BEEF processors have instigated the comprehensive “due diligence’ investigation into the introduction of objective carcase measurement (OCM) technology they say is desperately needed.
Processors are adamant they see OCM as paramount to the future of their industry but say it must be rolled out on a basis where the pros and cons of projects are fully understood, lest it become yet another regulatory burden.
Consultants Ernst and Young will provide analysis and recommendations on whether investment in Dual Energy X-ray Absorptiometry (DEXA) technology is a solid operational and commercial decision for processors.
They have been commissioned by peak processor group the Australian Meat Industry Council (AMIC) and the red meat industry’s research and development arm the Australian Meat Processor Corporation (AMPC).
The move is in response to Meat and Livestock Australia’s plan to pursue a $150 million industry-wide installation of DEXA, a device which can accurately differentiate meat from bone
AMIC chairman Lachie Hart said just what sort of financial costs processors would wear under the plan were not known.
“Plants could be up for a multimillion dollar invoice with regards to implementation but capital cost is just one thing.
“The day-to-day running of the technology, how the costs of providing feedback to the producer and the education needed to make use of that feedback will be covered - these things have not yet been nutted out.
“A capital investment of this scale that is without appropriate governance, consultation and feasibility assessments could encumber an industry already facing unprecedented cost pressures related to regulation, utilities, livestock and labour.”
The processing sector is looking at a number of OCM projects alongside MLA’s “Project 150”, including automated boning rooms, alternate sensing technology and research into digital cameras which effectively replace the human grader’s eye.
“There is plenty happening in this space because we see it as vital to our industry’s future but commercial diligence is required every step of the way,” Mr Hart said.
The review will evaluate all technical, financial, implementation and governance aspects of DEXA, along with looking at the value the processing sector can expect from potential improvements to supply chain relationships and the perception of transparency.
The findings of the report should be made public in April.