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Department of Primary Industries and RegionalDevelopment

Dedicated supply chains for Noongar branded food productsSummary report

May 2023

Executive summaryIn May 2017, Sheep Industry Business Innovation (SIBI) and Aboriginal Business Development (ABD) projects within the Department of Primary Industries and Regional Development (DPIRD) collaborated to conceptualise this study to investigate the market demand and potential supply chains for Noongar branded food products.

The study has been guided by a Supply Chain Working Group that consists of enterprises with shared cultural and sustainability values and whom wish to cooperate for the production of Noongar branded, value-added sheepmeat and native food products.

Project values:

1. Connection and commitment to country, particularly for the Aboriginal people of Noongar Boodja,

2. Land stewardship and rehabilitation (especially for salt-affected non-cropping land in southern WA),

3. Animal welfare and ethical production, and

4. Producing a high quality product for premium market consumption.

Project scopeThere have been three components to the project’s scope of works:

Part 1: Consultation with Working Group and stakeholders

This component involved collating input from the Supply Chain Working Group and engaging with other key stakeholders, especially the Noongar Land Enterprise (NLE) Group (www.noongarlandenterprise.com.au/).

Part 2: Current situation analysis

This component consisted of three key elements:

a. Market survey and analysis:

– An analysis of markets to identify what Australian Indigenous food products are currently in demand and why, as well as quantifying the potential market size.

– For this specialist niche market survey, GHD engaged the specialist sub-consultant, FreshLogic (www.freshlogic.com.au).

b. Supply chain simulation study to the determine likely sheep production and processing logistics for NLE-affiliated producers in Western Australia.

c. Desktop analysis and discussions with other successful Indigenous and/or native food branded businesses and articulation of their success strategies. This analysis included Australian and international (New Zealand and North American) business examples.

Part 3: Forward action plan

Finally, the outcomes and learnings from the study were disseminated in June 2018 at an NLE-hosted forum in Cranbrook, bringing together all stakeholders to identify key actions to move forward.

Provenance and branding storyTo encapsulate the values outlined above, a preliminary branding statement was developed to summarise the potential provenance story for the proposed Noongar-branded sheepmeat and native food products. This branding statement was heavily critiqued and revised, with input from DPIRD, Working Group members and a professional communications writer. During this critique process, the brand name ‘Kookenjeri’ – being the Noongar word for sheep – was proposed and adopted.

The primary purpose of the branding statement was to provide a succinct and compelling provenance story that could be used for market testing; and ultimately could be taken to market by a Noongar-led business.

‘Kookenjeri’ premium sheepmeat and wild food products are sustainably harvested from the saltland pastures of southern Western Australia by a collaborative network of Aboriginal and non-Aboriginal resource managers.

Led by Noongar elders, the Kookenjeri philosophy is based on a deep-seated cultural commitment to land stewardship, ethical food production, sustainable harvest and connection to country.

These shared values influence every step of the Kookenjeri value chain, starting with the use of ethically driven targeted genetics – purpose-bred for animal well-being, alongside premium quality meat and fibre production.

The Kookenjeri farm-to-table value chain is dedicated to the needs of the consumer, while nurturing employment and empowerment opportunities for the Noongar families in the collective – fostering new skills and economic independence. The sharing of values between Kookenjeri producers, Aboriginal and non-Aboriginal, has created a

greater sense of community across the collective, celebrating a connection to country and the central role of food in family life.

Key findings and success factorsThe key findings of this study are summarised into the nine success factors outlined below:

1. There is growing demand for native foods, particularly in premium food service. The common use of native foods in ‘modern Australian cuisine’ bodes well for an offer that includes both sheepmeat (particularly lamb) and native foods. However, further work is needed to educate chefs and consumers on dry-aged sheepmeat for it to consistently command a premium.

2. Security, consistency and quality of product supply is a vital success factor and key to determining business success or failure, especially for a new product (such as dry-aged sheepmeat, or native foods). The business must be able to meet demand (including peaks) and give confidence to the customers.

3. A well-communicated provenance story is a key success factor. It must be authentic, concise and factual; yet be sufficiently flexible to allow the chef and/or retail outlet to mould the story around their own branding. Direct marketing of the product and provenance story to chefs has been successful for other premium and/or niche products. A sophisticated, professional internet and social media presence has also been effective for several businesses.

4. Indigenous branding on its own will not guarantee success, nor command a premium. Other Indigenous branded products in mainstream retail are typically positioned as “mid-range”. Other provenance attributes, especially environmental stewardship, are stronger. Other businesses have similarly found that a well-communicated and consistent bundle of provenance attributes is a key success factor – e.g. cultural heritage + environmental stewardship + health benefits + gourmet product quality.

5. The Kookenjeri offering is best suited to the premium fine/experiential dining market channel. There is likely to be less scope for Kookenjeri in specialty meat retail, as there is often less opportunity for communication of brand and provenance stories, and premium products are more likely to be commoditised. Assuming a long-term market share of between 10% and 30% in the fine/experiential restaurant market, Kookenjeri could generate annual revenues in the order of $1.7 – $5.0 million. This would require an annual turnoff of 1,900 – 5,700 sheep, and 9,100 – 27,300 lambs.

