Lamb definition to change

The SPA released the results last week that showed 83 per cent industry support for the change, after a nine-week public consultation phase was conducted across the whole sheep industry supply chain.

The SPA hoped to see the change come into affect by Spring 2019 – although producers may not see the benefit until Winter, April – July 2020.

The SPA endorsed changing the Australian lamb definition on the basis that market access risk would be minimised through the adoption of the New Zealand definition, which is outlined in the New Zealand Lamb and Mutton Carcass Classification, as ‘young sheep under 12 months of age or which do not have any permanent incisor teeth in wear’.

According to the SPA Lamb Definition Explanatory Policy Paper, the SPA also endorsed it pending “final SPA board approval is provided on the proposed regulatory framework governing the new definition as developed by the Australian Meat Industry Council (AMIC) and SPA”; that “final board approval is provided on the proposed implementation process and budgeted investment of production levies required to facilitate a change in definition”, and “a strategic plan is collaboratively developed by AMIC and SPA to achieve national regulatory harmonisation of sheepmeat marks and brands”.

SPA president Allan Piggott said, in addition to industry feedback, the board also relied on science and data in endorsing the change to a uniform industry position.

“The SPA board has endorsed an evidence-based policy position that reflects what the majority of Australian sheep producers want as a result of an in-depth and transparent public consultation process,” Mr Piggott said.

“The new definition will even the playing field against New Zealand in our export markets and provide producers with an indicator before they incur the ‘price cliff face’ of lamb being downgraded to hogget or mutton.

“The current definition means that as soon as eruption is evident, the animal becomes classed as mutton and results in a lower price.

“It costs producers nearly $10 million a year in having lamb downgraded.”

Mr Piggott said market access risk from adopting the NZ lamb definition was proven to be minimal.

“The interim report’s findings have been further verified by Meat and Livestock Australia’s (MLA) international business managers, various Australian exporters and international importers,” he said.

“Upon advice from MLA’s consumer markets insight unit, as there is no anticipated change to eating quality of the product, the likelihood of a detrimental affect on consumer preference is low.”

Mr Piggott said the next step was for SPA and industry stakeholders to work through the development of an implementation plan, given the lamb definition was currently defined in various Federal, State and industry regulations and standards, which could take about 18 months.

The lamb definition review was part of the broader ‘Fit for Purpose Language Program’ being undertaken by SPA, which aims to enable the introduction of meat and livestock specification language that strengthens the connection between consumer price signals and on-farm decision-making.

Enhanced alignment will assist in producers being paid for the product attributes that consumers value most at the dinner table.

AMIC chief executive officer Patrick Hutchinson said it would allow the eruption of up to two permanent incisor teeth, which was minor in nature, but had the potential to produce significant benefits to sheep producers, processors and customers.

“Australian lamb production, from farm to processor to retailer, has evolved significantly in the past 20 to 30 years, with significant advances in general husbandry, breeding, nutrition, animal welfare, processing techniques, ageing of product and refrigeration technology,” Mr Hutchinson said.

“This has allowed the Australian red meat industry to produce higher quality lamb more consistently across seasons and from year to year.

“Despite this, the definition used to describe “what a lamb is” has not changed since at least the mid-1900s, resulting in high-quality sheep meat being forced to be ‘down-graded’ from lamb to hogget or mutton.

“This can result in a significant drop in the willingness of the consumer to purchase – despite no discernible difference in quality or taste – which flows back to lower returns for the processor, and a lower price offered to the farmer.

“AMIC looks forward to working with SPA on the implementation process of the proposed change to the lamb definition, and to bringing the benefits of this change to lamb producers, processors and consumers.”

WAFarmers executive officer Kim Haywood said WA led over the hook trading with the Lamb Board in the early 1970s and it was ramped up with the Sheep Meat Council (SMC) in the early 2000s.

“We realised one of the most important things was the change in definition,” Ms Haywood said.

“We have been lobbying hard and it’s taken 14 years but we have a good outcome.”

“More than 80pc of responders have come out and supported the change and we would like to see it happen ASAP.

“We need WA processors to push it so bureaucracy doesn’t hold it up – to keep the pressure on councils to ensure a speedy process to change.

“The longer it is delayed we have an uneven playing field with competitors.”

Ms Haywood said research had already been done in the early 2000s to show that changing the definition of a lamb doesn’t change the taste of its meat.

“We are absolutely sure that there would be no negative meat quality changes,” she said.

She said that lamb finishers would have more confidence with the change.

