Noosa beef local food value chain project reference group meeting 1

Noosa Beef & Local

Food

Project Reference Group Meeting 1

Planning for

Future Farming

Systems

• How are we positioned to take

advantage of trends?

Queensland Food Value Chain

Soils &

water Interdependencies

in the food value

chain

Natural

resource

base

Genetics:

plant &

animal

Pest &

diseaseHarvest &

Post harvest

Consumer demands for healthy,

fresh and extended life ingredients and foods

Crop &

animal

systems

Market &

consumer

behaviour

Nutrition

& health

Material

science

Process

Eng.

Industry

Sectors

Health

Retail & Service

Manufacturing

Primary

Production

Environment

Processing

Agencies

Qld Health

Employment &

Industry

Develop.

QPI&F

Farm fence

Food

safety

Preservation

Food

chemistry

Introductions

• Who you are

• What your experience is in the local food or beef supply chain

• How you participate currently

Outline of Meeting

• Project objectives and sustainable value chain diagnostic process

• Quick overview of what previous research is telling us – identify any gaps

• Input into branding & certification options

• Scoping various grazing management systems /models & identify best bet scenarios (systems and models)

• Reviewing draft interview instruments for various segments of value chain

• Identify existing networks and networking opportunities to extend

• 'Local food' Value chain mapping activity (first draft)

Objectives : Beef Supply Chain

• To research and produce an action plan on how to increase sustainable production from grazing lands

• Investigate opportunities & constraints to local processing and distribution of sustainable pasture fed beef

• Identify mechanisms to improve the profitability of the beef value chain to producers

• Review the potential to build local brand recognition in order to increase consumption and value to the producer

Objectives: Getting Local Produce to Market

• To research local food supply chains

• Investigate how to improve the flow of information

and material along existing values chains

• To assess opportunities for adding additional value to

the shire-wide local food network

• To assess the potential for shared distribution systems,

food hubs, grower cooperatives and the like.

Project Schedule (revised)24/07/15 Start-up consultation with Country Noosa & SCVA Stage 1

4/09/15 Review of Background Information & develop draft questions for interviews commence 2 SVCA diagnostic

11/09/15 Beef Production System & Consumer Research & Consumer interviews Commenced

18/09/15 Commence cost benefit analysis - desktop review of CN Mapping , Beef Economics

4/10/15 Discuss results with reference group - Refine issues and Conduct Round 2 interviews

11/10/15 Commence Stage 3 SCVA diagnostic - Analyse data from stage 2 and produce mapping of current state of value chains – target key players for further discussion

18/10/15 Stage 4 SCVA diagnostic – ground-trothing and reporting results of SCVA

25/10/15 Produce Beef Production Action Plan

6/11/15 Produce Final report

Desired Role of Reference Group

• Establishment meeting of Reference Group

• Review Draft interview instruments

• Undertake Value Chain Mapping Exercise

• 2nd Meeting review results of consumer surveys and producer interviews to prioritise people and issues for exploration in 2nd phase interviews

• Email Discussion - draft report from Sustainable Value Chain Analysis and input into the Action Plan

• 3rd Meeting Review draft Action Plan

Questions re Objectives & Roles?

Outline of Sustainable Value Chain Analysis(Note time and resources restrict some steps in this project)

• This Sustainable Value Chain Analysis:

• Defines value creation in terms of the product attributes which affect consumer behaviour (willingness to pay and frequency of purchase);

• Identifies which activities add this value, from inputs for agricultural production to consumption/disposal of the final product;

• Evaluates the preparedness of chain to create, realise and distribute value effectively;

• Compares the environmental impact of different activities along the chain, and

• Assesses the scope for the chain to act collaboratively to create competitive advantage through both product and process innovation and improved environmental management.

Embedding the Biosphere values base

“Values-based supply chains (VBSCs) are supply chains, or wholesale, non-direct-market

channels where consumers receive information about the social, environmental, or community

values incorporated into the production of a product, or the farm or ranch producing it. This

information is preserved with the product even though the product may change several hands

between the producer and the consumer. Enterprises that participate in VBSCs (processors,

distributers, packers, shippers, wholesalers, retailers, farmers and ranchers[graziers]) have

transparent, collaborative, equitable relationships based on trust, and work together to make

sure everyone benefits, and in particular the farmers and ranchers [graziers].”

(Feenstra, Lerman & Vishere. 2012. )

Supply chains push products upstream

Value chains’ products are pulled by consumers

Framework

Key Questions the SCVA Seeks to Answer

• What are the factors influencing purchaser decisions (at business and consumer level) in local restaurants, farmers markets, second tier supermarkets and regional retail enterprises (e.g. fruit & vegetable shops, butchers)?

