Industry Trends Food Service Challenge of the Value Chain

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Industry Trends - Food Service Challenge of the
Value Chain

• Presented by
• Tony Buckley
• Director
• mybutcher

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What constitutes value?

• What is value to you?
• Is there value in

In people
business
Lifestyle/Family
In sustainability
harmony
???

• What is your position?
• Are you a commodity?
• or
• Are you unique/special?

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The Supply Chain vs The Value Chain
Who will win?
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Sustainable Food and Wine Value Chains

• ANDREW FEARNE
• Professor of Food Marketing Supply Chain
  Management
• 2008 "Thinker-in-Residency" with the South
  Australian Government
• Andrew is the author of the discussion paper
  titled Sustainable Food and Wine value chains

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Sustainable Food and Wine Value Chains

• The Challenge
• A combination of external and internal strategic
  challenges is adversely impacting SA food and
  wine
• Declining profitability of businesses at all
  stages of chains and degradation of the food/wine
  system.
• my strong impression is that the majority of SA
  businesses operating in the food and wine
  industry are a very long way from best practice.
• in summary, the status quo is clearly
  unsustainable.

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Sustainable Food and Wine Value Chains

• Value Chains the locus of change
• customer and consumer preferences
• information flow and relationships between
  organisations in the value chain

• Strategic Direction
• in essence, the starting point on the journey
  to sustainable competitive advantage is the
  change in the mindset that places consumers
  first.

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Sustainable Food and Wine Value Chains

• Outline Recommendations
• Market intelligence and foresight
• Capability and capacity building
• Collaborative business models
• Supporting co-innovation through community
  engagement
• Moving from a food plan to a food policy
• Strategic planning and industry development

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Supply Chain vs Value Chain
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Supply Chain vs Value Chain
Key Differences
Supply Chain
Value Chain
Transactional
Information
Behaviour and attitude
arms length
Relationships
Collaborative
costs plus
Financial
Value Added
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Value Chain Management VCM

• The key focus elements for VCM success are
• Collaboration
• Benefits must be shared by the whole of chain
• Target distinct consumer segments

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Value Chain Management VCM

• The key focus enables
• Strategic alignment
• Supply chain transparency
• Quick low cost of information

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Spear Creek Dorper Lamb Case Study

• Spear Creek Dorper Lambs are grown on the edge
  of the Flinders Ranges in the rangelands of South
  Australia. They are naturally seasoned in the
  unique natural environment on saltbush and native
  grasses.
• Benefits of Spear Creek Dorper Lamb
• Dorper sheep do not need to be shorn, crutched or
  mulesed giving the sheep a low stress
  environment.
• Free from all chemicals associated with wool
  production.
• Superior flavour due to unique environment.
• Open range grazing. No feedlot finishing
  required.

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Spear Creek Dorper Lamb Case Study

• Jamie McTaggert and Scott Herde have cast aside
  generations of farming traditions to run viable
  pastoral businesses.

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Spear Creek Dorper Lamb Case Study

• The challenge
• Had little control of their product once it left
  the farm gate.
• Low recognition for their product by industry
  through breeding and other benefits the product
  had.
• They could not control their destiny.
• The opportunity
• To create and control the breed of their product
  through branding.

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Spear Creek Dorper Lamb Case Study

• The Plan
• Control their own marketing and identifying key
  stakeholders in the value chain.
• Direct distribution via processing room, boning
  room and retailers (butchers, hotels and
  restaurants).

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Spear Creek Dorper Lamb Case Study

• Two Wells Processors
• Free access to see their product and yields
• mybutcher
• Free access to packing of product - direct
  feedback
• Access to food service
• Marketing support and advice
• Introduction to retailers

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Spear Creek Dorper Lamb Case Study
Industry News and Editorials
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Spear Creek Dorper Lamb Case Study

• Ticking the boxes
• The Breed Dorper Lamb
• Sustainability Benefits
• Low stress animal husbandry practices
• Chemical Free organic practices
• Naturally seasoned
• Low fat, large muscling, large weights
• Tender high eating quality
• High return Value

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mybutcher the battle for the consumer plate

• Strong commitment to innovation
• Spear Creek Lamb
• Aged steak programme
• Moisture infusion
• Speed roast (drunken lamb)
• Lamb Yiros Award winning
• 70 of all product is valued added.
• Care harmony

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The Future

• meatright
• Producing income stream for fundraising groups
  while meating community need for affordable
  quality fundraising.
• Flavourit
• Food ingredient distributor, specialising in the
  meat industry
• mybutcher expansion
• local supermarket supply
• interstate
• MYB international
• Development of export markets

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Summary

• Simply ask for information flow from your next
  link in the chain.