Industry taskforce will develop strategies to enhance meat processing sector

12/8/02
The State Government will establish a meat industry taskforce to develop strategies to address the long-term future of the meat processing sector.
The taskforce will examine processing costs, workers' compensation, markets for processed meat and other strategies to ensure the long-term future of the meat processing industry.
Key meat processors, the National Meat Association, the Australasian Meat Industry Employees' Union and the Department of Agriculture will comprise the taskforce.
Agriculture Minister Kim Chance said the move had arisen as a result of a review of the State's live export and processing sector by the Department of Agriculture.
The department worked with key stakeholders to assess a study released last year by the Queensland Department of Primary Industries (QDPI) on the relative benefits of the beef processing and live cattle export sectors.
The review of the Queensland report was subsequently expanded to include similar issues in the processed sheep meat industry.
Mr Chance said the WA beef industry had experienced strong export demand since 1997, although there had been a decline in export prices recently. Cattle numbers had increased from 1.8 million in the late 1900s to over two million in 2001.
"The value of production is almost $450million and cattle producers have experienced a substantial improvement in prices and higher profitability," the Minister said.
"With promising export opportunities, the industry has the scope to build cattle turnoff on a sustainable basis and increase exports of both live and processed beef.
"Similar opportunities exist to build sheep numbers as current demand from live shippers and processors exceeds supply."
Mr Chance said while Government restraints on live exports were not recommended, initiatives directed towards achieving an improved competitive position for the meat processing sector were recommended.
"With low throughputs and relatively high labour costs it is difficult for WA abattoirs to compete with the live market in the export of meat," he said.
"The costs associated with the labour-intensive processing sector will continue to be a critical factor in the industry's competitiveness."
Mr Chance said industry should be encouraged to develop highly differentiated meat products, with supporting production systems to achieve higher prices and better margins.
"As a result of this review, action aimed at fostering the meat processing sector will also be reflected in the Department of Agriculture's future project priorities," he said.
Department action will include the following:

• re-focus research in this area to specifically address seasonal supply variability, which is a key limiting factor in the development of the meat export processing sector;

• increase investment in projects aimed at increasing the sustainable carrying capacity of beef enterprises in the pastoral regions and northern agriculture area;

• partner with the sheep production and processing industries to identify opportunities to increase sheep numbers;

• intensify research and development of finishing cattle and sheep by grain lot feeding and pasture-based systems; and

• continue to support processors to establish quality assurance and product integrity initiatives aimed at improving supply chain agreements and integrating the production and marketing of livestock.