Profitable livestock production Q&A
So are there are any questions of Trish, Jason, Michael, or Kate?
Hi. Maggie Atkinson from JCU. This is for Michael Lyons. I was really interested in your IBF
project. Is that something that other people are doing, or is this really cutting edge and out there?
I think someone else would have a better opinion than me. It's very new for us in our area. But I
think it's very popular in Brazil. We went to in vitro Brazil, and they transferred 40,000 embryos
that year. So it's very popular. Maybe Jason or Kate could give a better indication of how
prevalent it is other areas.
I think you've summed it up well. In other countries, it's a lot more prevalent than here. I think
what's more important is the application of the range of technology. So there's not much use
using IBF to get more of something that's not destined or has a good use for your business. And I
think what these guys have show is how you can actually use multiple selection tools and
technology to split up that process. So I think it's a great example of how to use the technologies.
That was very exciting.
My question is for Kate. My name is Caroline [INAUDIBLE] from [INAUDIBLE]. I was just
interested that you said you took a DNA sample from every carcass, and I was wondering for
how long those samples are held.
Sure. We do take a DNA sample from every carcass processed under our certified Australian
Angus beef and Angus Pure brands, and those samples are help for three months. And that's
managed by Zoetis, formerly Pfizer Animal Genetics. Three months is generally the life of the
product, so hence why the samples are only kept for that long.
Just a question for Jason. Phil [INAUDIBLE] from the [INAUDIBLE] for Spatial Information.
You described yourself as a major player in the Australian market, but from a global context, in
terms of the innovation, the technology development, the R&D, and I suppose as you move
forward in terms of developing a competitive edge, to what extent do you see family through to
other corporates in the Australian market as your competitor, or as effective as your partner, to
draw out some of this innovation and change from an industry's perspective?
Thanks, Phil. So from our point of view, it absolutely is partner. So we don't see any producers
as competitors. And I have trouble seeing anybody in the supply chain as a competitor. It sounds
a bit theoretical, but other proteins is what people talk about as being competitors. But the global
demand in the next years up to 2050 for animal proteins is going to far outstrip demand. And
we've got a lot more challenges in front of us than competition.
And one of them is using technology, increasing productivity. For Australia, it's being able to
produce the product that consumers want. So when you look at technology, I think the biggest
challenge we have is the socialisation of research and development and the way that's applied.
And because of the fragmentation of the industry and the decision making processes we have, we
end up with-- what we get agreement for as far as R&D is concerned, whether that be support or
the actual programmes, then actually has limited utility right across the industry.
And if you just take livestock improvement-- so genetic technologies, for example-- when you
look at the average size herd, for someone to apply new genetic technologies, it has to have a
very high level of accuracy, because they have a small number of animals. If it's only got a 50%
accuracy and you've got two head, then one will be good, one will be bad. So this is difficult.
But if you've got larger numbers, the size of an effect is much more important than the accuracy.
So if you can shift a population to increase compliance or shift a population to improve
productivity, that actually provides real value to the industry. Yet it's very hard for our R&D to
be applied that way, because it's so fragmented. So I think competition is the least of our worries.
And that's probably restrained just where people see trying to retain information or advantage
and thinking that that's going to help them. And we're very much of the collaborative view
moving forward, regardless of whether that be other people supplying it, or a seamless supply
chain to us, or partners at service process or feed lot for us, or help us market whatever it might
be. We've got to have a lot more collaboration and focus on the big game, which is the global
demand for animal proteins.
Hi. Ellie [INAUDIBLE], Angus and fat lamb producer from Holbrook. Kate, just a question for
you. Firstly, thank you. Any chance for us as commodity producers to evaluate our product, we
welcome. And CAG have done an amazing job at that.
You mentioned you've been around for about 40 years. Why has it taken others so long to do the
same sort of thing? I know Hereford Society are talking about branding their product at the
moment. So I guess getting to the question is, do you think other breeds will follow, and will this
confuse consumers, and will there be a proliferation or a saturation of branded beef products in
the market?
