MLA MD Michael Crowley.
Beef Central discussed with MLA MD Michael Crowley the ongoing challenges in transitioning Australia’s red meat industry to a Value Based Marketing payment model, the recent abandonment of CN30, and MLA’s new five-year strategic plan for enhancing consumer communication.
New Strategic Plan: Key Insights
Michael, can you share the highlights of MLA’s new five-year strategic plan?
I’m thrilled to present the MLA strategic plan extending to 2030. The core opportunities lie in driving demand, aligning marketing strategies with market access, and leveraging insights to shape the demand landscape both domestically and abroad.
A major focus is on implementing Value Based Marketing, linking MSA, objective measurements, and feedback systems right from genetics to capture value throughout the supply chain.
We also plan to introduce a multi-breed genetic evaluation aimed at benefiting commercial producers across cattle and sheep. By accurately relaying market signals through Value Based Marketing, we can apply selection pressure on the most productive traits.
Addressing Barriers to Value Based Marketing
Value Based Marketing is central to your vision. What are the main challenges preventing its wider adoption?
While Value Based Marketing isn’t a new concept, the industry now has both the feedback frameworks and data capabilities in place. The MSA model has successfully demonstrated how eating quality can enhance brand value. Our challenge is to capitalize on that momentum for broader value creation.
Investment traditionally focused on individual supply chain components rather than optimizing value across the entire chain. A paradigm shift towards recognizing each participant’s role is vital for achieving the desired cultural change.
Next Steps for Value Based Marketing
What steps are necessary for advancing VBM?
Collaboration is key. We need producers, processors, brand owners, and researchers to work together in designing actionable programs tailored to specific supply chains. This collaborative approach minimizes risks associated with early adoption and ensures that we address the unique commercial drivers pertinent to each chain.
Moving Away from Carbon Neutral 2030
Why did MLA decide to abandon the CN30 target?
CN30 began as an aspirational target. After extensive consultations, we found mixed opinions within the industry regarding its feasibility. Achieving carbon neutrality by 2030 was contingent on considerable investment and the right policies, and we are currently not on track.
The decision allows us to align with national goals of achieving net-zero by 2050, facilitating further innovation and investments in methane efficiency and sustainability practices.
Continuing Research and Development
Will MLA continue its research programs related to CN30?
Yes, we will maintain our research programs, especially those focused on methane as a genetic trait in production. Moreover, we have promising developments in feed supplements designed to reduce methane emissions, as well as advancements in pasture management that store more soil carbon.
Consumer Communication Strategies
What communication initiatives are being prioritized in the new strategic plan?
Our communications strategy is set to elevate the narrative around sustainability, animal welfare, and the role of red meat in nutritious diets. We plan to enhance how we convey our message to consumers and the community through platforms such as Australian Good Meat.
Impact of the Cattle Transaction Levy Review
What implications might the Cattle Australia levy review have for MLA?
Any review will be led by the representative organizations, and we are prepared to support Cattle Australia in this endeavor. The outcome may influence MLA’s future funding and its role in marketing and research initiatives.
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