WITH about 70 per cent of our beef production exported to over 100 markets, Australia’s $16 billion beef industry operates in highly competitive global markets subject to diverse needs and consumer demands.
Meat & Livestock Australia (MLA) is building global competitiveness through its Global Markets Strategy using market intelligence and consumer, trade and economic insights to pinpoint the best prospects for our product and ensure targeted spend of levy dollars.
The challenge in global markets is ensuring we are able to deliver on the needs of our consumers.
We are facing significant competitor pressures in key markets, which are creating headwinds for the industry.
The United States has increased beef production and is targeting our traditional strongholds of Japan and Korea.
South America also continues to gain improved access to international markets and is raising its profile targeting pasture/grassfed segments, while providing a low cost product into many markets.
There is also a complex mix of trade restrictions that affect our ability to trade freely in global markets and some markets are increasing protectionism, such as in the US under the Trump administration.
Despite the challenges, there are many opportunities for increasing our share in the global market.
Asia’s growing middle class means the number of consumers who can afford to eat beef will continue to grow.
There is still a strong free trade agenda at play.
In March, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP-11) was signed in Chile, despite initial concerns it wouldn’t proceed after the US withdrew from the agreement in January 2017.
This free trade agreement between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam will help ensure the Australian red meat supply chain remains internationally competitive with more seamless trade rules, reduced costs and less red tape.
MLA invests significantly in adopting and implementing the right strategy for each market, with $43 million planned for investment in 2018/19.
Find out how MLA’s international team of in-market experts are growing demand for Australian beef at the 2018 Global Markets Forum at Beef Australia 2018. To register for this free event, visit:
beefaustralia2018.mla.com.au
p Michael Finucan is MLA General Manager for International Markets.
