Australia highlights red meat value-added opportunity

By Aidan Fortune contact

- Last updated on GMT

Red meat success in Australian delis
Value-added in supermarket and convenience is proving to be a successful category for the Australian red meat industry, generating millions in additional profit for the sector.

Meat & Livestock Australia (MLA), through its CoMarketing Program and MLA Donor Company (MDC) High Value Food Frontiers Program, has helped processors seek out new usages and occasions for red meat and develop new product initiatives for supermarkets.

MLA manager of high value food frontiers Michael Lee said there was scope for red meat to capture greater market share in the growing convenience segment – particularly supermarket delicatessens, which are traditionally dominated by pork and chicken value-added products.

“Australian beef has been taking a bite out of the lucrative barbecue chicken market since the launch of ‘grab-and-go’ traditional hot roast beef and corned beef products in Woolworths supermarkets in 2016,”​ he said. “This project was the result of a collaboration between MDC, Teys Australia and the Australian Meat Processor Corporation (AMPC) … and the hot, ready-to-eat ‘Cedric Walter’ brand beef products have now been rolled out to 900 Woolworths stores nationally.”

He said this new channel was worth up to AUS$5.5m to the domestic red meat sector.

“Analysis of the Woolworths/Teys lines on the market has determined that the annual use of 800 tonnes of lesser-value outside flats lifts the value of 2.3 million head of cattle, delivering $5.5m per year in new profit for the red meat industry, of which close to 20% is returned to producers and processor suppliers.

“Teys and Woolworths have since launched line extensions, at no cost to MLA or producers, including hot lamb roast and beef meatballs, also sold in the hot box delicatessen cabinet.”

Lee added that analysis of the performance of new, value-added red meat products demonstrated the many opportunities for the industry and the potential for growth.

“Research commissioned by MLA in 2016 showed the opportunity in the deli space is immense, with the red meat share sitting at 2%,”​ he said. “If red meat was to increase market share by just 1%, the benefit to the red meat industry in the domestic deli market alone would be approximately $10 million.”

Related topics: Australia, Retail, Lamb, Beef

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