• What are the important factors that can drive value generation in the local food supply chain?

• Which specific food value chains offer the best opportunity for innovation to drive economic recovery from, and resilience to drought?

• What innovative/ clean technologies and sustainable production practices can be embedded in these chains to enhance value and reduce environmental impact?

• What are the best methods for achieving enabling infrastructure, behaviours and actions within the chain that enhances the adoption of these technologies and practises?

Sustainable Value Chain Analysis

• Workshop to start mapping

processes, materials and

information last section of today’s

meeting.

What Previous Research is Telling Us

• Some in the group are living and breathing ‘local food’

• Others bring broader experiences and interests

• This section of the meeting is about ensuring everyone has a general idea about trends and opportunities identified by research

If we just stand still and not look at what is coming

our way?

Local v Organic & Artisanal 2012

• Forty-seven percent of the 2,274 adults polled in the online survey said that they would be willing to pay more for fruit, vegetables, meat and cheese produced near their homes.

• Far larger share than those that said they would pay more for food without artificial ingredients (32 percent), meat made without antibiotics or hormones (30 percent) or "handmade, small-batch or artisanal and specialty foods" (20 percent).

25 year trends

• The potato was Australia’s side dish of choice in 1984 accounting for 72% of our side dish purchases. This has dropped to 39%,

• The ‘meat and three veg’ standard meal of the 1970s and 1980s has gone by the wayside

• Today you will find superfoods including kale, blueberries and sweet potato as a standard

• In 1960s mutton was the most popular source of red meat (52%)

Local Food Review 2014

• Major result was that, unlike organic food,

local food is not perceived as expensive.

• Consumers are willing to pay a premium

for local food.

• Purchase barriers are inconvenience and

lack of availability of local foods

Sunshine Coast Restaurant & Café Survey

Lean Meat is Preferred

Consumer Attitudes Towards Meat (2006)

Beef versus Chicken

Bee

f v C

hic

ken

Val

ues

Are there other Consumer or Market Trends

that we should be considering?

Ag Land Area & Employment SC

Gross Output by Primary and Resource

Industries SEQ 2001-2026 ($Millions)

0

100

200

300

400

500

600

700

800

900

1000

2001 2006 2011 2016 2021 2026

$M

illio

n

Horticulture

Intensive animal

Cropping

Grazing

Other agriculture

Forestry, fishing, mining

Trends in Value of Ag Production

Noosa Shire Gross Value of Production 1996-2006

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

20000000

1996-1997 2000/2001 2005/2006

Value of Agricultural Commodities Sunshine Coast

1996-2001

0

5000

10000

15000

20000

25000

1996-97 2000-1 1996-97 2000-1 1996-97 2000-1

Beef Beef Dairy Dairy Fruit Fruit

$1000

per

an

nu

m

Caloundra

Maroochy

Noosa

Sunshine Coast Primary Producers

Sunshine Coast Production by EVAO Range

2006

Less than

$22,500 pa.

22,500 to

less than

50,000

50,000 to

less than

100,000

100,000 to

less than

150,000

150,000 to less

than 200,000 200,000 to less than 350,000

350,000 to less than

500,000

500,000 to

less than

1,000,000

1,000,000

to less

than

2,000,000

2,000,000

or more Total

Nurseries 14 8 9 9 0 13 1 1 2 0 57

Turf - - - 3 3 3 4 - - - 13

Floriculture 7 8 6 2 4 2 - 1 - - 30

Mushrooms - - - - - 1 - 1 2 - 4

Vegetable Growing 17 16 9 4 2 14 7 4 1 2 76

Stone Fruit Growing 1 2 - 1 1 - - 1 - - 6

Berry Fruit Growing 1 2 5 8 3 5 1 6 4 2 37

Citrus fruit growing 9 1 4 2 2 - 1 - - 1 20

Other Fruit & Nuts 56 48 48 11 8 20 5 6 - 2 204

Grain/Sheep & Grain &

Grain/Beef Cattle - 1 1 - 1 - - - - - 3

Beef Cattle Farming 138 70 34 9 3 2 1 - - - 257

Dairy Cattle Farming 3 5 5 6 13 21 7 8 - - 68

Poultry Farming 1 - - - - - - 3 6 2 12

Pig Farming - - - - - - - - 1 - 1

Horse Farming 14 4 3 3 1 1 - - - - 26

Livestock Farming n.e.c. 5 - - 1 - - - - - - 6

Aquaculture 1 1 - - - - - - - - 2

Sugar Cane Growing 11 12 3 8 2 3 - - - - 39

Other Crop Growing n.e.c. 2 - 4 2 - 1 - - - - 9

Bee Keeping 5 1 3 - - - - - - - 9

Total Agriculture 285 179 134 69 43 86 27 31 16 9 879

Producer Land Holder Preferred Scenarios

Impediments to Growth of Local Value Chains(in SEQ)

• Main constraints to expansion of production for local food supply included labour, land availability (size of plot, soil, type, etc.), transport, infrastructure, funds, and access to resources.

