AgriFutures Kangaroo Program Strategic RD&E Plan - (2021-2026) September 2021

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AgriFutures Kangaroo Program Strategic RD&E Plan - (2021-2026) September 2021
AgriFutures Kangaroo
Program Strategic RD&E Plan
(2021-2026)

September 2021
AgriFutures Kangaroo Program Strategic RD&E Plan - (2021-2026) September 2021
AgriFutures
Kangaroo Program
Strategic RD&E Plan
(2021-2026)
© 2021 AgriFutures Australia.
All rights reserved.

AgriFutures Kangaroo Program
Strategic RD&E Plan 2021-2026

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ISBN: 978-1-76053-166-9
ISSN: 1440-6845
Publication No. 21-036
Project No. PRJ-010505

This Strategic RD&E Plan 2021-2026 builds on initial work completed in
2016 by Miracle Dog Pty Ltd on a Strategic RD&E Plan specifically for the
Australian kangaroo industry.

Electronically published by AgriFutures Australia in September 2021.

AgriFutures Australia is the new trading name for Rural Industries
Research & Development Corporation (RIRDC), a statutory authority of the
Federal Government established by the Primary Industries Research and
Development Act 1989.
AgriFutures Kangaroo Program Strategic RD&E Plan - (2021-2026) September 2021
2021-2026                                                                                                                 5

                                           Foreword
                                           The AgriFutures Kangaroo Program invests in research, development
                                           and extension (RD&E) to foster a sustainable and more profitable
                                           Australian kangaroo industry.

                                           The commercial harvest of kangaroos in Australia has        AgriFutures Australia’s vision is to grow the long-term
                                           been described as “one of the world’s best wild-harvest     prosperity of Australian rural industries. We have three
                                           operations” with management goals based firmly on           strategies to grow profitability and sustainability in our
                                           principles of enhancing animal welfare. Kangaroos are       levied industries:
                                           harvested in line with the National Code of Practice for
                                           the Humane Shooting of Kangaroos and Wallabies for          •   Engaging industry participants in determining
                                           Commercial Purposes, released in 2020, which sets               RD&E priorities.
                                           an achievable standard of humane conduct and is the
                                                                                                       •   Investment in innovation that assists levied
                                           minimum required of persons shooting kangaroos and
                                                                                                           industries to be more profitable.
                                           wallabies for commercial purposes.
                                                                                                       •   Delivering outcomes to maximise industry
                                           The industry is highly regulated and operates under             uptake and adoption.
                                           a quota system administered by state and federal
                                                                                                       The profitability, productivity and sustainability of rural
                                           governments. The scientific community and state
                                                                                                       industries is AgriFutures Australia’s core business, and
                                           wildlife management agencies consider that annual
                                                                                                       the organisation works with its portfolio industries to
                                           harvest levels in the order of 15% of the populations for
                                                                                                       invest in their priority RD&E needs. AgriFutures Australia
                                           eastern and western grey kangaroos and wallaroos, and
                                                                                                       fosters strong relationships with industry partners,
                                           20% for red kangaroos, are sustainable. However, since
                                                                                                       including the kangaroo industry, to ensure RD&E
                                           2014, the number of kangaroos harvested has been well
                                                                                                       investment leads to practical knowledge and innovation
                                           below the permitted quota. This suggests that there is
                                                                                                       that can be adopted by industry members.
                                           a sustainable resource available should demand for
                                           kangaroo products, namely meat and leather, increase.
                                                                                                       AgriFutures Australia will continue to work with the
                                                                                                       kangaroo industry to ensure the five-year research
                                           It’s within this context that the AgriFutures Kangaroo
                                                                                                       priorities meet industry needs and are informed by
                                           Program Strategic RD&E Plan has been developed.
                                                                                                       Government priorities. The adoption of RD&E outcomes
                                           Strategic RD&E Plans are a key part of implementing
                                                                                                       is fundamental to success, and just as we have with
                                           AgriFutures Australia’s RD&E strategies, and are the
                                                                                                       the AgriFutures Kangaroo Program Strategic RD&E
“ AgriFutures Australia will continue      base on which investments are made on behalf of our
                                           levied industries. These Plans identify productivity and
                                                                                                       Plan, AgriFutures Australia will work with industry and
                                                                                                       Government stakeholders to ensure the corporation
                                           sustainability RD&E priorities and the planned outcomes
  to work with the kangaroo industry       for each industry. Each has an appropriate balance of
                                                                                                       invests in knowledge that is useful and adopted by
                                                                                                       end users.
  to ensure the five-year research         productivity and sustainability RD&E priorities.

  priorities meet industry needs and are
  informed by Government priorities. ”

                                                                                                       John Smith
 John Smith                                                                                            General Manager, Research
                                                                                                       AgriFutures Australia
AgriFutures Kangaroo Program Strategic RD&E Plan - (2021-2026) September 2021
AgriFutures Kangaroo Program Strategic RD&E Plan                              6   2021-2026
                                                                                   2020-21                77

Contents
Foreword                                                                     5

Our vision                                                                   8

Executive summary                                                            9

Plan on a page                                                               10

Industry profile                                                             12

Research                                                                     18

Industry consultation                                                        19

Kangaroo Program Strategic RD&E Plan 2021-2026                               20

Priority 1          The kangaroo industry’s licence to operate is enhanced   22

Priority 2          The consumer appeal of kangaroo products is enhanced     25

Plan implementation and governance                                           28

Monitoring, evaluation and reporting (MER) framework                         29

                                                                                  AgriFutures Australia
2021-2026                                                                                                                9

                                                      Our vision
                                                 To grow the long-term prosperity
                                                   of Australian rural industries                                                                           Executive summary

