A feedback system to promote integration, sharing of information and profitability and sustainability of all beef supply chain sectors

Abstract

A joint Beef Industry Supply Chain Systems Project between the Queensland Government and Nolan Meats Pty Ltd was developed to foster improved supply chain relationships between processors and suppliers. The project focus was to take advantage of value adding opportunities and improved efficiencies by implementing an innovative feedback system. An electronic identification system (EID) for source verification, quality assurance, and the collection and transfer of animal performance information was evaluated. Sixty-six producers supplied 1,544 cattle that were individually identified with EID tags at feedlot induction, and their performance traced through to slaughter. Data collected showed that the top 10% of animals made a profit of $68/head compared with the bottom 10% that made a loss of $142/head. Variation in the data collected highlighted the opportunities to improve efficiencies and returns for both the processor and the suppliers. The processor could identify those suppliers with high market compliance cattle. In turn, suppliers received feedback information identifying the type of animals they needed to produce to attract the highest returns. This project demonstrated that better communication and recognition of high performing suppliers will enhance the development of supply chains that will increase the efficiency and competitiveness of the industry.