• They were optimistic that most distribution challenges could be addressed by the facilitation of better relationships and collaboration between value-chain members rather than new infrastructure.

• There was strong support across all supply sectors surveyed for online information and an electronic trading and distribution system.

• The enthusiasm of producers and food processors for the development of an online data and a trading portal was matched by support in the food-service and manufacturing sectors

Distribution of SEQ local food and

beverage: What do consumers think?

Perceived lack of availability is a key barrier

• only 26% of local residents and 41% of past visitors agreed SEQ local food and beverage is readily available

• key barriers

• not readily available - 60%

• range of products is limited - 50%

• focus groups revealed

• do not know where to find it

• not available where I shop

Perceived Inconvenience

• I have to travel further to do so – 42%

• requires extra effort – 40%

• time-consuming – 38%

• inconvenient – 35%

0

5

10

15

20

25

A great influence Somewhat of an influence Of very little influence No influence

Influence that an efficient local distribution system

would have on local supply (SC producer survey)

Great

influenceNo

influence

Distribution Strategies

• supermarkets

• specialty stores

• farmer’s markets,

• restaurants and cafes,

• local cooperatives,

• roadside stalls and farm gates

Increase availability

• sampling

• demonstrations

• mobile showcase

Take the product to the

consumer

Establish dedicated retail outlets

Others?

Grazing Management Scenarios

1. Traditional status quo - raise cows on own property sell at saleyards

2. Small cooperative marketing and local selling - Eumundi Beef/ Tamworth Pigs/ Bonnie Beef model

3. Managed agistment/ share farming (ownership/blind) enterprise model

4. District marketing and standards group e.g Cape Grim Beef

5. Any others?

Status quo

Small Scale Cooperative Marketing

Eco-Labelling, Branding, Certification

Managed Estate/ Adgistment

• Grazing divorced from land

ownership

• Economies of scale by multiple

properties/ leases

• Potential for landscape

manmagement services built in

District Scale

Marketing

& Standards

What are the three most important things you look for on a

food label? ( SEQ Consumer Survey)

1. How to prepare

2. Price per serving

3. Region of origin (e.g. SEQ)

4. Brand marks that identify the producer

5. Local area of origin

6. Farmed/produced/caught by date

7. Nutritional information

8. Country of origin

9. Use by date

1 2 3 4 5 6 7 8 9

2%

14%

8%

9%

15%16%

22%

7%

6%

Branding of Local Food and Beverage: What

do consumers think?

• not well promoted - 68%

• information on where to find it is not available - 65%

• not clearly branded as local – 63%

• not well labelled – 56%

Insufficient marketing and distribution

• clearly marketed - 33%

• branded and easily recognisable - 22% Local residents

• 78% vs. 37% - clearly marketed as coming from SEQ

• 77% vs. 34% - branded and easily recognisable as local

Future visitors’ expectations do not match past visitors’

perceptions

Branding Strategies

Develop a staged/tiered branding strategy

• Australian, SEQ and then local

Develop clear local branding and labelling

Leverage SEQ strong, favourable and unique secondary associations

• sun, beach, fun

Others?

Traceability of SEQ local food and beverage:

What do consumers think?

Traceability is important

• I like the connection with local producers - 90%

• I know where it comes from - 90%

• it reduces food miles - 90%

Interested in learning where local food and beverage comes from

• Local residents - 70%

• Future visitors - 60%

• Past visitors - 65%

Origin of food and beverage should be clearly identified on menus

• Local residents - 81%

• Future visitors - 73%

• Past visitors - 74%

74% think information on method of production is important

Traceability Strategies

Provide information on where, when and

how (method of production)

Provide provenance information

Clearly identify the origin on menus

Provide opportunities for consumers to

interact and connect with local producers

Others?

Global Round table for

Sustainable Beef

• Walmart – America’s largest retailer

• Macdonalds

• WWF

WWF Sustainable Beef

Cattle Council – Certified Pasture Fed

• Have open access to graze pasture their entire life

• Have not been confined for the purposes of intensive feeding for production

• Are fully traceable for their entire life via NLIS;

• Are guaranteed to eat well, based on MSA; and if required:

• Are free from Hormone Growth Promotants(HGPs); and/or

• Are free from antibiotics.

Biosphere Branding

Biosphere – Appellation or Certification?