6. The six properties currently affiliated with the NLE Group could, at estimated full carrying capacity, meet approximately 5% of the market demand in the premium fine/experiential restaurant market channel. To realise the full potential of the market opportunity, there is a need for collaboration with existing non-Noongar producers, whom are aligned with the project values.

7. There are several potential value-add supply chain models, all involving the establishment of a joint marketing company to coordinate production, manage commercial arrangements and distribute returns to producers. Depending on the preferred model, this company could also become involved in processing, branding, marketing and wholesaling activities. In general, the more the company becomes involved in these supply chain activities the greater the risk, complexity and share of value that can be captured. In order to justify the increased risk and costs, Kookenjeri products would need to achieve price premiums of between 3 – 22%.

8. The key supply chain risks for a Noongar-branded sheepmeat product are: 1) Coordination of production and turn-off; 2) Finding available processing and chilling space; 3) Shifting product while maintaining premiums; and 4) Regulatory risks (especially for mobile abattoirs).

9. Stakeholder engagement and governance for the production business is important, especially when the business is built around cultural values and economic empowerment. The New Zealand Maori model is interesting and may be relevant to an Aboriginal owned agribusiness in Australia – i.e. a commercial board focusing on making a return on investment, and then a social board, whose role is to decide what to do with the profits.

RecommendationsBased on the key study findings outlined above, it is evident that there exists a viable business opportunity for Noongar branded sheepmeat and native food products, particularly in the premium food service market channel.

The following table outlines a recommended implementation pathway, developed around the particular Kookenjeri offering conceptualised in this study, and aimed specifically at the NLE Group as the most likely primary motivator for further action.

Recommended Kookenjeri implementation pathwayTimeline

Task Who

0-1 years

— Disseminate and discuss the outcomes of this study at the NLE Group meeting (Cranbrook, June 2018). Reach an in-principle agreement to pursue and develop the Kookenjeri business opportunity.

DPIRD and NLE

— Secure the intellectual property rights associated with the Kookenjeri brand, as conceptualised in this report.

DPIRD

— Seek funding and/or investment to pursue this recommended implementation pathway (particularly for the initial actions in 0-1 years).

NLE, with support from DPIRD

— Seek connections and affiliations with other Noongar and non-Noongar properties and businesses that may be interested in the Kookenjeri business.

— Seek connections and affiliations with other Indigenous businesses (i.e. contacts listed within this report); and attend the World Indigenous Business Forum, Rotorua, 20 September 2018.

NLE

— Develop a Kookenjeri Business Strategy to:

o Determine the economic viability of the opportunity;

o Describe the project benefits, expected financial performance, high-level implementation plan, projected operational performance, organisational design and governance process; and

o Create a case for investment in the project by either a government or private investor.

NLE, with support from DPIRD or other government agencies

— Appoint a dedicated Business Manager to begin execution of the Business Strategy.

NLE

1-2 — Develop livestock production capacity, including NLE

Timeline

Task Who

years on-farm infrastructure, skills and genetics.

— Invest in production challenges for native foods – i.e. agronomy, propagation, seasonality, harvest methods, preparation methods and consumer use.

— Share learnings across NLE Group (and other affiliates) around production techniques.

affiliates

DPIRD, NLE, Gillami Centre

NLE, Gillami Centre

— In line with the Business Strategy, further develop consistent product specifications, marketing strategy and collateral (inc. authentic, concise provenance story) for Noongar branded sheepmeat and native food products.

Business Manager

2-4 years

— In line with the Business Strategy, form a joint marketing company with Board representation from each of the NLE Group members and outside specialists with livestock and red meat marketing experience.

— Give consideration to the governance model of New Zealand Maori businesses.

NLE members, Business Manager

— Discuss opportunities with potential supply chain partners and buyers including processors, mobile abattoirs, wholesalers, specialty butchers, premium restaurants and native foods wholesalers / retailers.

Business Manager

— Develop an initial low risk product trial with a limited number of livestock being killed, processed and packaged at a small local abattoir and supplied to a Perth restaurant, with secondary cuts sold via wholesalers and farmers markets. As part of the trial undertake some initial brand development and direct marketing.

— Use the learnings from the trial to refine the product, marketing and supply chain arrangements. Decide whether to market direct to retailers or via a wholesaler, noting that all partners in the brand’s supply chain should be similarly committed to the underlying values of the provenance story.

Business Manager, NLE members

Timeline

Task Who

5-6 years

— Steadily ramp up supply in line with demand, processing larger and more frequent batches.

— By this time mobile or micro-abattoir businesses may be operational in the South West of WA (e.g. via Farmgate MSU). Consider the costs and benefits of adopting on-farm slaughtering.

— Consider opportunities to increase supply by involving more producers.

Business Manager

This report is subject to, and must be read in conjunction with, the limitations set out in section Error: Reference source not found and the assumptions and qualifications contained throughout the Report.