                 1                                       2                                      3                                      4                    The AgriFutures Kangaroo Program Strategic RD&E Plan 2021-2026
                                                                                                                                                            outlines the key development priorities of the Australian kangaroo
         People and                         National Challenges                           Growing                                Emerging
         Leadership                         and Opportunities                            Profitability                           Industries                 industry, and guides research, development and extension investments
                                                                                                                                                            linked to those priorities.
  Goal                                    Goal                                    Goal                                    Goal
  To support the people driving           To identify and nurture research        To enhance the profitability            To support new and emerging
  the future prosperity of                and innovation opportunities            and sustainability of our levied        rural industries.                 The Plan details the state of the industry with regards     Following a review of earlier work, an extensive
  Australian rural industries             that are synergistic across rural       rural industries. Regional
  and regional communities by             industries.                             communities and the broader                                               to wild kangaroo numbers, quotas for the four species       consultation process involving the Kangaroo Industry
  providing them with learning                                                    Australian economy depend on                                              approved for commercial harvest, value of products sold     Association of Australia (KIAA), industry participants and
  opportunities and experiences.                                                  profitable farms.
                                                                                                                                                            domestically and overseas, and the strengths, weaknesses,   other stakeholders was undertaken to develop this Plan.
                                                                                                                                                            opportunities and threats (SWOT) faced by the industry.     Roadblocks to industry growth and the RD&E activities
  Priorities                              Priorities                              Priorities                              Priorities
                                                                                                                                                            A breakdown of the Australian macropod levy, which          that can address them within the next five years were
  Attracting capable people into          Informing debate on issues of           Engaging industry participants          Supporting the early stage
  careers in agriculture.                 importance to rural industries.         in determining RD&E priorities.         establishment of high potential   contributes to National Residue Survey testing and R&D      identified. Feedback on an initial draft was incorporated
  Building the capability of              Adapting new technologies for           Investing in innovation that
                                                                                                                          rural industries.                 investments, is also included.                              into the final version.
  future rural leaders.                   use across rural industries.            assists levied industries to be
                                                                                  more profitable.
                                          Working collaboratively on
                                          issues common across rural              Delivering outcomes to maximise
                                          industries.                             industry uptake and adoption.

                                                                                                                                                            The kangaroo industry’s priorities for 2021-2016 are:

                                                                        Outcome                                                                                                    The kangaroo industry’s licence                             The consumer appeal of
                                                                                                                                                            Priority     1         to operate is enhanced.
                                                                                                                                                                                                                        Priority     2         kangaroo products is enhanced.
    Rural industries are                      Challenges and                       Industry participants                       High-potential
   equipped with skilled                   opportunities that are                 are confident that their                        emerging
      people and the                        common across rural                      levy investment is                        rural industries
  leadership to grow and                  industries are identified                   delivering value.                         established.
          prosper.                            and addressed.
                                                                                                                                                            These priorities are each underpinned by three strategies
                                                                                                                                                            that will influence RD&E investment decisions made by
                                                                                                                                                            the AgriFutures Kangaroo Program. Details of activities
                                                                                                                                                            to implement the priorities, and key performance
                                                                       Approach
                                                                                                                                                            indicators to measure success, are provided within
                                                                                                                                                            the body of the Plan.
             1                               2                                3                               4                             5

      Listening                                                     Partnerships                      Performance                 Efficient business
                                    Delivering results
   and influencing                                                and collaborations                     culture                       practices

                                   Values                                                                           Purpose
     Connected / Positive / Real / Future-thinking                                    Through research and development, increase
Innovative / Quality / Approachable / Networked / Confident                        knowledge and understanding that fosters innovation,
              Professional / Commercially savvy                                           adaptive and valuable rural industries.
AgriFutures Kangaroo Program Strategic RD&E Plan                                                                               10   2021-2026                                                                                                                  11

Plan on a page

Table 1: The Kangaroo Program Strategic RD&E Plan 2021-2026 is presented as a ‘Plan on a page’
below. All key performance indicators (KPIs) are to be achieved by the end of the Plan in 2026.

Priorities                 Strategies                      Activities                       KPIs                                    Priorities           Strategies                     Activities                       KPIs

                           1.1 Continuously focus on       1.1.1 Compile the scientific     Scientific evidence is compiled                              2.1 Identify the nutritional   2.1.1 Undertake nutritional      Nutritional benefits of kangaroo
  1                        enhancing animal welfare        information available on the     and is a standard sufficient to           2                  value of kangaroo meat         studies on kangaroo meat.        meat have been identified for
                           outcomes                        industry’s animal welfare        gain third-party endorsement                                                                                                 promotion by industry players.
The kangaroo                                               practices (desktop exercise).    of the industry’s animal welfare        The consumer                                        2.1.2 Compile scientific
industry’s licence to                                                                       practices.                              appeal of kangaroo                                  information on the nutritional
operate is enhanced                                        1.1.2 Compare the animal                                                 products                                            benefits of kangaroo meat to
                                                           welfare credentials of the                                               is enhanced                                         support marketing activities.
                                                           kangaroo industry with other
                                                           animal-based proteins.
                                                                                                                                                         2.2 Demonstrate the            2.2.1 Research the effects       Scientific data is generated to
                                                                                                                                                         food safety credentials of     of gamma irradiation on          satisfy regulators that gamma
                           1.2 Demonstrate the             1.2.1 Compile the scientific     Scientific evidence on industry                              the industry                   kangaroo meat and other          irradiation is a safe treatment for
                           sustainability credentials of   information available on the     sustainability is compiled.                                                                 interventions as required for    kangaroo meat.
                           the industry                    sustainability of the industry                                                                                               market access.
                                                           (desktop exercise) and develop                                                                                                                                Marketing activities demonstrate
                                                           a counterfactual piece of                                                                                                    2.2.2 Promote the hygiene        the whole-of-chain safety of
                                                           research – ‘What would be the                                                                                                practices and food safety        kangaroo meat.
                                                           environmental and biodiversity                                                                                               credentials of the kangaroo
                                                           impacts if kangaroos were not                                                                                                meat chain.
                                                           humanely harvested?’

