Quality Matters: Market premium or Market entry

Story by: Tom Lewis

Is your commitment to quality demonstrated in a way that makes your customers go "WOW – that’s the product I want!"?

From a previous existence as business development manager for the Australian Food Safety Centre of Excellence, I learned that evolving market sophistication is leading to ever increasing demands on food producers. For example, it wasn't too long ago that having a rigorous and transparent food safety program would allow a food producer to attract a premium for their goods. These days, such a food safety plan is just the basis for entry into most markets.

This increase in market expectations is filtering through to other areas of business that affect product quality. Supply negotiations increasingly are including requests for verifiable information regarding the way we treat not only our product, but also our environment and our people.

A local example of a sector rising to meet this challenge can be found within the Tasmanian Abalone Council.

The vast majority of Tasmania's live abalone export (currently some 1200 tonnes per annum) is entering the Chinese market with little or no investment in marketing or value chain profitability. To address this issue, the Tasmanian wild-catch abalone sector is currently involved in a Chinese Market Research Audit which aims to inform the planning and implementation of a strategic branding, marketing and promotion program.

An integral part of this program will be a Quality Code of Practice, focussing on the activities and protocols required to maintain the quality of live abalone along the supply chain.

The Code will deliver two major outcomes to the TAC:

  • It will increase the quality assurance capability of the entire wild fishery live abalone supply chain.
  • It will demonstrate clearly this industry’s commitment to treating its product with exceptional care – during harvest, handling and export – to ensure that the abalone arrive at their destination in the best possible condition.

The Quality Code of Practice is being developed through a four stage process, designed to make full use of industry expertise and knowledge:

Stage 1 – What are the risks to quality?
Stage 2 – What can we do to manage those risks?
Stage 3 – How can we show our customers what we are doing?
Stage 4 – How can we help industry adhere to and improve these practices?

TAC is currently working on Stage 3 and is receiving support for this work through the Advancing Agricultural Industries Programme of the Australian Government Department of Agriculture, Fisheries and Forestry.

The ultimate aim of the TAC's Code of Practice, its associated Premium brand and the marketing efforts within China is to increase the profitability of Tasmanian participants in the live abalone supply chain. Whether this occurs through attracting a premium price on live abalone exported under the Code, whether the Code acts to help Tasmanian product hold its place in an increasingly competitive market place, or whether it’s a combination of the two remains to be seen.

Nonetheless, the TAC has shown vision and leadership by acknowledging the need to document and codify the quality assurance procedures already used within the industry.

The TAC aims to demonstrate that the quality of live abalone harvested from Tasmanian waters is equal to the best in the world. The outputs from this project will be critical to that aim.

Tom Lewis manages the Seafood and Food Manufacturing Programs for Rural Development Services and can be contacted on 03 6231 9033 email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it