ONLY 20 percent of beef and lamb carcases deliver 80 percent of their overall value.

That ratio is expected to change over the next few years, as a range of stakeholders are playing a role in boosting the profitability of the Australian red meat industry and driving full carcase utilisation.

Meat & Livestock Australia’s food innovation project manager Angelica Pickup has compiled a list of new products that are changing the way the industry generates greater value from red meat.

Angelica will discuss MLA’s partner products – at various stages of research and development –at this year’s MLA Updates event in Perth, WA.

Kilcoy Nutraceuticals – Red meat ‘fifth quarter’ opportunities come to life

Under the banner of Kilcoy Nutrition, MLA and Kilcoy Global Foods recently developed and launched a range of beef organ food supplements, in capsule form (see image above). Kilcoy Nutrition markets beef organs as the most nutrient-dense component of the animal.

The team built and tested business model innovations to identify and establish key resources and relationships for an Australian beef nutraceutical supply chain. The research behind this project demonstrated multiple value chains for ‘fifth quarter’ ingredients, i.e. the usually undervalued fifth quarter of beef carcases.

While third party rendering can attract a price of $0.20/kg, a wholesale frozen supply chain can generate 5–15x greater value, and a dried ingredient value chain can deliver value multipliers between 75–100x the rendered product.

Read more about Kilcoy Nutrition products.

Startupbootcamp/TIIGA – Gut healthy hydration

Valued at US$2 billion in 2021 and expected to continue growing, the global collagen supplements market has proven to be a key opportunity to target consumers’ increasing focus on healthy lifestyles.

The combined market for collagen and gut health supplements is an emerging segment gaining traction, with consumers seeking products with multifunctional health benefits.

Startupbootcamp (SBC) Australia, in conjunction with TIIGA, is developing a novel collagen and gut health infused powder sachet that is added to liquid to create an on-the-go beverage.

The project builds on recent MLA-Organic Technology Holdings investments that developed bovine/ovine collagen powder (see: Validation, market desirability and useability of ovine collagen – phase one and Viability and feasibility of ovine collagen – phase two).

By understanding the optimal ingredient combination of fibre (from baobab fruit) and Australian collagen, we can deliver specific nutritional claims and further leverage Australian-sourced ingredients for enhanced health and wellness benefits.

This project will look to formulate a range of ‘beauty and inner glow health drinks’, but also provide a solid foundation for making informed decisions about product naming, packaging, and marketing conventions to maximise market penetration and consumer acceptance for this blend of Australian-derived functional ingredients.

At the same time, this project will add to the case study for wider industry that showcases the inclusion of collagen as a highly valuable and incremental alternative to leather production for hides/skins.

Highlands Natural – What’s in a bone?

The bones of beef carcases can make up to 20pc of animals’ liveweight and are typically treated as a by-product or waste. Bones are usually sent to renderers, where they’re converted into tallow and bone meal.

Further value adding opportunities for bones are typically seen in the production of bone broths, where additional ingredients can be added to make a flavourful liquid.

This ongoing project seeks to identify the differences in amino acid profiles, collagen content and mineral content in the different bones and joints of the animal to determine a hierarchy of nutritional value which in turn could affect which bones and joints to prioritise when processing and preparing bones for broth and other products.

MLA has been actively exploring red meat inputs as an ingredient, where bone broth was identified as an opportunity to utilise low value red meat products as an ingredient in the wider food industry as well as research into bone by-product processing (see: Review of meat bone by product processing).

This will aim to grow awareness among consumers worldwide regarding the numerous, scientifically backed health benefits associated with broth consumption.

In June, the average price of 50pc MBM (Meat Bone Meal) was $0.52/kg (MLA Co products report).

Converting this to a nutritionally dense health and wellness product could generate up to $40/kg, which would represent a 77x (exclusive of production, packaging and any associated marketing costs) value multiplier.

• Producers can see and hear more about these products at the annual MLA Updates event in Perth, WA, on Thursday, 10 October.