In this instalment of our series ‘Meat the Supplier’ we sat down with Felicity Coventry (nee Hennessy), GM Strategic Sourcing and Producer Partnerships at Woolworths’ red meat supply business, Greenstock.
Read on to hear about Felicity’s work in Greenstock’s operations and her insights into the supply chain and wider industry.
What is your role at Greenstock and where are you based?
I am General Manager of Strategic Sourcing and Producer Partnerships at Greenstock, based in Sydney. Our livestock team is based regionally to allow them to work closely with our farmers; of which we partner with around 2,500 per year. We are very fortunate with the depth of experience (combination of over 100 years) and the quality of relationships that the team holds in the market.
How long have you been in the industry, and have you spent time in other parts of the supply chain?
I grew up in the Western Districts of Victoria, South-East and Mid North South Australia, before arriving in Adelaide into agribusiness trading derivatives on the Elders’ risk management trading desk. During my time at Elders, I was fortunate enough to be involved in trading one of the last cattle futures contracts, which was a great grounding in how the livestock market works domestically and globally.
Other experience as a farmer in cropping has provided a lot of learning about water use efficiencies, managing a margin and ultimately trying to predict the weather!
I also spent time at RuralCo, in numerous roles, These included acting CEO for a grain’s accumulation and marketing business and in the procurement of ag chem, fertiliser, animal health products and general merchandise. I went into GrainCorp from there and am now fortunate to be working alongside our farmers, feedlots and buyers across beef and lamb for Greenstock.
This is the first time in my career where I have had the privilege to be in a role which closely connects the farmer and the consumer and I am excited about the opportunity to share with our customers the amazing care, quality and sustainability our suppliers deliver every day.
How does Greenstock operate in relation to the Woolworths supermarket business?
We are Woolworths’ standalone red meat supply chain business responsible for supplying the availability and high-quality beef, lamb and pork for our customers daily. Greenstock plays a crucial role in bringing fresh meat to your local Woolworths shelves 365 days of the year. For 40 years, Woolworths has cultivated direct, multi-generational partnerships with Australian farmers, also collaborating with processors and manufacturers to add value to our meat products.
Meat is a major reason customers choose one supermarket over another, second only to fruit and vegetables. This means consistent quality, availability and value are critical. Greenstock helps us achieve this by focusing on getting fresh meat to you every day, no matter which Woolworths store you visit across Australia.
Delivering on freshness, especially for products like mince with an 11-day shelf life, demands incredibly efficient logistics. Greenstock is instrumental in navigating this challenge, ensuring quick movement through the supply chain. Our lasting relationships with suppliers, many of whom have partnered with us for generations, are also key to this process.
Ultimately, Greenstock is the link that ensures the fresh meat you expect from your supermarket consistently makes it from farm to shelf.
What do day-to-day operations look like for you and your team – how do you get meat from farms to shelves across the country?
We start with demand 20 weeks out. As you can imagine, that can change all the time, right up to the day. If suddenly, the weather forecast changes and the sun comes out, we could sell out of our barbeque products quickly, for example.
We have a mix of spot and forward contracts depending on the farmers and feedlots needs. Our forward contracts provide our farmers with some certainty in terms of their margins. We are always in the market with rolling contracts and try to remain stable in the market to ensure our farmers have consistency of volumes and price.
Final bookings are confirmed two weeks out with a mix of day-before and same-day deliveries into our processors, depending on supplier location.
Processors operate from customised make sheets (production/boning instructions) that are created based on consumer demand and ensuring we maximise utilisation of the carcase. Our processing and quality team partner closely with the processors to ensure we deliver the quality, yield and consistency to our customers. Primals are then trucked by Primary Connect to our exclusive 3rd party manufacturing partners Hilton Foods Australia where they manufacture our case ready meat such as sausages, steaks and burgers.
Hilton has three secondary processing sites in Australia, and some of our other partners deliver value-add products like lasagne. Those products get picked at our secondary manufacturing site and sent to a Woolworths distribution centre the same day.
How have the last few months, with drought across southern Australia and floods in Queensland, impacted the way you do business and forecast demand?
