Teys Australia’s new flagship beef brand 36° South, produced exclusively at its Naracoorte abattoir, is quickly becoming the toast of the region.
Just two months after its launch, 300 head a week are being processed into the brand for domestic and overseas customers and Teys hopes to more than double this in the coming year.
It won a silver medal in the prestigious World Steak Challenge with 36° South and is about to launch it into the Chinese market where one of Australia’s largest meat processors sees big opportunities.
The brand draws on the plant’s close promixity to the world-class Coonawarra wine region and reputation for producing some of the nation’s best grassfed beef.
There is no specific grid for 36° South, with the company instead diverting the highest eating quality carcases from its Grasslands, Meat Standards Australia and grainfed programs.
The HGP-free product has been a major driver in the $30-million investment in the plant announced in June and at last week’s producer day at Naracoorte the company provided more details on the upgrade.
It includes increasing the chiller capacity to hold 160 carcases and a marshalling area to grade 400 carcases prior to them entering the boning room.
This is expected to be completed by mid-2020 at a cost of about $10m.
It will also spend more than $5m in its boning room installing new Illapack vacuum packed machines and drying tunnels.
It has also begun its $7.7m covered anaerobic lagoon and biogas system, which should provide 30 per cent of the plant’s power needs.
Teys Naracoorte general manager Lachlan Teys is excited about the plans, which will see throughput grow from 720 to 805 head a day.
He says 36° South is a big part of the Naracoorte plant’s future.
“We are getting some really good feedback from our wholesalers in each of the capital cities saying they love the quality of the product and presentation,” he said.
Teys has produced a series of videos highlighting the passion of some of its suppliers, which Mr Teys says will help consumers connect with the brand.
“It is a pretty good story to tell down here of good pastures, good cattle and all the farming families that become part of the story,” Mr Teys said.
Teys Australia chief value chain officer Tom Maguire says the 36° South brand is also improving the utilisation of top quality MSA-graded carcases. At the moment, a significant proportion of the cuts from these carcases are not being utilised within the system.
Mr Maguire says it has been special to see how the Naracoorte workforce had gained a strong sense of ownership of the brand.
“There are people on plant dedicated to getting this right all the time – they know if it appears anywhere in the country or anywhere in the world this is where it comes from,” he said.
Livestock buyer Jake Phillips has moved into a new role as strategic supply chain manager, overseeing the brand’s integrity and growth.
Mr Phillips says the point of difference is it is based on eating quality, rather than being breed or feed specific.
“It is about identifying the best-of-the-best producers who have the best-of-the-best product,” he said.
“They are going to have success in terms of demand for their product but at this stage we are not sure what that will mean for returns, but it has to be good.”
Mr Phillips says the high MSA index cut-off ensures it is not necessary to have a long list of other criteria.
“To be a high quality product it needs to come from a high quality animal and the things you need to do for this are outstanding animal welfare, nutrition and breeding management, so if you are not doing one of those things you won’t make the product.”
