SLICKER competitors, protectionism and changing consumer sentiment are the big challenges facing Australian beef on the global stage but there are also some solid opportunities presenting.
A robust United States economy, the emerging middle class in Asia and Australia’s free trade successes are at the top of the list but international market experts at Beef Australia have also outlined a host of consumer trends that point to an optimistic future.
The key message is we need to understand, monitor and act strategically on those trends, according to Meat and Livestock Australia’s team.
MLA’s international managers from Europe, the US, South East Asia, China, the Middle East and North Africa and Korea and Japan flew in for a global markets forum at the big Rockhampton event this week.
Given Australia’s beef and cattle exports amount to $9.27 billion worth of income each year, comprehensive insights into our key markets are keenly sought.
Australia is a global player in beef so we have to know who our consumers are and where trends are taking us, according to MLA general manager international markets Michael Finucan.
North Asia, particularly Japan and Korea, account for 50pc of that income, North America 20pc and South East Asia - a diverse range of markets with very complex consumers - 20pc.
Europe is far smaller but it is our highest value market.
Mr Finucan said competitors were getting better at producing beef and better at telling their story.
“Indian product is aflush across our markets. They continue to get better market access and enter our key markets, particularly in South East Asia and the Middle East,” he said.
“US product too is on a significant incline and typically hits our two most important markets, Japan and Korea.”
Trump’s trade restrictions, meanwhile, will reverberate across the global economy and affect our markets - protectionism is a key issue affecting the fortunes of Australian beef exporters.
And we have to be able to respond quickly to disruptions to our market access, such as last year’s suspension of six Australian plants by the Chinese over labelling issues, because these are ongoing and hit the bottom line hard.
The good news is Australia has had some great success in free trade deals with major beef buyers including Japan, Korea and China, which give us solid advantages over competitors.
Add to this the signing of a Trans-Pacific deal without the US and we will realise further gains, Mr Finucan said.
“Meanwhile the US economy is travelling very well and the more money people have in their pockets, the more they will eat their own beef and also ours,” he said.
“In Asia, growing numbers of consumers earning over US$35,000 a year are moving up the protein chain to imported beef.
“In China alone, this segment will double in the next four to five years.”
- Full reports on individual markets to come.
Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