                                                                                                                                                         2.3 Enhance value              2.3.1 Research the factors       Product specifications are
                           1.3 Undertake                   1.3.1 Distribute final reports   Targeted market research                                     through improved               (cut, type of animal, area of    determined that support eating
                           effective communications        and easily digestible summary    shows an improved consumer                                   product specifications         origin) that affect the eating   quality assurance claims.
                           and extension                   information about activities     perception of the industry and                                                              quality of kangaroo meat.
                                                           undertaken.                      kangaroo products.
                                                                                                                                                                                        2.3.2 Review the approaches
                                                           1.3.2 Distribute updates         80% of stakeholders in the                                                                  taken in other wild-kill
                                                           on work being undertaken         kangaroo industry are well-                                                                 industries to determine
                                                           and progress made towards        informed of the activities and                                                              product specification and
                                                           targets.                         outcomes of this Plan.                                                                      differentiation

                                                           1.3.3 Undertake targeted                                                                                                     2.3.3 Develop a product
                                                           market research to assess                                                                                                    specification and grading
                                                           impacts on industry and                                                                                                      framework suitable for
                                                           product perceptions.                                                                                                         the industry.
AgriFutures Kangaroo Program Strategic RD&E Plan                                                                                        12   2021-2026                                                                                                                         13

Industry profile

Australia’s commercial kangaroo                                             Queensland, NSW, South Australia and Western Australia
                                                                            have management plans for the commercial harvest                 60,000,000                                                                                                                    50
harvest industry has been                                                   of kangaroos for export. Smaller-scale commercial
described as “one of the world’s                                            harvest also occurs in Victoria. Two species of wallaby are                                                                                                                                    45
                                                                            commercially harvested in Tasmania.2                             50,000,000
best wild-harvest operations”                                                                                                                                                                                                                                              40
with management goals based                                                 All ‘harvesters’ must be accredited and licensed by state                                                                                                                                      35
                                                                            agencies and must operate under strict hygiene and               40,000,000
firmly on principles of enhancing                                                                                                                                                                                                                                          30
                                                                            animal welfare codes of practice. Management plans and
animal welfare.1                                                            wildlife trade operations require that harvest methods
                                                                            comply with the National Code of Practice for the Humane         30,000,000                                                                                                                    25
The kangaroo industry is highly regulated and operates                      Shooting of Kangaroos and Wallabies for Commercial
under a quota system administered by state and
                                                                                                                                                                                                                                                                           20
                                                                            Purposes. The Code is available on the AgriFutures
federal governments. Only four species of kangaroo                                                                                           20,000,000
                                                                            Australia website, at https://www.agrifutures.com.au/                                                                                                                                          15
are approved for commercial harvest and export – the                        kangaroo-national-code-of-practice.
red, eastern grey and western grey kangaroos, and                                                                                                                                                                                                                          10
the common wallaroo or euro. None are listed as a                                                                                            10,000,000
                                                                            Figure 1 provides a summary of the main statistics in
threatened species under national environment law,                          relation to wild harvest of kangaroos in Queensland, NSW,
                                                                                                                                                                                                                                                                           5
or under state or territory legislation.                                    South Australia and Western Australia.                                        0                                                                                                                0
                                                                                                                                                                2011           2012          2013       2014      2015       2016       2017        2018       2019
                                                                            Key points from the data include:
Kangaroo numbers, quota and harvest                                                                                                                                                         Kangaroo population    Number harvested
                                                                            •    The kangaroo population can vary significantly,
                                                                                                                                                                                            Sustainable quota      Harvest as a % of quota
The scientific community and state wildlife                                      depending on season. Over the four years from 2011
management agencies consider that annual harvest                                 to 2014, the population more than doubled.
levels in the order of 15% of the populations for grey                                                                                       Figure 1: Kangaroo harvest statistics for Australia3
                                                                            •    The sustainable quota as a percentage of the
kangaroos and wallaroos, and 20% for red kangaroos,
                                                                                 kangaroo population is very close to 15% each year.
are sustainable. The sustainable harvest quotas are
set at or below these rates and represent an upper                          •    Actual commercial harvest is generally significantly                                                                             and sausages increases the value of non-primal cuts.
harvest limit independent of industry demand. To                                 less than the approved quota. The annual number of          Kangaroo products and value
                                                                                                                                                                                                                  The average weight of a kangaroo carcase is about 25
ensure there is no detriment to any species in any                               kangaroos harvested from 2014-18 was about 20%                                                                                   kilograms and fetches an average price of about $1/kg.
                                                                                                                                             There are three products from wild harvest of kangaroos:
region, each state is divided into zones for monitoring                          of the quota. In 2019, the number harvested was
and quota-setting.                                                               25% of the quota. In the 2000s, harvest percentage          •    Meat for human consumption                                      The most recent statistics available indicated that the
                                                                                 was considerably higher, due largely to lower quota                                                                              gross value of production for the Australian macropod
                                                                                                                                             •    Meat for use in pet food
                                                                                 numbers. The highest use of quota was at 86% in                                                                                  industry (of which kangaroos and wallabies are two) for
                                                                                 2006, with a strong Russian trade.4                         •    Kangaroo skins and leather                                      2019-20 was $30.5 million.6
                                                                            •    The kangaroo population is highest in Queensland,
                                                                                                                                             Precise figures on the ratio of human consumption to pet             From an export perspective, some data is available from
                                                                                 followed by NSW, South Australia and Western Australia.
                                                                                                                                             food use is not readily available, but it has been estimated         ABS reports. From 2011-12 onwards, many categories
                                                                                                                                             at about 50:50 by weight and 70:30 by value.5                        that were specific to ‘kangaroo’ products were merged
                                                                                                                                                                                                                  with other similar products, thus making data difficult
                                                                                                                                             Of meat sold for human consumption, 10-15% of kangaroo               to identify. The following has been customised from
                                                                                                                                             is sold as primal cuts, achieving the highest unit price             ABS data.7
https://www.agriculture.gov.au/export/controlled-goods/kangaroo
1
                                                                                                                                             on the carcase. The balance is sold for processing/
http://www.environment.gov.au/biodiversity/wildlife-trade/natives#a3
2
                                                                                                                                             manufacturing. Value-adding in the domestic market
http://www.environment.gov.au/system/files/pages/ee20f301-6c6c-44e4-aa24-62a32d412de5/files/kangaroo-statistics-states-2020.pdf
3
                                                                                                                                             through products such as marinated cuts, rissoles
Oliver & Doam (2015), Kangaroo Meat Export Market Access Analysis
4

