Australia’s goat meat industry stands on the brink of transformation, thanks to strategic interventions identified in a new report. The study, titled “Developing a sustainable high-value market driven goat supply chain,” was funded by MLA Donor Company (MDC) and led by Greenleaf Enterprises’ Dr Janine Teese and Ken Bryan, in collaboration with Cedar Meats. It aims to understand both international and domestic demand for goat meat products, as well as the technical trade barriers for new and existing markets.
The report’s findings are set to inform research and development (R&D) investment priorities and industry development activities by the private sector, industry, and governmental organisations. Dr Teese highlights that goats are increasingly becoming a part of rangeland production systems, alongside beef and/or sheep, as a strategy for income diversification and land management.
Moving Beyond ‘Boom and Bust’ Cycles
A key finding of the report is the potential for the goat industry to transition from a commodity supply chain to a market-oriented, consumer-focused value chain. This shift requires investment in R&D and marketing across the entire supply chain. The report suggests that there is an opportunity for a significant uplift in the export value of goat meat each year, potentially adding $100 million to $140 million annually, based on current and projected export volumes.
Export Opportunities and Challenges
Currently, Australian goat meat is predominantly exported frozen, either as whole carcases or six-way cut carcase pieces. The United States remains the largest market, with growing demand in South Korea and China in 2023. However, an irregular supply base has hindered the ability of processors to sign more lucrative, long-term supply contracts and develop high-margin markets. This has led to cycles of oversupply, low prices, and reliance on spot market buyers.
The report identifies the need for innovative supply solutions combined with new product and market development to break these cycles. Factors such as a lack of goat-dedicated processing technology, high processing costs, workplace health and safety issues, and limited market development have maintained the status quo of selling frozen carcases.
Recommendations for a Sustainable Future
To develop a sustainable, high-value, market-driven supply chain, the report recommends aligning the supply chain with consumers’ needs and innovating in processing. Future R&D should focus on uplifting the entire supply chain, from on-farm solutions to dedicated goat processing technology, branding, and eating quality metrics.
Key recommendations include developing solutions to ensure consistent goat supply throughout the year, enabling processors to secure long-term contracts. This could involve forward contracting producer consignments, coordinating mustering times, and supplementary feeding strategies.
Investment in R&D for automating the goat processing sector is also recommended, enabling more precise cubing and slicing of carcases. Additionally, developing a flavour profile system linked to carcase attributes and eating quality will help deliver a consistent eating experience, tailored to consumers’ cooking methods and recipes.
