Lamb Production

Sheep CRC claims $317 million net benefit to meat sector

Sheep Central, May 13, 2019

AUSTRALIA’S sheep meat industry has $317 million of benefit from the Cooperative Research Centre for Sheep Industry Innovation over the last 19 years, a new assessment has found.

The economic assessment was done for the research centre or Sheep CRC to help measure the impact and adoption of the tools and technologies it has developed, before it closes its doors on June 30 this year.

The Sheep CRC said today the assessment of its meat program estimated a $317 million net present value benefit based on the current rate of adoption of technologies driving improvements in meat eating quality and value, and the impact they will have on productivity over a 15-year period from 2015-2029.

The study, conducted using the CRC Program’s economic assessment protocols, measured the benefits accruing to industry from: the development of a cuts-based Meat Standards Australia (MSA) grading system for measuring saleable meat yield and eating quality, and providing enhanced feedback to producers; new processing technologies to assist in meeting consumer expectations; and genetic technologies to assist breeders deliver higher quality lamb.

Dr David Pethick.

Sheep CRC meat program leader Professor Dave Pethick from Murdoch University, said the estimates, which were independently reviewed, showed an overall cost:benefit ratio of 1:4.5.

“By improving customer satisfaction and driving demand, these technologies have together delivered an increase in the price paid to producers of 20c/kg and a benefit to processors of 50c/kg – or an additional $15.40/carcase,” Prof. Pethick said.

“This is an impressive result and would not have been achieved without the collaborative approach taken by the sheep industry and the meat processing sector, led by the Lamb Supply Chain Group which was established by the Sheep CRC.”

The Sheep CRC said the economic analysis factored in a cost of $70 million for the research, development and commercialisation of these technologies, including $40 million in foundational research conducted in the previous terms of the Sheep CRC from 2001-2014.

“In addition, in-kind contributions from research organisations, meat processors and other companies involved in the meat supply chain was estimated at a further $19M,” Prof. Pethick said.

“In valuing the impact of these technologies the cuts-based calculator developed by the CRC in collaboration with Meat & Livestock Australia (MLA), was identified as a key contributor, delivering an extra $1.80/carcase for 10 percent of carcases more accurately allocated to the correct market thanks to this tool.

“As a result of information from the calculator, more carcases will meet processor targets for improved margin and delivering increased value.”

More information is available at’ however the full economic assessment report will not be made public until the Sheep CRC’s final annual general meeting this year.

Source: Sheep CRC.


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