Jobson, D. (2019), personal communication
5

6
    Department of Agriculture, Water and the Environment (2020), organisational communication
Curtis, K. (2019), personal communication
7
AgriFutures Kangaroo Program Strategic RD&E Plan                                                                                                14   2021-2026                                                                                                                                        15

Industry profile

Table 1: Value (AUD million, nominal) of Australian exports of fresh, processed or other                                                             In recent years, the main export markets for fresh                          The report also made 22 recommendations for export
(not elsewhere specified) kangaroo meat                                                                                                              kangaroo meat have been Belgium, Germany, the                               market development. These included: Invest in an
                                                                                                                                                     Netherlands, Papua New Guinea and France.                                   export market development program on meat for human
                                                                                                                                                                                                                                 consumption; Improve market and industry intelligence
Year                               Fresh                             Processed*                                  Other*
                                                                                                                                                                                                                                 and insight; Acquire improved access into current markets
                                                                                                                                                     Previous plans, reviews and priorities                                      and new access into alternative reliable markets; Invest in
2013-14                            21.55                             0.11                                        0.88                                                                                                            product development to effectively use the whole carcase
                                                                                                                                                     Williams and Pattinson8 developed a revised New &                           at a more premium level; Develop the pet food sector for
                                                                                                                                                     Developing Animal Industries Five Year RD&E Plan in 2013                    kangaroo meat; Expand industry capacity; Conduct an
2014-15                            18.84                             0.07                                        1.02                                                                                                            in-depth study on halal processing requirements and
                                                                                                                                                     covering the period until 2018. The Plan incorporated
                                                                                                                                                     an appendix for each levy-paying industry, including                        accreditation; Conduct a feasibility study on establishing a
                                                                                                                                                     kangaroos.                                                                  standard meat grading system.
2015-16                            18.65                             0.09                                        1.59

                                                                                                                                                     The foci of attention in that plan were:                                    In 2016, Williams and Pattinson undertook initial work
2016-17                            14.49                             0.09                                        3.10                                                                                                            on an RD&E Plan specifically for the Australian kangaroo
                                                                                                                                                     •       Marketing and market development                                    industry, which included a SWOT analysis (covering human
                                                                                                                                                                                                                                 consumption, pet food and skins). That SWOT analysis has
2017-18                            16.07                             0.35                                        3.39                                •       Export market access                                                been updated for inclusion in this Strategic RD&E Plan
                                                                                                                                                     •       Further development of the skin market                              2021-2026, and is presented on the next page.
* Estimated using the ratio of (kangaroo) to (kangaroo + other) in the five years 2006-07 to 2010-11 when ‘kangaroo’ was reported separately.
                                                                                                                                                     •       Quality control
                                                                                                                                                     •       Social licence to operate
                                                                                                                                                     •       Increasing costs on all fronts

Table 2: Volume (tonnes) of Australian exports of fresh and processed kangaroo meat
                                                                                                                                                     In 2015, the kangaroo industry commissioned an analysis
                                                                                                                                                     to identify opportunities to develop the kangaroo meat
Year                                           Fresh                                       Processed*
                                                                                                                                                     trade in volume and value.9 The report identified primary
                                                                                                                                                     markets (EU, US, Japan but pet food only), secondary
2013-14                                        4,619                                       28.5                                                      markets (Japan, South Korea) and markets into which
                                                                                                                                                     there is currently no access (China, Russia) for meat for
                                                                                                                                                     human consumption and pet food.
2014-15                                        3,860                                       59.0

2015-16                                        3,406                                       13.7

2016-17                                        2,986                                       15.2

2017-18                                        3,031                                       67.8

* Estimated using the ratio of (Kangaroo) to (Kangaroo + other) in the five years 2006-07 to 2010-11 when ‘kangaroo’ was reported separately.

                                                                                                                                                     8
                                                                                                                                                      Williams, S. and Pattinson, R. (2014). New & Developing Animal Industries Five Year RD&E Plan (2013-2018). https://rirdc.infoservices.com.au/
                                                                                                                                                     items/14-055
                                                                                                                                                     9
                                                                                                                                                         Oliver and Doam (2015). Kangaroo Meat Export Market Access Analysis
AgriFutures Kangaroo Program Strategic RD&E Plan                                                                     16   2021-2026                                                                                                                  17

SWOT analysis

Figure 2: SWOT analysis of the Australian kangaroo industry

Strengths                                                   Weaknesses                                                    Opportunities                                                 Threats

Industry as a whole                                         Industry as a whole                                           Industry as a whole                                           Industry as a whole
• The industry has a positive story to tell – it delivers   • Mixed messages – is this a product for human                • Strong goodwill in government and public for wildlife use   • Staff shortages for harvest and processing.
  positive environmental benefits for the kangaroo            consumption or pet food?                                      and improvements in rangeland sustainability.               • Freight a relatively high component of product cost.
  population and rangelands.                                • Supply can fluctuate (e.g. quota changes due to seasonal    • Some resource in VIC, SA, NT and NSW not under current      • Australian society is increasingly emphasising
• Kangaroo is a unique product.                               conditions), limiting responsiveness to increased             commercial use management plans.                              environmental and animal welfare issues – without
• Industry is well-regulated.                                 demand.                                                     • Lower methane production than beef or lamb.                   a good understanding, the industry can be portrayed
• Industry levy means there is a funding pool for           • Low new harvester recruitment rate.                                                                                         as having negative environmental or animal welfare
  RD&E projects.                                            • Many small processing plants have varying standards.        Human consumption sector                                        consequences.