“At the moment if one in a pen (at the saleyards) breaks it’s permanent incisor the whole pen is downgraded,” she said.

“This is at a time when processors are desperate for lamb.

“It will bring significant benefits and we don’t want it stalled.”

Pastoralists and Graziers Association of WA (PGA) Livestock Committee chairman Chris Patmore said it was a “welcome change” that had been decades in the making.

“The PGA has been at the forefront of this push for change for the past 20 years,” Mr Patmore said.

He said “a lot of work had been done by quite a few people”, including David Boyle who represented the PGA on the SMC for many years.

“It is going to take a further 18 months before it comes into fruition,” he said.

“The budget for it and the implementation plan will have to be approved by the SPA board and then State and Territory governments will need to change the definition in their regulations and standards.

“Wheels turn slowly with government.

“While it is expected to be completed by spring 2019 it will be winter 2020 before producers see the benefits from it because lambs drop their teeth from April to July.”

Mr Boyle, from York, said a lot of producers would be happy with the decision to change the lamb definition.

“The main benefit is that it will give greater confidence in the lamb industry, especially for those buying lambs that require finishing off,” Mr Boyle said.

“You can buy lambs with more confidence when you are not sure of their age, to fatten up and get a better price.”

Mr Boyle said there was a “cliff in the price when a lamb loses a tooth”.

“You can lose $40-$60 overnight,” he said.

Mr Boyle said WA had been fortunate to have had the support of the processors in pushing for this change over the years – which have suffered significant loses each year from the downgrading of lambs due to the definition.

Stud Merino Breeders’ Association of WA (SMBAWA) president Wayne Button said the announcement of the policy change by SPA was “fantastic for the industry”.

“It has been a long time coming,” Mr Button said.

“We tried to get this in many years ago.

“We are very much in favour as it gives our members many benefits.

“Store buyers can operate a bit longer and we can also get a bit more wool off the lambs while they put on a bit more weight.

“The risk for getting caught out when taking lambs to the saleyards will be much less.”

Mr Button said he hoped that the change would be implemented as quickly as possible.

SMBAWA member Ray Lewis, Wickepin, said he supported the change which should have been done years ago.”

“Our clientele will get a better deal,” Mr Lewis said.

“We’ve been losing 5-10pc when they lose teeth.”

He said the change would give lamb producers an extra two to three weeks to put on better weights and would enable increased profits for producers.

“It is a good move and it will be better for exporters and producers,” he said.

Shane Edwards, Quairading, said he was involved in the public submission process with the SMBAWA, which was carried out in October and November last year.

“We did quite a bit of background work to get the submission in,” Mr Edwards said.

“There was a pleasing amount of submissions and it was a worthwhile exercise.”

Mr Edwards said that “all the way through” the supply chain there would be benefits in the change.

He said 20 years ago specialist prime lamb producers wouldn’t have seen the benefits, but as time has gone on they have recognised the merit of it.

Part of the SMBAWA submission was research conducted in the early 2000s where testing was undertaken to determine the meat eating quality of Merino lambs, first-cross and second-cross lambs.

“The result was that there was no eating difference between early stage hoggets and lambs,” he said.

Mr Edwards put the success of the change down to the support of the processors who “finally made it happen” – citing the likes of Fletchers International, WAMMCO, and V&V Walsh as major supporters who helped drive the change over the past decade.

WAMMCO chief executive officer Coll McRury said WA had a huge influence on the change in lamb definition from a combination of producers and processors, who were able to gain support from Eastern States where there had been opposition in the past.

“Ever since I came to WAMMCO we have tried to get the change but couldn’t get over the line,” Mr McRury said.

“It has been such a disadvantage to our farmers compared to New Zealand.

“It is one of those things that you have to stick at and they’ve finally come to our way of thinking.”

Mr McRury said the concern had been at the critical time during late winter, early spring, when most lambs across the country have been killed – but there’s still about one million lambs in that late stage where its uncertain if they are a hogget.

“It has cost about $50 per head when a lamb is downgraded to a hogget, which is a huge loss in terms of farmer return,” he said.

“The change will help us in a period of tight supply – when you have the change over from lamb to hogget.

“It gives us a small window of opportunity to put high quality lamb into the market – which could be up to $2 difference per kg on a 25-26kg lamb.

“At the moment we buy some lambs knowing that there is a risk and we have to be careful, but this will allow more lambs to come into that window.

“It will provide more flexibility for all parties involved.”

Mr McRury said WA producers shouldn’t underestimate their ability to make change in the industry.