A study commissioned by Western Australia’s Department of Agriculture and Food’s Northern Beef Futures project, has examined future supply chain models to grow the State’s beef industry.

A presention by Ernst and Young to this week’s Kimberley Economic Development Forum looked at common factors that have been critical to the success of several global agrifood industry growth models.

The study looked at Brazil’s and Queensland’s beef industries, WA grains, Tasmanian dairy products, Ireland’s dairy sector and New Zealand’s wine industry.

“The critical success factors common across the case studies include strong and united industry leadership, government policy and project support of industry leadership. WA’s northern beef industry,” DAFWA New Markets, New Supply Chains manager Daniel Marshall said.

“Others included fact-based industry information and performance baselines, industry collaboration combined with branding, and increased forward integration with supply chain partners.”

The Innovative Business Models for Value Creation in the WA Beef Sector study, presented at the forum by EY, also outlined four high-level WA beef supply chain scenarios for consideration by WA’s northern beef supply chain and investors.

The models and scenarios developed by EY have the potential to offer the local beef industry increased value growth, innovation and international export competitiveness. They were:

1. Producer collaboration, where producers work together to increase scale, market power and forward integration, and value add options.
2. Digital supply chains, to drive more direct supply chain models with real-time performance improvement information, sustainability assurance and traceability.
3. Investment by the end-customer, where there is an alignment of incentives and objectives between the end-customer/investor, processor and producer group, and
4. Co-opetition, where WA beef industry participants work collaboratively to improve their global export competiveness.

Mr Marshall said the scenarios offered industry participants insight into how changes to their businesses or interactions with supply chain partners could improve returns and increase sustainability.

“The models combine global best-practice, with potential application to the northern beef industry in WA,” he said.

Mr Marshall encouraged feedback and interest from willing and motivated stakeholders to progress discussions on their preferred scenarios, with the goal to support WA beef businesses piloting new approaches and business models.

The department’s Northern Beef Futures project is made possible by $15 million State Government Royalties for Regions investment.

Source: DAFWA Northern Beef Futures project