                                                            • Complex and variable regulatory environment.                • Increasing domestic acceptance of game/indigenous           • Expensive public liability insurance for harvesters.
Human consumption sector                                                                                                    meats, especially at retail level.
• Health benefits in kangaroo meat have been identified     Human consumption sector                                      • Improved exposure to kangaroo for trainee chefs.            Human consumption sector
  by medical fraternity.                                    • Still some problems with consumer perceptions of            • Strong domestic market growth potential                     • Access to some markets.
• Australian consumers are increasingly prepared to try       kangaroo (especially after consumer influencers such as       (including smallgoods).                                     • High reliance on a few key markets, especially for
  new foods.                                                  “Kangaroo, The Movie”).                                     • Higher prices for red meats generally domestically.           manufacturing meat.
                                                            • Low domestic restaurant trade uptake.                       • Export demand for manufacturing meat.                       • No significant domestic meat manufacturing market.
Pet meat sector                                             • Limited technical information sharing between                                                                             • Lack of confidence among consumers about how to use
                                                                                                                          • Room for new product development, e.g. ready-to-
• Fresh kangaroo meat is a great pet food product.            processors, e.g. no benchmarking study.                       heat meals.                                                   kangaroo meat.
• Industry delivers a wholesome product.                    • Product quality can be variable.
                                                            • No generic product marketing.                               Pet meat sector                                               Pet meat sector
Skin sector                                                 • The bulk of export production is sold to the consumer as    • Pet owners increasingly willing to pay for premium          • Demand for kangaroo as a pet food product is currently
• Kangaroo leather is recognised as being unique.             ‘meat’ not ‘kangaroo’.                                        packaging/image.                                              high, so this text can be deleted.

• It is the strongest light-weight leather in the world.    • Low price points.                                                                                                         • Low current supply may mean that many consumers will
                                                                                                                          Skin sector                                                     turn to alternative products.

                                                            Pet meat sector                                               • Increased value-adding prior to export.
                                                                                                                                                                                        Skin sector
                                                            • Competing against human consumption prices for
                                                              supply.                                                                                                                   • Ongoing challenges from animal liberationists, e.g.
                                                                                                                                                                                          targeting the skin sector internationally.
                                                            • Low use by major manufacturers.
                                                                                                                                                                                        • Improvements in the pricing and technology of ‘synthetic
                                                                                                                                                                                          leather’ options.
                                                            Skin sector
                                                                                                                                                                                        • Substitution with cheaper but slightly inferior options
                                                            • Low skin prices.                                                                                                            such as goat or calf keeps a cap on prices.
                                                            • Product variability.
                                                            • Cost of tag removal and disposal.
                                                            • Most end products are sold to the consumer as ‘leather’,
                                                              not ‘kangaroo leather’.
AgriFutures Kangaroo Program Strategic RD&E Plan                                                                                                18   2021-2026                                                      19

Research                                                                                                                                             Industry consultation

Macropod levy                                                                                                                                        The following review and consultation were undertaken to
                                                                                                                                                     determine the kangaroo industry’s priorities and strategies
The macropod levy comprises National Residue Survey                                                                                                  for this 2021-2026 Strategic RD&E Plan:
(NRS) testing and research and development (R&D), as                                                                                                 •    Review of initial work completed in 2016 on a Strategic
shown in the table below.10                                                                                                                               RD&E Plan specifically for the Australian kangaroo
                                                                                                                                                          industry; Industry objectives proposed at the time were
                                                                                                                                                          ‘By 2021, the kangaroo industry will be consistently
Table 4: Breakdown of the Australian macropod levy                                                                                                        and profitably using the full sustainably available
                                                                                                                                                          kangaroo resource’; and ‘By 2021, the kangaroo
                                                                                                                                                          industry will be broadly recognised by the Australian
Macropod                                                                      NRS                    R&D                    Total
                                                                                                                                                          public as delivering an essential and valuable
                                                                                                                                                          environmental management service’.
Kangaroos – for human consumption                                             $0.03/carcase          $0.04/carcase          $0.07/carcase
                                                                                                                                                     •    Contact with the industry peak body and members
                                                                                                                                                          of the executive to advise that a 2021-2026 Strategic
Other macropods – for human consumption                                       $0.00                  $0.04/ carcase         $0.04/carcase                 RD&E Plan was being developed, and to obtain
                                                                                                                                                          relevant information.
                                                                                                                                                     •    Drafting of the Plan.
All macropods – for animal consumption                                        $0.00                  $0.03/ carcase         $0.03/carcase
                                                                                                                                                     •    Targeted circulation of the draft Plan to obtain
                                                                                                                                                          feedback from industry participants (both written
                                                                                                                                                          and verbal).
AgriFutures Australia receives the R&D levy allocation                                                                                               •    Preparation of the final Plan.
to invest in line with the objectives of the Program’s
Strategic RD&E Plan. AgriFutures Australia also receives                                                                                             AgriFutures Australia is committed to achieving significant
matching funding* from the Australian Government,                                                                                                    benefits to industry with available resources through
which is allocated to the Program at 50c per dollar of                                                                                               the implementation of targeted and high-impact RD&E
eligible expenditure.                                                                                                                                projects. The consultation process highlighted several
                                                                                                                                                     issues that the kangaroo industry considers roadblocks
The R&D levy allocation totals about $60,000 per annum.                                                                                              to growth and development. Of these impediments, those
When combined with Australian Government matching                                                                                                    that can be addressed with targeted RD&E have shaped
funding, the Kangaroo Program has about $80,000-                                                                                                     AgriFutures Australia’s investment priorities for the next
$90,000 per annum to invest.                                                                                                                         five years.

