The majority of Southern Rock Lobster harvest is exported to Asian markets – 95% of Australia’s 2,986 tonne harvest lands in these countries. However, these lengthy supply chains require enhancement, to protect the sensitive and temperature-dependent product and ensure that the end consumer receives a premium product. With price directly correlated to quality of the lobster, ensuring that a high-quality product is received by the end consumer has direct financial outcomes for Southern Rock Lobster stakeholders back in Australia.
The lobster processor does not control the supply chain, and loses visibility when the product is delivered to the freight forwarder. Brand image and product quality are being impacted by the inconsistencies in the packing and transporting of product. Recent developments in technologies, logistics, techniques, and best practice could transform the cold chain to ensure greater visibility and consistency of Southern Rock Lobster supply to Asia. Understanding best practice cold chain practices from other industries is crucial to upgrading the supply chain for Southern Rock Lobster to ensure product flows quickly and remains under strict temperature control. Each leg and handover needs to controlled, consistent and focused on quality to the end consumer.
Therefore, this cold chain review has been commissioned to investigate ways to improve the integrity of the end to end cold chain and reduce time to market. A consistently fresher less spoiled product will earn higher prices and build brand reputation for all Southern Rock Lobster members. The review will consider the use of better technologies for fresh food transport and handling. The review will also advise on policies and regulations to drive conformance and compliance.
Final report
The report aims to assist the Southern Rock Lobster (SRL) industry with refining the live export supply chain to China. Research has identified issues relating to the cold chain, particularly at the domestic air freight stage, and practical solutions have then been proposed to address them.
Project 2018-176 was commissioned in order to improve export outcomes for the SRL industry – with particular focus on exports to the Chinese market. Exporters have experienced increased issues relating to lobster mortality in the supply chain and maintaining effective temperature control, which has impacted upon returns to industry.
There are three key objectives that the research team agreed with Southern Rocklobster Limited and the FRDC at the start of the project. These were:
- Develop a full understanding of the supply chain for Southern Rock Lobster into export markets, to be able to pinpoint the key challenges faced in ensuring quality and maintaining temperature control.
- Understand the range of options for improvements to the export cold chain, considering best practice, technologies and efficiencies. This includes opportunities for temperature control, regulatory reform and collaborative infrastructure.
- Identify the innovations and initiatives likely to have the most significant impact on the quality of Southern Rock Lobster exports, and practically prioritise these for future implementation.
The research team followed four phases of work, designed to contribute to the project’s outcomes in a logical way.
- The first phase (2 weeks) focused on kicking off the project with confirmation of the research focus and the goals of the research. A collaborative kick-off meeting was conducted, and a review of background information and contact lists for stakeholder consults.
- The second phase (5 weeks) focused on reviewing the current value chain, with the research team speaking to/visiting 29 stakeholders to uncover pain points experienced by SRL exporters across the supply chain, and then conducting additional analysis to verify and add detail to the identified issues.
- The third phase (4 weeks) formulated a range of solutions to address identified supply chain issues. Each solution was workshopped, discussed with industry stakeholders to verify suitability, and researched.
- The fourth and final phase (2 weeks) focused on creating an implementation plan for the proposed solutions, with timelines and activities listed for Southern Rocklobster Limited and other industry stakeholders to action.
Southern Rock Lobsters (SRLs) are a premium, high value product, where the end product quality is a key indication of the performance of the export supply chain. Catch quality by fishers and subsequent handling must be effectively managed throughout the supply chain as the product is highly sensitive to poor handling and temperature variation during transit.
Issues
Solutions
Implementation work packages
The findings detailed within this report have implications for all stakeholders engaged across the SRL live export supply chain – particularly at the domestic end. SRL exporters in particular will need to action change if they are to realise the maximum benefits of the proposed solutions. This will range from minor initiatives such as AVE labelling, to significant endeavours such as fundamentally changing the way that supply chain transactions are managed and contracted.