AACo: The Art of Australian Beef is based on data

AACo’s Chairman Don McGauchie is quoted as saying that “we start with the customers, the very highest-end customers, chefs and people prepared to pay the very highest prices for a very high-quality product.”

Then we work back through the marketing, distribution and integrated supply chain, back to the decisions we make about the genetics of what we do…

Under the guidance of CEO, Hugh Killen, the message and modus operandi, remains the same. Understand what the eating experience of Wagyu represents to the customer and work backwards to achieve the very best you possibly can. As the biggest stock exchange listed cattle company in Australia, the sheer scale of AACo is enormous. With a property holding that represents around 1% of Australia’s land mass spread over 23 properties that includes stations and feedlots across Queensland and Northern Territory, and at least half a million head of cattle, the management logistics require careful planning and strategy through a fully integrated supply chain.

TO THE PLATE

The principle aim, as highlighted by McGauchie, is to provide the very best product for consumers and hospitality. AACo has spent many years developing and marketing its core brands based on what consumers are looking for. Aligning the brands with Meat & Livestock’s MSA grading system to quantify the eating quality allows the company to position each brand within a specific segment and expectation. Master Kobe and Kobe Cuisine reflect the origins of AACo’s move into Wagyu with a minimum marble score of 8 and 6 respectively.

The Wylarah and Westholme brands consistently grade at MSA four and five stars and are more often than not listed on the menu under their brand identification.

Brand recognition is an important element in our product as it represents our unique business and operations – we call it the Art of Australian Beef, says Hugh Killen, CEO.

We work with chefs, brand ambassadors and distributors to ensure that when they see the brand name they understand exactly what it is they are receiving and it is up to us as a company to provide a consistent product every time that performs the same way each time it is served.

“The product needs to be able to stand on its own merits based on the quality it represents, not just on its genetics. The brand is about our company – the care, the ethics and approach to sustainable farming operations.” AACo products are distributed throughout Asia with major markets in Singapore, Taiwan, Korea and Japan. Further abroad, products are found in UAE, USA, Europe and the UK. More than 90% of AACo product is exported. The company encourages the use of the whole beast, with cuts such as loin going into Korean-style BBQ; hanger; flat iron and flank steaks can be seen in many good quality steakhouses. Brisket is seeing enormous uptake with low and slow American style BBQ and Asia taking up offal.“The MSA grading system is important and we are ultimately a branded business. A lot of our product was first in the market to be fully aligned to the MSA system. WithWagyu, marbling is an important facet to quality but we believe it is not the only facet. The advantage of the MSA system is that it looks at a range of factors that contribute to the overall eating quality such as taste and tenderness. It is ultimately the overall eating quality that matters to the consumers. So, we focus on the best possible eating quality through all our products and brands.”

PRODUCING THE BEST EATING EXPERIENCE

AACo’s purchase of the entire WestholmeWagyu herd back in 2006 is well known. Itwas a strategic move to improve the overallherd that was essentially a composite of anumber of breeds such as Santa Gertrudis,Shorthorn, Charalois, Bonsmara andBrahman that has evolved over time.

The AACo composite herd has been developed to produce cattle that had ability to create carcase that is highly marketable to both domestic and international customers. The breeding objectives were heat resistance, high productivity through fertility and growth rate. The composites are then used to run the F1 Wagyu program. The company also manages a fullblood Wagyu production system to ensure the highest possible level of genetic gain.

The Westholme fullblood herd contains some of the best Japanese Black genetics outside Japan based on founding sires of Hirashigetayasu (Kedaka line), Itomoritaka (Fujioshi line) and Kitateruyasudoi (Tajiri/ Tajima line), breeding with dams in the Kedaka, Tajiri and Fujiyoshi lines.

The transition back in the 1990s away from the original Shorthorn herd to Wagyu was the recognition that in order to establish a strong beef brand, the company needed a hardy breed that would survive, and thrive in the tough conditions up north. Therefore, the composite herd which includes bos indicus, has shown to be a successful breed for F1 Wagyu.

The marbling and eating quality of Wagyu was identified early on for its ability to offer an unparalleled eating quality and its hardiness.

The genetics in the Westholme herd heralded a significant move by the company to move into a fullblood Wagyu production system and it is the core of what we do and we will continue to develop those genetics with the utmost care. For as long as we are involved in Wagyu, those genetics will be nurtured.

The early days of BREEDPLAN certainly saw significant involvement by AACo, but as the scale of the company’s operations has increased, it has necessitated the development of an in-house breeding and genetics database.

Included in the database are recordings of typical genetic and breeding values – grading values, birthing weights, weight gains and so forth, but it also includes parameters such as feed efficiencies.

While we don’t use BREEDPLAN specifically, we do watch and understand what it represents. Regardless of whether a proprietary system or BREEDPLAN is used, it is the collection of data and interpretation that is the key to successful genetic improvement. With feedback from our customers we can trace back through our data to improve our herd to continue to meet their expectations.

GROWING PASTURE NOT CATTLE

Industry legend, Greg Gibbons is noted to have said that “we are grass managers first and cattle producers second”. Without data on pasture and nutrition and weather forecasts the ability to manage seven million hectares would be difficult.

Keeping the maternal herd healthy and thriving is fundamental to the success of the company and with the majority based in the Gulf country or the Barkly Tablelands, management of the grasslands – predominantly Mitchell grass – gives a good opportunity to provide highly nutritious feed.

Understanding the rising plain of nutrition for the cows and calves through their development is core to the sustainable approach to our management of pasture and livestock. We monitor feed efficiencies with technology such as GrowSafe. Supplements are used and made to our formula that suits the location as each property has differing pasture nutrition.

We can measure across all our properties how much rain we have had and when; the volume of dry matter per hectare, the amount of nutrition available and the feed types present.

Our data indicated in the early part of 2018 that there was a high probability that it might be a tough season, so by weaning earlier than normal we could send the cows up north to take advantage of the nutritious feed while the calves went south to the Darling Downs.

By using as much science around our data, we are well equipped to make decisions on the day – some of them are tough – but ultimately we need to control as many variables as we can.

A SUSTAINABLE BUSINESS

Mention the word sustainability, and most think instantly of climate change, but there is more to it in agriculture. It is about awareness and conservation of your environment, using renewable energy where you can and attracting a work force that works well together to create a positive culture within the workplace and in the local community.

To grow grass, requires understanding of the soil and biodiversity, how the grasses grow and managing stocking rates at a level that gives optimal growth based on local seasonal conditions. Like most of Australia, water resources are precious and not to be taken for granted.

Environment issues are always a big issue for the company. In the feedlots we recycle all of our wastewater into the cropping fields, while manure is collected for fertiliser for the irrigation properties. Water is sourced from subartesian aquifers via bores and there is a clear directive to move to solar power for stock water delivery instead of diesel.

As many of AACo’s properties are in isolated small communities, support of the workforce and the locals is important and the company contributes with support for events such as campdrafting competitions and the local Royal Flying Doctor Service.

The lifeblood of AACo has always been its people.

With Wagyu legends such as Greg Gibbons in the early days to the young graduates coming on board today together with the seasonal workers, the company can continue to grow and develop the best possible product to put on the table where knowledge and science are the foundation stones.