AUSTRALIA’S red meat industry could lose independent board-level input on traceability issues with the integration of the Integrity Systems Company into Meat & Livestock Australia, according to former MLA and ISC director Andrew Michael.
MLA managing director Michael Crowley confirmed today that the Integrity Systems Co is being integrated into MLA as a core business unit under a single operating model, having operated independently for some years.
The ISC was established in 2016 as a subsidiary of MLA to manage the key Australian red meat traceability, food safety, and animal welfare programs – Livestock Production Assurance, the National Vendor Declaration and the National Livestock Identification System.
The most recent ISC board included MLA board members Tess Herbert (ISC chair), Russell Lethbridge and John Lloyd (MLA chair), and independent members Dr Kat Giles and Belinda Vassallo, appointed in 2023.
Sheep Central was told that the two ISC directors who were not MLA board members – Dr Kat Giles and Belinda Vassallo – finished in March this year.
Sheep Central was also told there will be no changes to the existing ISC programs, or to ISC leadership groups or committees below the board, apart from employees that will become part of MLA divisions, while continuing their ISC functions and Mr Crowley said importantly, producers and industry stakeholders will see no change.
“It’s business as usual.
“There will be a continued focus on the high-integrity programs, traceability, livestock assurance and engagement that ISC is renowned for, under the ongoing leadership of Jo Quigley,” he said.
Independent directors understood need for traceability
However, Andrew Michael, who was an MLA and ISC director from 2017 to 2023, said it was his impression that the livestock industry wanted the independent ISC directors.
He said the independent directors, by not being tied to the MLA board, could be “open-minded and transparent” about industry traceability issues. With the red meat industry moving into digitally based traceability, Ms Vassallo offered insights and guidance on information technology and traceability systems external to MLA and independent of red meat industry interests, and Dr Giles was a “perfect candidate” because of her EU free trade agreement work and meat traceability experience, Mr Michael said.
“The combination of the two gave totally different insights to MLA because they were not sitting on both boards,” he said.
“This move means there will be no independent oversight once it is under the one umbrella.”
“ISC has to be part of MLA, but it needs that independence, and it was driven by the livestock industry to have those two independent directors.”
Mr Michael has been actively seeking increased traceability capability around sheep pain relief and mulesing through the eNVD.
“In my time on the ISC board, the two independent directors fully understood the importance of traceability for pain relief and mulesing and the importance of this for the EU-Australia Free Trade Agreement.
“Now the independence, in having someone that is not constrained by MLA and the bodies that sit under or within it, has been lost.”
Mr Michael also believes that sheep meat industry audit functions should be independent of MLA, as they were when ISC was a separate body, in the same way that auditing of the wool industry’s National Wool Declaration is done by the Australian Wool Exchange, independent of the levy-funded Australian Wool Innovation.
Mr Crowley said the integration is aimed at delivering on the MLA 2030 Strategy by enabling better alignment and opportunities to work together on shared outcomes for the benefit of the sector.
“This change will lead to improved customer service, strategy execution and program delivery to address industry priorities,” he said.
Sheep Central was told MLA and ISC teams were notified of the changes last week, with full integration to take place over the coming months. Mr Crowley has not said what prompted the move to integration, who made the decision or whether it was supported by industry.
Sheep Central has sought comment from Sheep Producers Australia, Cattle Australia and the Red Meat Advisory Council.
Good decision Michael Crowley. Our members are concerned about the waste in ISC and getting rid of the directors is a good start at reducing costs. Now tackle the audits – they are not needed.
Australian Cattle Industry Council