Premium Beef at Scale with Andrew McDonald and Tony Fitzgerald from NH Foods

In this episode of The Angus Table, host Scott Wright sits down with Andrew McDonald and Tony Fitzgerald from NH Foods for a comprehensive conversation about building and maintaining premium beef programs at scale. They discuss the remarkable 15 year growth of Angus Reserve brand from 300 head/week to 3,000 head/week, the measurable genetic improvement delivering 10% increase in feeding performance, navigating China market volatility with 55% tariffs forcing strategic program adjustments, the protein trend driving retail growth globally, and why Australia must compete at the premium end against low-cost producers. Tony shares insights on cattle quality improvements, vaccination programs reducing BRD from 60% to 15-20% of death loss, and the importance of consistency. Andrew explains secondary cut value growth, the shift from 2+ to 4+ and 5+ marbling programs, and diversification across 40-45 countries. So pull up a chair at the Angus Table for insights from one of Australia's largest Angus beef operations.Key topics covered:How NH Foods established itself in Australia from late 1970s with integrated farming, feedlotting, and processing operationsThe growth of Whyalla Feedlot to 78,000 head current capacity, with recent and planned expansionsThe evolution of the Angus Reserve brand from 300-400 head/week in 2010 to 3,000 head/week today across 40-45 countriesThe measurable genetic improvement over the last 8 years that has delivered 10% increase in feeding performanceHow consistency within Angus pens compares dramatically to crossbred variationWhy average induction weight increased from 405-410kg (2019 drought) to 455kg with better seasonsThe results of vaccination programs (BRD reduced from 60% to 15-20% death loss) and the shift from 2+ to 4+ and 5+ marbling programsThe challenges of the China market, including 55% tariffs and a quota system forcing five months supply vs year-round, meaning uncertainty for long-fed programsSupporting voluntary quota system in order to prevent South American grain-fed gaining Australian shelf spaceThe importance of diversification to hedge against single market dependence in volatile global politicsHow secondary cut value growth saved the processing sector (beef cheeks doubling, tails over $20/kg, short rib bone-in $50/kg) The protein trend driving retail growth globally, with consumers cooking premium steaks at home and beef snacks like jerky an opportunity for those who don’t cookThe challenge of oversized cuts having weight variations affecting container capacity and box specificationsHow third-party verification through Angus Australia provides integrity and retailer governance confidenceThe success of Whyalla’s graduate program: three grads annually, DISC profiling, structured six-month rotations building team depthWhy Australia must compete at the premium end against low-cost producers with the best 5% of global herd targeting best 2-4% of consumersPull quotes:"We're processing around 3,000 head a week of Black Angus cattle, predominantly packed under Angus Reserve brand….What started as 300-400 head a week is now closer to 3,000." - Andrew McDonald "I can prove mathematically on paper year-on-year improvement in feeding KPIs. Over eight years we've seen upwards of 10% increase in feeding performance purely on weight gain variability within cattle …That's why I'm such a big fan of the Angus breed." - Tony Fitzgerald"We started the program as 2+ to capture that market, but around six years ago we brought in a 4+ program because there were just so many cattle outperforming over that grade. Then for China HGP-free we're doing 5+ programs. We've really seen those outcomes continue to improve." - Andrew McDonald"Secondary cuts are probably what saved the Australian processing industry. [They] absorbed enormous cost increases with power, water, labour over last five years. I still look at amazement when I see beef feet going through the abattoir.” - Tony Fitzgerald"The big buzzword around the world is protein. Every healthy diet headlines starts with protein. We've gone from fats being the devil to ultra-processed food being that item. [Consumers since COVID] are trading down from restaurant experiences…cooking better quality steaks at home. Retail is going gangbusters globally." - Andrew McDonald"Keep doing what you're doing. At any given time beef industries are always under some economic pressure from Brazil, from everywhere. We need to be better all the time. Everything we can do to be a winner needs to be done. It starts with guys and girls making decisions selecting which bulls go with which cows." - Tony Fitzgerald“Australia's never going to be lowest cost denominator supplying to customers. The danger is drifting into cross hairs with Brazil on quality-price matrix. What can Australia do better than everyone else? Angus Reserve and those programs give us the edge... We want to be fighting at the premium end of town. We want to find the best 2-4% ...