*AgriFutures Australia receives matching funding from the Australian Government, calculated under the Primary Industries Research and
Development (PIRD) Act. Subject to some limitations, this Commonwealth matching funding is capped at the lesser of 50% of eligible expenditure or
0.5% of industry gross value of production (GVP). Industry GVP is calculated on the aggregate of all AgriFutures Australia levied industries.
AgriFutures Kangaroo Program Strategic RD&E Plan              2021-2026   21

AgriFutures
Kangaroo Program
Strategic RD&E Plan
2021-2026
Program goal

The goal of the AgriFutures Kangaroo Program is to invest
in research, development and extension projects that
help ensure the industry achieves the priorities set out in
this Strategic RD&E Plan.

Priorities of the Strategic
RD&E Plan 2021-2026

For this 2021-2026 Plan, the key priorities are:
Priority 1: The kangaroo industry’s licence to operate
is enhanced.
Priority 2: The consumer appeal of kangaroo products
is enhanced.
These priorities are underpinned by six key strategies.
These priorities and strategies will be reviewed as part of
AgriFutures Australia’s annual industry review process.
Further consultation and feedback will be sought from
stakeholders to adjust or amend priorities.
Allocation of funding for these priorities will also be
considered annually, as part of AgriFutures Australia’s
Annual Operating Plan (AOP). The AOP is available on the
AgriFutures Australia website at http://www.agrifutures.
com.au/about/corporate-documents/.
AgriFutures Kangaroo Program Strategic RD&E Plan                                                                         22   2021-2026                                                                                                                         23

AgriFutures Kangaroo Program
Strategic RD&E Plan 2021-2026

   1       Priority – The kangaroo industry’s licence to operate is enhanced

Strategy 1.1: Continuously focus on                            Indicative activities                                          Strategy 1.2: Demonstrate the sustainability                           Indicative activities
enhancing animal welfare outcomes                                                                                             credentials of the industry
                                                               • 1.1.1 Compile the scientific information available on the                                                                           • 1.2.1 Compile the scientific information available on
                                                                 industry’s animal welfare practices (desktop exercise).                                                                               the sustainability of the industry (desktop exercise)
Justification                                                  • 1.1.2 Compare the animal welfare credentials of the          Justification                                                            and develop a counterfactual piece of research – ‘What
                                                                                                                                                                                                       would the environmental and biodiversity impacts be if
                                                                 kangaroo industry with other animal-based proteins.
The demonstration of sound animal welfare practices                                                                           The demonstration of sustainability is critical to the                   kangaroos were not humanely harvested?’
is critical to the industry’s social licence to operate. The                                                                  kangaroo industry having a social licence to operate. On
industry has a positive animal welfare story to tell, but                                                                     welfare, the industry has a positive sustainability story to
                                                               Key performance indicators
it must be able to present the scientific evidence to                                                                         tell – in fact, sustainability is a key point of differentiation for   Key performance indicators
support it. Ideally, the industry would gain endorsement                                                                      kangaroo meat. However, consumers and the public are not
of its animal welfare practices from a credible Australian     •   Scientific evidence is compiled and is a standard          generally aware of this message and are assailed by groups             •   Scientific evidence on industry sustainability
or international organisation, and this is an industry             sufficient to gain third-party endorsement of the          putting the opposing perspective.                                          is compiled.
aspiration – but the industry recognises the challenges of         industry’s animal welfare practices.
obtaining such endorsement.

                                                               Measurement                                                                                                                           Measurement

                                                                                                                                                                                                     •   Scientific evidence is available on the AgriFutures
                                                               •   Scientific evidence is available on the AgriFutures
                                                                                                                                                                                                         Australia website and is being accessed by industry
                                                                   Australia website and is being accessed by industry
                                                                                                                                                                                                         participants and the general public.
                                                                   participants and the general public.
AgriFutures Kangaroo Program Strategic RD&E Plan                                                                         24   2021-2026                                                                                                                  25

AgriFutures Kangaroo Program
Strategic RD&E Plan 2021-2026

   1       Priority – The kangaroo industry’s licence to operate is enhanced                                                     2        Priority – The consumer appeal of kangaroo products is enhanced

Strategy 1.3: Undertake effective                             Indicative activities                                           Strategy 2.1: Identify the nutritional value of             Indicative activities
communications and extension                                                                                                  kangaroo meat
                                                              • 1.3.1 Distribute final reports and easily digestible                                                                      • 2.1.1 Undertake nutritional studies on kangaroo meat.
                                                                summary information about activities undertaken.
                                                                                                                                                                                          • 2.1.1 Compile scientific information on the nutritional
Justification                                                 • 1.3.2 Distribute updates on work being undertaken and         Justification                                                 benefits of kangaroo meat to support marketing activities.
                                                                progress made towards targets.
There is a need for the outcomes from R&D within this Plan                                                                    Studies have been conducted on the nutritional attributes
to assist with improving perceptions of the industry and      • 1.3.3 Undertake targeted market research to assess            of kangaroo meat, and these have demonstrated health
product. Ongoing support for industry-funded R&D, and the       impacts on industry and product perceptions.                  benefits such as low-fat content. There is an opportunity   Key performance indicators
adoption of its outputs, rely upon widespread awareness of                                                                    to conduct further studies that focus especially on
the industry program and what it delivers for the industry.                                                                   micronutrients such as conjugated linoleic acid and         •   Nutritional benefits of kangaroo meat have been
                                                                                                                                                                                              identified for promotion by industry players.
                                                              Key performance indicators                                      omega-3 fatty acids, where preliminary data has shown
                                                                                                                              positive results.
                                                              •   Targeted market research shows an improved
                                                                  consumer perception of the industry and                                                                                 Measurement
                                                                  kangaroo products.
                                                                                                                                                                                          •   Studies are published on the AgriFutures Australia
                                                              •   80% of stakeholders in the kangaroo industry are well-
                                                                                                                                                                                              website and disseminated, and are being accessed by
                                                                  informed of the activities and outcomes of this Plan.
                                                                                                                                                                                              industry participants and the general public.

