performance Reports

• Knowledge is power – feedback is key

• Individual animal health data

– Will be available over next few months

• Feeder cattle performance data

– Now available to cattle sold to Teys Feedlots

You can’t manage what you can’t measure

Jasmine Nixon - Teys Australia(02) 6938 3064jasminen@teysaust.com.au

• Key drivers of Carcase Value

Sale value of meat – QUALITY

Weight of saleable product – YIELD

Current indicators weight & P8 fat Very poor indicators of true lean meat yield

Dual Energy X-ray Absorptiometry (DEXA)

DEXA

Using technology to provide a better indication of carcase yield

DEXA - what is it

• Measures the difference in

two energy x-rays that

passes through tissues;

o bone,

o fat,

o lean (muscle)

• First developed in 1987 as

a medical tool to estimate

bone density and human

body composition.

• In an animal carcase, the

bone free lean mass is

meat so provides a more

accurate assessment of

overall lean meat.

And it works

R2=0.73, RMSE=3.49R2=0.88, RMSE=3.21

R2=0.93, RMSE=0.81

CT Lean% CT Fat%

CT Bone%

Lean meat yield – Improving accuracy

49.20

53.90

58.60

63.30

46.2 53.2 60.2 67.2

LMY%

MSA Index

LMY% vs. Index

Estimated LMY

Possible LMY Range

Current Industry Practice- Carcase Weight- P8 Fat

49.20

53.90

58.60

63.30

46.2 53.2 60.2 67.2

LMY%

MSA Index

LMY% vs. Index

Estimated LMY

Possible LMY Range

Lean Meat Yield Equation Calculation developed by Murdoch University using:

- Carcase Weight- P8 Fat & EMA

Lean meat yield – Improving accuracy

49.20

53.90

58.60

63.30

46.2 53.2 60.2 67.2

LMY%

MSA Index

LMY% vs. Index

Measured LMY

Possible LMY Range DEXA

Even better accuracy on

lean meat yield

New Teys Carcase Feedback - yield and quality

First Stage:Lean Meat Yield percentage (based on equation developed by Murdoch University)

now provided on feedback for all over the hooks cattle sold to Teys

VBM Group – yield and quality

Lean Meat Yield % and MSA Index comparison provided on feedback report for all over the hooks cattle sold to Teys

Will transition to new, more accurate technology as it becomes available e.g. DEXA

Progress Update

• Lean Meat Yield % now being provided to all Teys producers (based on Murdoch University calculation)

• DEXA trials completed with promising results

• Currently in process of building DEXA unit at Teys Rockhampton plant to allow commercial trials to commence in late 2017.

• Proposal to build next unit at Teys WaggaWagga plant early 2018.

The big picture: We must improve productivity all through the supply chain

VBM is one opportunity

– Payment on the basis of actual weight of meat and

quality

Gold

Silver

PlatinumWeight (Yield) x = $

Weight (Yield) x

Weight (Yield) x

= $

= $

$TRUE VALUE

Yield x Quality + Tiered Branding

Data Flow DiagramAnalyzing data from supply chain and presenting it in actionable form will be the key to success

TeysData Matching and

Analysis

Producer

Reports

AHData

LeanMeatYield

The key is accurate and relevant feedback linking consumer value

• What is the true value of each animal?

• What is creating the value difference?

• How can I identify the good and the bad?

• How can I instigate continuous improvement?

• Clear price signals will drive dramatic change.

THIS IS THE FUTURE

• Knowledge is power – accurate feedback relays value• Value based payment stimulates action• Producer action moves the curve• A high value animal costs the same to breed, feed & process• Additional revenue must be shared by participants• Teys is committed to this path