• Available to everyone in Biosphere

• Only those who meet Biosphere

Objectives

• Bestowed or Audited compliance?

Grazing BMP Certification

SEQ Sustainable Practice Frameworks

ABCD Grazing Land

Condition

Key Questions

What do consumers want? (based on results of projects)

What are the opportunities for industry development to meed this demand?

Are there digital solutions to current problems that need to be explored?

Is there a need for more research on specific topics and why is it needed?

What are the top 5 priorities in response to the above (i.e. strategies/ actions)?

Who should be involved in pursuing these priorities and opportunities for broader regional collaboration?

Only consumers can grow the pie

Collaboration delivers competitiveness that is very difficult to copy because it requires• A different mindset: thinking co-operatively

and beyond immediate suppliers and customers

• Alignment of incentives• Sharing of benefits

Why Consumers and Collaboration?

Why does this matter?

New competitive environment:

Supplier dominance has given way to retailer control

Innovation is now a core strategy of all businesses, but

If innovation is easily imitated, it only brings short-lived competitive advantage

Collaborative innovation (‘co-innovation’):

Incorporates innovations in product, process, governance, markets and raw material sourcing

Develops sustained competitive advantage

Consumer research

Objectives1) Demonstrate benefit of a fundamental focus on what different consumers value

in a product/service

2) Illustrate potential for market segmentation through product innovation

3) Determine the importance, relative and absolute, of different product attributes

4) Identify factors that influence shoppers’ purchasing decisions: V, N or W

Consumer research

• Focus groups determine the range of product attributes

affecting shopper behaviour

• Surveys used to quantify importance (absolute and/or relative)

of those different attributes

• Face-to-face with consumers – observing, discussing behavior

• Test behaviour vs attitudes

From input supply to final consumption:

Who does what, where, when and how?

Need to probe why people do what they do:

Decision-making processes (linking with information flow)

Efficient and effective (linking with relationships and consumer insight)

Mapping Material Flow

Interviews: Analysis

Convergent interviewing triangulates data from a wide range of interviews and sources of information, and constantly cycles through the data

Interviews

Selecting interview participants

1) Who will be interviewed, and in what sequence?

2) How many times will they be interviewed? Some participants will

be asked additionally to ‘ground-truth’, or validate, what the

team is hearing/has heard.

3) Beware of recommended interviews (may be biased and

contravene anonymity). You decide.

4) Include external stakeholders/experts?

Value Chain Analysis

Supply chains push products from upstream

Value chains’ products are pulled by consumers

GROW YOUR SLICE GROW THE PIE

Two strategies

X Compete on price

X Transactional relationships

X Opportunistic behaviour

Compete on value

Collaborative relationships

Commitment

More

consumers

More sales

per

consumer

Higher

price

Two requirements:

1. Focus on adding value to

target consumers

2. Strategic

alignment/collaborative

relationships with chain

partners

Value chain management roadmap

Scope for improvement everywhere but often hard to see – particularly when nobody is looking

VCA extends the line of sight, drawing chain members’ attention to improvement opportunities: an analytical tool and catalyst for change


1.Identify patient: identify chain captain and engage chain partners

2.Diagnosis: consumer insight, material and information flows and relationships

3.Cure: Identify improvement projects to add value (effectiveness) and reduce waste (efficiency)


Information flow

The creation, sharing and use of…

...strategic, tactical and operational information…

between and within firms in the chain

Relationships

Strategic alignment in objectives,

resources and incentives...

...evidence of trust, commitment and

collaboration...

...and experience of power/

dependency/ opportunism and

conflict resolution

Material Flow

Identifying the key activities...

...assessing each one’s potential to

add consumer value

Consumer insight

Who buys and why; which attributes

add value in the eyes of consumers

Mapping Material Flow

Not to this level of detail in this project

Chain of Fortune: base processesLarge yellow post-its = process steps

Chain of Fortune: processes + companiesLarge yellow post-its = process steps

Small blue post-its = companies

Chain of Fortune: base processesLarge yellow post-its = process steps

• “It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change”

Charles Darwin

Chain of Fortune: processes + companiesLarge yellow post-its = process steps


Chain of Fortune: processes+companies+info+issuesLarge yellow post-its = process steps


Small yellow post-its = information

Small pink post-its = key issues

Successful improvement projects

• Five year plans start with small tangible steps. Pilots are attractive.

• Ongoing monitoring of consumers’ reaction contributes to

measuring outcomes and maintains commitment

• Help participants to see potential to apply principles more widely:

different products, customers and markets

Food Distribution Hub

Noosa beef local food value chain project reference group meeting 1

Food

Transcript of Noosa beef local food value chain project reference group meeting 1