THE United Kingdom (UK) is an international market which offers great growth potential for Australian red meat exports.
That's according to Meat & Livestock Australia (MLA) group manager productivity and animal wellbeing David Beatty, who gave an Australian red meat market update at the MeatUp Forum, held on August 5 at The University of Western Australia.
"We have a very diverse marketplace and the domestic market is our biggest market, but globally we export 60-70 per cent of our red meat and it hits shelves and consumers in over 110 different countries," Mr Beatty said.
He said the UK was an exciting area for Australian producers and exporters with the Australia-United Kingdom free trade agreement (FTA).
The FTA has been agreed to in-principle, and once signed and ratified, Australian beef and sheep tariffs will be eliminated after 10 years.
In the meantime, during the transition period, Australia's market access will increase to a duty-free quota of 35,000 tonnes, increasing to 110,000t in the 10th year.
"That's incredible and will jump up over 10 years to 110,000t and that's a high value, very lucrative market for our exporters," Mr Beatty said.
"So that type of demand and value will be amazing for beef and it's not too dissimilar for sheep."
During the transition period, Australia will have sheep meat market access to a duty-free quota of 25,000t, increasing to 75,000t in the 10th year.
"It's an exciting place and shows that the demand outlook is very sound," he said.
Summarising the red meat industry from a global perspective, Mr Beatty said all the indicators were very good.
"Demand is very strong and Australia has a great brand and reputation globally," he said.
"People are willing to pay for quality and we sit in the higher quality, trusted red meat protein area.
"Consumers want to know where their products come from and we have the integrity systems to be able to do that - people want to understand even back to the property of origin, welfare and the environment and know their food comes from trusted and sustainable areas.
"So when you look at that, Australia is pretty well positioned and we have big chunks of the global population that are willing to pay for high quality red meat protein."
Currently the national cattle herd is at "record low levels, certainly since the 1990s", but with positive seasonal conditions, the national herd is expected to grow in the next few years.
"We are expecting to see adult slaughter hit a 25-year low at 6.9 million head (in 2021), as producers look to retain more cattle and we are expecting that rise again as the herd rebuilds," Mr Beatty said.
"(The outlook is) also similar with sheep because of the seasonal outlook and our ewe population is in good condition.
"In 2020 Australia recorded its lowest stock size on record, however with the seasonal conditions improving, particularly in the Eastern States, we are expecting to see key sheep growing regions increase their productivity, increase marking rates on the back of improved conditions and as people continue to build on the meat side of their businesses.
"So the forecast is that the sheep flock will begin a rebuild."
Lamb slaughter rates were also expected to increase in the next few years on the back of the flock rebuild.
As part of MLA's research and development (R&D), Mr Beatty said the organisation had a strong emphasis on promoting and marketing beef and lamb into overseas markets.
"There is a strategy or plan that sits behind that, which is targeted around the particular type of country and where we can add the most value," he said.
"So our programs globally sit around market access, business development or brand building, which is dictated to by the consumer, value and volumes going into those markets."
MLA's key targets for Red Meat 2030 (its industry 10-year vision) consist of doubling the value of Australian red meat sales and doubling the investment in adoption to achieve that impact.
Within that vision is CN30 - the aspirational goal to be carbon neutral by 2030 and "be the trusted source of the highest quality protein".
Mr Beatty said within the 10-year vision was a five-year plan and annual investment plans which actively check in on the five-year plan and adjust accordingly to make sure the industry is on track.
As part of CN30, MLA plans to invest heavily in sustainability.
"It's not just about (carbon) neutrality but also setting up a sustainable future, so looking after the land while maintaining productivity," Mr Beatty said.
"The investment areas are around emissions avoidance and carbon storage."
MLA has developed a program with the Department of Primary Industries and Regional Development (DPIRD), called SheepLinks, which is WA specific and similar to its current program BeefLinks.
SheepLinks is about maximising opportunities for WA sheep farmers given the changes in climatic conditions.
MLA is also doing animal welfare research by looking at subjective and objective measures of animal welfare, plus management of animals through the supply chain, then working through those measures to develop algorithms to provide an easy measure of lifetime animal wellbeing at the end of an animal's life.
"If you think about what that might mean for Australia from a consumer perspective, it links directly back to being a trusted source of red meat proteins," Mr Beatty said.
