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Supply Chains of the Sheep and Goat Meat Industry

05 November 2021

The purpose of this report is to identify and map the supply chain models that exist in the Qld Sheep and goat meat industry. This will provide a base to develop information and feedback to government and industry to address identified problems and prospects. The underlying aim of this research and subsequent policy advice is to help producers within the industry increase their financial returns and contribute to economic growth in sheep and goat producing communities.

To map and classify the supply chain, interviews were conducted with a number of intermediaries. This allowed the structure of sheep and goat meat supply chains to be assessed in the context of networks, key attributes and critical linkage points.  The questions were centred around mapping the supply chain structure and processes. The supply chain questions were conducted using different thematic foci on where value is added, key aspects of the links that make them flexible or rigid, and limitations or opportunities in the supply chain.

Animal management and production was recognised as an integral part of the supply chain.The impact of wild dogs was noted as an issue particularly in southern Queensland, from Warwick through to the western corner.  It was noted that the management of breeds and capacity to access improved genetics both for sheep and goat meat would be key to the meat industries’ expansion in Queensland. These genetic improvements may focus on the meat quality and taste, along with animal production traits and characteristics. It wsa also identified that was a critical shortage of expertise regarding animal health, nutrition and management.. The technical support accessed  for some of the producers was in Western Australia, which was extremely limiting to the growth of the Qld industry. Goat meat may achieve this once goats are removed from the Biosecurity Act, and sustainable management program is developed.

Sheep and goat meat was identified as having a relatively short-supply chain, particularly in Outback Qld, providing increased food security. However, cold chain logistics are still required to maintain the food network and support the expansion of market access for a number of intermediaries in the supply chain.  The road network is critical to this in ensuring all weather access.  Employment was identified as a key issue across the supply chain and this, in conjunction with very low margins for some intermediaries, resulted in very fragile supply chains. Informal networks were currently fostering the development of new markets and supporting the viability of a number of players in the supply chain.

Introduction

Supply chains are complex and involve a number of key operators and links to ensure that they function efficiently. The sheep and goat meat supply chain in Queensland is simpler than some agrifood supply chains but still involves a number of agents that operate and contribute to the overall chain.

The performance of agrifood supply chains such as for sheep and goat meats can be affected by a range of external factors (e.g., market information, quality of road network) which are typically not considered in individual business supply chain analyses but are more relevant at industry levels. Agrifood supply chains at an industry level typically provide individual producers, industry bodies and governments with information about issues (e.g., price bargaining power of mid-supply chain entities, poor road quality or network) and opportunities (e.g., increasing consumer demand, export) at a broader scale.

Individual businesses and industries require a supply chain analysis to identify whether their industry and business performance complies with their corporate objectives or strategies and to assess their competitive advantage within the market  (Chopra, 2007). There are a number of approaches such as value chain analysis, risk analysis and criteria including efficiency, flexibility, responsiveness, agility that can be applied to analyse agrifood supply chains at an individual business level (Beamon, 1998; Chopra, 2007; Estampe et al., 2013). These insights allow improvements at an industry level to then be assessed.

The purpose of this report is to understand and map the supply chain models that exist in the Qld Sheep and goat meat industry. This will provide a base to develop information and feedback to government and  industry to address identified problems and prospects. The underlying aim of this research and subsequent policy advice is to help producers within the industry increase their financial returns and contribute to economic growth in sheep and goat producing communities.

This study analyses the sheep meat and goat meat supply chain in an effort to optimise agrifood distribution networks to increase the value generated within the network. This is then expected to increase the return to agriculture and its surrounding community. The scope of this study does not include an assessment of sustainability components of the sheep and goat meat  supply chains (e.g., carbon footprint, food waste mitigation), nor does this research focus on aspects which may be important for consumers of sheep and goat meat, such as traceability and food safety considerations within agrifood supply chains.  

The key aims of this report are to improve our understanding of the following:

• sheep and goat meat supply chains and classifications
• overall value change for the sheep and goat meat industry by meeting consumer demands
• limitations for industry to meet the demands of increased processing

key aspects in the domestic supply chain to provide greater confidence in investment. 

Download the report here.

 

 

 

This report should be cited as:

 

Star, M., Rolfe, J., Morrish, F.,  Lyons, B. 2021. Supply Chains of the Sheep and Goat Meat Industry Report provided to the Department of Agriculture and Fisheries.