Who will own DEXA data?

A second issues paper on the DEXA proposal – written as part of an independent review spearheaded by EY’s agribusiness expert and former federal Agriculture Department head Andrew Metcalfe - was ventilated to media this week

Mr Metcalfe’s work is evaluating key aspects of MLA’s proposal, of December last year, to invest $150 million to install DEXA in about 90 AUS-MEAT registered processing plants, including the financial, technical and governance arrangements.

His work was commissioned in February to provide objective advice to the Australian Meat Processor Corporation (AMPC) and the Australian Meat Industry Council (AMIC).

Mr Metcalfe’s professional background includes 34 years working in high levels of government including as a former Agriculture Department head and a lengthy stint at the Immigration Department.

“I know how important this work is for the future of the industry,” he told the media briefing in Sydney.

Mr Metcalfe is seeking feedback on the issues paper which can be found on the AMPC website ahead of providing a final report by the end of this month.

http://www.ampc.com.au/uploads/pdf/independent-review/DEXA-Independent-Review-Issues-Paper-2-FINAL.pdf

He said the Australian red meat industry had arguably become Australia’s largest manufacturing industry and supported many towns and regional areas and had cattle producers “at its heart”.

Mr Metcalfe said the industry employed 200,000 Australians in producing and processing, and other supply chain segments, with many jobs located in rural and regional areas and also exported about 70 per cent of its product.

“Technology and the application of technology is what this review is about,” he said.

Mr Metcalfe said who owns the large volume of data that would be obtained from using DEXA, what uses that information can be applied to and the underlying governance structure, were all questions under examination in the issues paper.

“Largely it’s the data that’s derived from the information obtained from the x-ray analysis of the carcases,” he said.

“The DEXA x-ray analysis provides accurate measurements, provided the machine is calibrated properly, of the bone, meat and fat content of the carcase.

“Lean meat yield is only one aspect of objective measurement – the edible quality in meat – but it’s an important one and it ultimately goes to what the consumer may receive.

“Data will be collected about that, and particular breeding techniques and how animal husbandry occurs – and all aspects of producing livestock and genetics and taking it into a processor.

“But the question is; who owns that data; who uses it; and how best can it benefit the sector?

“Obviously the proposal believes there are industry wide benefits and they have commissioned research in that area and we’ll obviously provide more feedback and information on these issues to our client down the track.”

Mr Metcalfe said “We may have not some stuff right and we may have got some stuff wrong but we’re very interested in getting more feedback”.

“Ultimately we’ve got to provide a report to the AMPC but of course we’re operating independently and don’t have any stake in this,” he said.

“This may not be news to everyone but certainly there’s a strong desire for objective measurement in the industry.

“Producers want it because they want fairness and transparency about what they’re getting paid for their livestock and the processors understand it’s an important part of their automation and introduction to robotics.

“What’s also clear is, these are business people who have to make business decisions and they’re only going to make those decisions based on evidence and data.

“And therefore they’re looking at the technology, which is looking promising, and they want it trialled, not just in once place, but probably in a few different places.

“One of the things we’ve been asked to talk about is whether or not DEXA and objective measurement is a way of providing greater transparency.

“We’ll have some views on that, as we finalise our report, but in the meant time we’re open for feedback and comment.

“Some of the issues people want to explore are ones they’re not fearful about but ones they have questions about like the costs of installing and maintaining DEXA.”

Mr Metcalfe outlined the consultation process that’s occurred so far in writing the issues paper including speaking to nine industry bodies, 21 processors and 17 producers, big and small.

“I’ve spoken to peak bodies and producers operating at grassroots level and it has been very interesting to hear what they’re saying about the industry,” he said.

“Almost all producers and processors are calling for pilot programs, to demonstrate the technical and commercial impacts of DEXA, before significant industry expenditure is undertaken.

“Other inquiries are going on and the Senate has a strong interest in this as well.”

Mr Metcalfe said the investigation had also revealed carcase grading and pricing had been an ongoing source of frustration to producers, undermining their trust in processors.

“This mistrust in manual grading is too widespread to be ignored, the industry needs to address this problem,” he said.

“While processors are concerned that DEXA technology will lead to producers pursuing yield over quality, producers intend to use the accurate yield measurement from DEXA to complement their meat quality decision-making, not to redirect it.”

Teys has been trialling DEXA technology and intends to start using it for measuring carcases at its beef processing plant in Rockhampton, from August.