Ellie, before I answer your question, I appreciate-- I owe you an email with some information
that you asked me for two weeks ago. I see it as a positive thing, new brands coming into the
market, in terms of brands based on breed or raising claim. I think the consumer demands is not
only getting more discerning about what they eat, but where it comes from and how it's raised.
And if that's what the consumer wants, then that's what we should deliver. And other brands
offer a point of difference. And I think with other brands, they will manage their quality, and
they will manage their marketing materials, et cetera. And they will be responsible for their
success or failure. And Angus will continue to do what we do, and we will continue to be
innovative, and just try and keep ourselves out there.
In answer to your part about will it confuse them, not if done properly. So it's about the level of
information you give them, keeping it simple, but keeping it truthful, and making sure that the
consumer has a point of difference to choose from.
Hello, Jason. Katherine Marriott here. How are you?
Good. I was just wondering-- with regards to your new abattoir in the north, how do you think
that's going to affect the live export industry, and what do you think that's going to do, or how do
you think that's going to contribute to the viability of the northern beef industry as a whole?
Thank you.
Thanks, Katherine. I think it can only have a positive impact on the live export industry. They're
totally complimentary. So the plant we're now is largely a manufacturing plant, so its main
source of supplies is cull cows. And the live export industry, of course, is mostly young cattle-or some cows, but they're not necessarily cull cows all the time. So the more demand for live
export cattle, the more young cattle we need. You need the more cows you need to produce
them. So we think that they're very, very complimentary.
And as one of the largest producer of cull cows, that's obviously the driver behind the plant, but
we're also one of the largest live exporters as well. So we certainly wouldn't create something
that's going to solve one problem and create another. We see them as being totally
complimentary.
Most importantly, it provides alternative marketing options for cattle out of the north, which
historically have had very limited options. So manufacturing type cattle have had either a very
long run trip or very limited market options. And certainly, providing an alternative market for
those cattle is the driver for the plant. So we see this as having an opportunity to revolutionise
that northern production system, turn the cow herd over faster, cull on performance, because you
know you can actually capture value for those cows and replace them with a high-performing
young female. And that will be certainly the way we'll use it in our company.
Lindsay Ferguson from Regional Development Victoria. A question for Kate. Earlier on in your
presentation, you talked about your organisation owning a business which did the testing of the
genetics, is that correct, for Angusness?
I'll just have to get you to clarify what you mean. The testing of the genetics-- so you mean in
terms of verifying breed?
That's correct.
So how we do breed verification is in a very conventional manner. It's done through producer
declaration, visual assessment, true to phenotype. So to place an impost on the producer to
genetically prove that that animal was Angus through DNA testing would just be another cost,
which would be not only commercially difficult, but unsustainable in the turnaround time. It
could take up six weeks to receive results, and your cattle are ready to go. So we don't own the
company that does the genetic testing. We own the company that wrote the standard for what
constitutes Angus and how that programme must be managed to ensure that's achieved and
assured. Does that answer your question?
Yep. Thank you.
Trish, if I may. Sitting up there, having no questions. Now, global stockpiles of beef-- given that
everyone had plenty of warning that once the season broke in Australia, red meat, particularly
beef, may become in a shorter supply-- and you've mentioned that the US is starting to rebuild its
herd, Brazil has got greater access to other markets-- has the beef, in particular on a global
market, peaked, and is it starting to come off?
Is it starting to come off the-Globally, do you think we've seen the peak?
It's hard to say. I think it's got longer to run. Our supplies will come off quite a bit. I think Brazil
is also-- their supplies are looking at being down as well. Their exports are certainly down. US
exports, they don't have a lot of access to exporting to Japan. They will keep concentrating on
that market. But I think we've got quite a few years to run yet.
OK. If there's no further questions, I'd like you to thank our speakers this afternoon. Thank you
for staying on time and answering the questions. So thank you very much to Kate, Michael,
Jason, and Trish.