                                                              Measurement

                                                              •   Market research data is available on the AgriFutures
                                                                  Australia website and is being accessed by industry
                                                                  participants and the general public.
                                                              •   Stakeholder survey data shows 80% of kangaroo
                                                                  industry stakeholders are well-informed of the
                                                                  activities and outcomes of this Plan.
AgriFutures Kangaroo Program Strategic RD&E Plan                                                                           26   2021-2026                                                                                                                    27

AgriFutures Kangaroo Program
Strategic RD&E Plan 2021-2026

   2       Priority – The consumer appeal of kangaroo products is enhanced

Strategy 2.2: Demonstrate the food safety                        Indicative activities                                          Strategy 2.3: Enhance value through                             Indicative activities
credentials of the industry                                                                                                     improved product specifications
                                                                 • 2.2.1 Research the effects of gamma irradiation on                                                                           • 2.3.1 Research the factors (cut, type of animal, area of
                                                                   kangaroo meat and other interventions as required for                                                                          origin) that affect the eating quality of kangaroo meat.
Justification                                                      market access.                                               Justification                                                   • 2.3.2 Review the approaches taken in other wild-
                                                                 • 2.2.2 Promote the hygiene practices and food safety                                                                            kill industries to determine product specification
The kangaroo harvest involves a high standard of hygiene.          credentials of the kangaroo meat chain.                      There is a standard set of cuts for kangaroo meat, but they       and differentiation.
Despite this, and especially because kangaroos are wild                                                                         are much less sophisticated than those of other meats,
harvested, the industry must be able to demonstrate                                                                             such as beef. In addition, there is little product grading to   • 2.3.3 Develop a product specification and grading
rigorous attention to, and achievement of, high standards of                                                                    support marketing on the basis of cooking method or eating        framework suitable for the industry.
food safety. There are specific market access requirements       Key performance indicators                                     quality outcomes – like the type provided by Meat Standards
(such as gamma irradiation to reduce microbial load in                                                                          Australia for beef and sheep meat. This constrains industry
                                                                 •   Scientific data is generated to satisfy regulators
product exported into the US), and the suitability of kangaroo                                                                  efforts to attract higher prices for premium kangaroo meat      Key performance indicators
meat for interventions that enable market access must be             that gamma irradiation is a safe treatment for             products, and increases the risk of a poor eating experience
established separately to that of other meats.                       kangaroo meat.                                             among consumers.                                                •   Product specifications are determined that support
                                                                 •   Marketing activities demonstrate the whole-of-chain                                                                            eating quality assurance claims.
                                                                     safety of kangaroo meat.

                                                                                                                                                                                                Measurement
                                                                 Measurement
                                                                                                                                                                                                •   Product specifications are available on the AgriFutures
                                                                 •   Industry regulators accept that gamma irradiation is a                                                                         Australia website and are being accessed by industry
                                                                     safe treatment for kangaroo meat.                                                                                              participants and the general public.
                                                                 •   Information about the whole-of-chain safety of
                                                                     kangaroo meat is available on the AgriFutures Australia
                                                                     website and is being accessed by industry participants
                                                                     and the general public.
AgriFutures Kangaroo Program Strategic RD&E Plan                28   2021-2026                                                                                                              29

Plan implementation                                                  Monitoring, evaluation and
and governance                                                       reporting (MER) framework

Implementing the plan                                                Alignment with the AgriFutures Australia                   Measuring the progress of the industry
                                                                     MER framework                                              and the Plan
It is critically important that the kangaroo industry
has representation with AgriFutures Australia in                     A monitoring, evaluation and reporting (MER) framework     Most outputs arising from this RD&E Plan will be in the
the implementation of this Plan and the oversight                    developed for the Kangaroo Program is outlined in Table    form of research reports or product specifications (animal
of its performance.                                                  5. The framework is aligned to the AgriFutures Australia   welfare, sustainability, nutritional value, food safety,
                                                                     MER framework, which provides a standardised ‘logic’ to    product value) that can be used to effect change for the
With this in mind, the AgriFutures Kangaroo Program                  describe how inputs are used to generate benefits from     betterment of the industry. The exceptions are data on
will have a Research Manager and Research Coordinator                RD&E investments.                                          stakeholder awareness of industry activities and outcomes
committed to it. The Research Manager will work with the                                                                        and targeted market research to determine whether
Kangaroo Industry Association of Australia (KIAA) and other                                                                     industry developments have impacted perceptions. These
relevant stakeholders to implement and govern this Plan,                                                                        would need to be captured by an industry survey and
run the RD&E open call process, assess project proposals                                                                        targeted market research, respectively.
and monitor project progress.
                                                                                                                                Going forward, outputs arising from this Plan will also
Where required, AgriFutures Australia will engage suitable                                                                      help AgriFutures Australia, KIAA and stakeholders with
expertise to ensure proposals align with, and help achieve,                                                                     developing benchmarks to enable ongoing evaluation (e.g.
the priorities contained in this Plan.                                                                                          with regards to public perception of the industry, product
                                                                                                                                specifications and grading).
In implementing this Plan, AgriFutures Australia and the
KIAA will also:
                                                                                                                                It is important that the Strategic RD&E Plan is reviewed
                                                                                                                                periodically to assess whether satisfactory progress is
•    Encourage collaboration among harvesters,
                                                                                                                                being made to meet the identified KPIs, and whether
     processors, stakeholders, researchers and
                                                                                                                                the KPIs themselves are still the most appropriate
     government organisations.
                                                                                                                                ones. AgriFutures Australia will complete a mid-term
                                                                                                                                review of the Plan towards the end of year three (2024).
•    Progress the high-priority elements of the Plan.
                                                                                                                                The outcomes of the review will be formally reported to
                                                                                                                                stakeholders and an action plan implemented to rectify
•    Communicate the progress and outputs of projects
                                                                                                                                any deficiencies.
     and how they achieve the priorities set out in the Plan.