The recent extreme weather, from droughts in the south to Queensland's floods, has definitely made things challenging. It means we can't just "set and forget" our plans; our production schedules are constantly adapting, sometimes week by week or even day by day.
The weather really shakes things up, impacting both supply and demand. For example, a heatwave might have customers craving barbecue, while a cold snap shifts them towards a roast. During the Queensland floods and Cyclone Alfred, we faced significant hurdles with processor shutdowns and road closures, making it incredibly difficult to move livestock.
Thankfully, our strong network and long-standing partnerships, especially with our farmers, help us manage and recover from these crises. We're able to come together quickly, adapt, and realign because of those deep, trusting relationships. We work together and stay true to our commitments, which is invaluable in tough times.
Our boxed meat model is also crucial. It allows us to top up on specific cuts, like steak, which are in much higher demand than their proportion in a whole carcass. This model is vital for us every day, but even more so during a crisis, ensuring we can still meet customer needs even when the unexpected happens.
How many processors do you use?
This is one of the things that really amazed me when I started in this role. We are servicing more than 1,100 stores across Australia, and we work with 12 primary processors across Australia, across cattle, sheep and pigs. Our processors are strategically located near to supply and manufacturing, so we limit movement of livestock and reduce trucking/food miles where possible.
In addition to those 12 primary processors, we utilise three secondary manufacturing sites in partnership with Hilton Foods, located in Bunbury WA, Truganina, Victoria, and Heathwood in Brisbane.
We also have other manufacturing partners who create bespoke and value-added products. So, it is quite a network that comes together to deliver the products our customers can purchase each and every day!
How many head of livestock do you process each year?
About 1.5 million head of lamb, 500,000 head of cattle and 750,000 head of pigs per year.
And we buy boxed meat on top of this to meet our demand requirements for specific cuts.
What is the biggest challenge in the livestock supply chain?
The biggest challenge in the livestock supply chain is effectively matching volatile supply with dynamic demand in a predominantly export market and in a fresh food environment, while ensuring consistent quality and value for the consumer.
The current global protein shortages, trade tariffs, and inflationary environments introduce significant uncertainty into pricing and availability. For countries like Australia, a high proportion (70 to 80 per cent) of beef and lamb is exported, making the domestic supply chain susceptible to global market shifts.
Our fresh red meat supply chain necessitates speed, agility, and precise inventory management to prevent waste and maintain quality and availability. Navigating these complexities requires seamless collaboration across the entire supply chain, from farmers and feedlots to processors, distributors, and retailers. Effective communication, nimble decision making, and creative problem solving are paramount to ensure availability, consistent quality, and value for consumers amidst market fluctuations.
What are some changes in the industry you have witnessed over time, particularly in relation to processing and consumption?
From a processing perspective the changes have been particularly significant in automation and robotics. An example is the TMS (Trim Management Systems) which are driving efficiencies and higher quality products. These systems alongside the increased focus on quality via MSA (Meat Standards Australia) continues to change how we source and process meat to ensure consistent eating quality for our customers.
From a consumption perspective, demand has increased for high quality Australian beef both domestically and internationally. Four years ago, the prediction was a decline in consumption of red meat and a shift to other proteins. This hasn’t happened. We are seeing beef consumption going from strength to strength as customers focus on health and high-quality protein.
We have also seen increases in the value-added segment; our customers are wanting value but are also time poor. While roasts are still in demand and still important, families these days don’t always have the time and are leaning more towards burgers and sausages. At the same time, they want those burgers to offer a steak-like eating experience, and sausages to be healthier. So, we’ve seen some interesting changes across those barbeque items.
Finally, what are some interesting facts about the supply chain or industry which farmers may not know?
- If you line up the sausages produced by Hilton Foods in a year, they will circumnavigate the planet!
- We package 5.8 million beef, pork and lamb items per week - that’s an extraordinary number.
- Our farmers will probably know this, but approximately 60 to 65 per cent of a carcass will go to retail in Australia and we export the remainder to more than 20 countries.
Finally, just the speed to market always amazes me. When mince has less than 11 days of shelf life, the second that animal arrives at the abattoir, it is all systems go to ensure we process and retain that freshness. Australians demand freshness, and we are so lucky because you don’t often get that in other parts of the world. It’s something we really need to hold onto.
