DESPITE growing competition in Australia's airfreight space, chilled airfreight is the best distribution method compared to fresh meat.
That's what Beaufort River Meats and Hillside Meat Processors livestock manager Harold Sealy told The National Agriculture Day business forum in Perth recently.
With Qatar, United Arab Emirates (UAE), Iran and Jordan traditionally the dominant destinations of Australia's lamb products, China has also increased its imports to 100 metric tonne per week in a very short space of time.
"We're starting to see some really good products going there, they're westernised, they're getting wealthier and they are likely to eat lamb," Mr Sealy said.
"There has also been a small growth of fresh meat into Saudi."
With the preference of Australia's export markets predominantly fresh meat, or the closest to it which is the chilled carcase, Mr Sealy said carcasses made up 73 per cent of the company's exports.
"Our customers want to be able to feel, see and touch the carcase and most of them would like to be able to take home a small carcase," Mr Sealy said.
"But we are seeing a small increase in the acceptance of our packaged products.
"There is a changing demographic and the acceptance of the product will come as the younger generation comes through, but the importer at the moment needs to be convinced of vacuum packaging lamb versus chilled."
While Australia's lamb air freight started in the 1980s with Gulf Air, lamb exports via air have now expanded from 5000t to about 60,000t annually.
"That's not including when our product goes via other hubs, we miss those numbers and it's very hard to find a destination total," Mr Sealy said.
Despite air freight being the quickest way to market, there are some risks and challenges posed by the distribution method.
With export products required to meet specifications in regards to quality and temperature, if the product falls outside of those agreed specifications, non payment will occur.
"Our reliance on a third party for distribution is where it's at, so that relationship and trust is paramount," Mr Sealy said.
"Air freight capacity is limited by the amount of passengers and what they carry.
"Quite often if a plane fills up, you could be left with a box of meat sitting back at the Coles store."
Mr Sealy said the Boeing 777 was the best plane for the company to export its products, with room for 45-50t of freight with bags, compared to the A380 which could only carry 44-45t total, limiting its scope.
"We used to have 34 direct flights out of here not that long ago, going to three ports with Etihad, Emirates and Qatar and now we have 14 flights to two ports," Mr Sealy said.
Political disruption in the Middle East has also created airspace restrictions between certain countries and as a result, more fuel is being used which has affected the cost of air freight.
"When Qatar fell out with Saudi, Egypt and the UAE, that changed the whole air freight world," Mr Sealy said.
"We lost routes and the ability to fully utilise Qatar to go to other markets, particularly the UAE and Saudi.
"Now Qatar, to fly to Jordan, has to fly around Saudi and I think it takes that flight which was originally two to two and a quarter hours, to about three and a half to four hours.
"We've lost Etihad, and with Qatar not being able to utilise all of the Middle East air space and ports, it makes it hard."
With the competition for airspace increasing, Mr Sealy said when the company couldn't get its product on a direct flight from Perth, they sometimes sent it via other Australian capital cities
"It's a logistical nightmare once you've used all of your direct flight space," he said.
"We use the Asian ports of Bangkok, Singapore and Hong Kong as well to get our meat through to the Middle East ports."
Mr Sealy said the company couldn't afford to compete with what some sectors were prepared to pay for their air freight, with a large proportion of Perth's air freight exports coming from the Perth Mint and Western Australia's lobster and flower industries.
"People don't want to wait for their products any more, so if they can afford it, they're prepared to pay whatever for it," Mr Sealy said.
In addition to airfreight costs, companies exporting their goods are required to meet certain security airline standards, which can also prove costly.
"We just had to put a fence around one of our abattoirs that cost a few hundred thousand dollars just to meet an airline standard," Mr Sealy said.