                                                                                                                                AgriFutures Australia will also complete a further review
                                                                                                                                towards the end of the Plan. The outcomes of this review
                                                                                                                                will be incorporated into the development of the 2026-
                                                                                                                                2031 Plan.
AgriFutures Kangaroo Program Strategic RD&E Plan                                                                                 30   2021-2026                                                                                                                  31

Monitoring, evaluation and
reporting (MER) framework

Table 5: AgriFutures Kangaroo Program monitoring, evaluation and reporting (MER) framework

Priorities                 Indicative activities                      KPIs                             Measurement                    Priorities          Indicative activities                      KPIs                              Measurement

                           •    1.1.1 Compile the scientific          Scientific evidence is           Scientific evidence                                •   2.1.1 Undertake nutritional            Nutritional benefits of           Studies are published
  1                             information available on the          compiled and is a standard       is available on the              2                     studies on kangaroo meat.              kangaroo meat have been           on the AgriFutures
                                industry’s animal welfare practices   sufficient to gain third-party   AgriFutures Australia                                                                         identified for promotion by       Australia website and
                                (desktop exercise).                   endorsement of the industry’s    website and is being                               •   2.1.2 Compile scientific               industry players.                 disseminated, and
The kangaroo                                                                                                                          The consumer            information on nutritional
                                                                      animal welfare practices         accessed by industry                                                                                                            are being accessed by
industry’s licence to      •    1.1.2 Compare the animal welfare                                                                      appeal of               benefits of kangaroo meat to
                                                                                                       participants and the                                                                                                            industry participants
operate is enhanced             credentials of the kangaroo                                                                           kangaroo products       support marketing activities.
                                                                                                       general public.                                                                                                                 and the general public.
                                industry with other animal-based                                                                      is enhanced
                                proteins.
                                                                                                                                                          •   2.2.1 Research the effects of          Scientific data is generated to   Industry regulators
                                                                                                                                                              gamma irradiation on kangaroo          satisfy regulators that gamma     accept that gamma
                           •    1.2.1 Compile the scientific          Scientific evidence on           Scientific evidence                                    meat and other interventions as        irradiation is a safe treatment   irradiation is a safe
                                information available on the          industry sustainability          is available on the                                    required for market access.            for kangaroo meat.                treatment for kangaroo
                                sustainability of the industry        is compiled.                     AgriFutures Australia                                                                                                           meat.
                                (desktop exercise) and develop                                         website and is being                               •   2.2.2 Promote the hygiene              Marketing activities
                                a counterfactual piece of                                              accessed by industry                                   practices and food safety              demonstrate the whole-            Information about the
                                research – ‘What would be the                                          participants and the                                   credentials of the kangaroo            of-chain safety of                whole-of-chain safety
                                environmental and biodiversity                                         general public.                                        meat chain.                            kangaroo meat.                    of kangaroo meat
                                impacts if kangaroos were not                                                                                                                                                                          is available on the
                                humanely harvested?’                                                                                                                                                                                   AgriFutures Australia
                                                                                                                                                                                                                                       website and is being
                                                                                                                                                                                                                                       accessed by industry
                           •    1.3.1 Distribute final reports        Targeted market research         Market research data
                                                                                                                                                                                                                                       participants and the
                                and easily digestible summary         shows an improved consumer       is available on the
                                                                                                                                                                                                                                       general public.
                                information about activities          perception of the industry and   AgriFutures Australia
                                undertaken.                           kangaroo products.               website and is being
                                                                                                       accessed by industry                               •   2.3.1 Research the factors (cut,       Product specifications are        Product specifications
                           •    1.3.2 Distribute updates on work      80% of stakeholders in the       participants and the                                   type of animal, area of origin)        determined that support eating    are available on the
                                being undertaken and progress         kangaroo industry are well-      general public.                                        that affect the eating quality of      quality assurance claims.         AgriFutures Australia
                                made towards targets.                 informed of the activities and                                                          kangaroo meat.                                                           website and are being
                                                                      outcomes of this Plan.           Stakeholder survey                                                                                                              accessed by industry
                           •    1.3.3 Undertake targeted market                                        data shows 80% of                                  •   2.3.2 Review the approaches taken                                        participants and the
                                research to assess impacts on                                          kangaroo industry                                      in other wild-kill industries to                                         general public.
                                industry and product perceptions.                                      stakeholders are                                       determine product specification
                                                                                                       well-informed of the                                   and differentiation.
                                                                                                       activities and outcomes
                                                                                                       of this Plan.                                      •   2.3.3 Develop a product
                                                                                                                                                              specification and grading
                                                                                                                                                              framework suitable for the industry.
AgriFutures Kangaroo Program Strategic RD&E Plan   32

AgriFutures Australia

Building 007
Tooma Way
Charles Sturt University
Locked Bag 588
Wagga Wagga NSW 2650

02 6923 6900
info@agrifutures.com.au

agrifutures.com.au
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