Harmony Agriculture & Food Company offers a different supply chain model than other live export companies.
Setting itself apart from other exporting companies, Harmony has developed its own integrated business with both on-shore and off-shore processing operations supplying multiple products to clients in various countries.
With a focus on Australian processing and sales of boxed meat into domestic markets and export markets including China, Harmony chief commercial officer Anthony Fellows said the company also has a strong focus on the supply of stock for off-shore processing in China.
Speaking on the eve of its second consignment of premium live cattle from Portland last week, Mr Fellows said Harmony had established a “China-first” model.
“The Harmony model provides the flexibility to supply a wide range of products to China – from the commodity end to high-quality grain-fed – with actions in place for Wagyu product,” Mr Fellows said.
“But it’s not about shipping all our product to China for processing.”
By incorporating a domestic processing program into its model, it provides continuity that can deliver product into various markets on an ongoing basis.
He said this complimentary programs were advantageous when there were seasonal conditions which affected consistent supply.
“With a domestic processing program in place it provides the flexibility to place beef into the domestic market,” he said.
“Likewise, if the demand for product favours off-shore processing, we will have a solid base of supply in the system for some of those cattle to be streamed into live-ex and the off-shore processing program.”
Mr Fellows said that Harmony is hopeful of shipping live upwards to 15,000 cattle in 2018.
That number would grow significantly annually.
Consignments of 2500 head would be conducted on a six-week rotation.
That means Harmony will require significant livestock numbers across its supply, matched with reliable assets to prepare the cattle.
The company does not need to own all of its own all and production assets or all of the cattle across the supply chain.
“Relationships with other graziers, feeders and suppliers are critical to our success and its an important part of what we mean by an integrated business model,” Mr Fellows said.
Third-party operators help to provide the stability and grow opportunities for their businesses, managing risks for both parties through long term plans, consistent production and reliable demand.
What Harmony is attempting to achieve is reliability through consistency and efficiencies through shared supply chain opportunities and alliances.
