January 4, 2018
Australian beef exports face stiff competition in 2018
Australia's beef exports are expected to slightly increase to just over 1 million tonnes in 2018 as they compete in a global market awash with beef, according to Meat & Livestock Australia (MLA).
MLA said Australian beef has to contend with competitors including the US, Brazil and India.
US beef production, for example, is expected to increase 4.6% with exports increasing by 4% in 2018, according to the USDA's forecast which, if it proves to be accurate, would be the US's biggest ever production year for beef. "This will see increased competition in key export markets, specifically Japan and Korea", MLA explained.
Brazil is also expected to increase production with corresponding availability of export beef. "While Brazil continues to be restricted in some of Australia's major markets such as the US, Japan and Korea, they will continue to be a price setter in the more commodity-driven sectors in the Middle East and China, which sets a baseline for these markets".
The Indian herd is likewise forecast to increase, driven in most part by the domestic growth in the dairy sector. "This will see the continued increase in buffalo meat presence in key markets for Australia, particularly in the Middle East and in southern Asia" MLA said.
MLA said that with the increased supply, global beef prices will come under pressure, reinforcing the need for Australia to continually position itself as a superior supplier of high-quality product.
MLA believes that Australia remains well positioned to continue to grow in the two critical markets of Japan and South Korea as grainfed exports to these markets remain strong. "Australia's reputation as a clean green supplier still underpins the demand from local supermarket shoppers that want a trusted product for their family", it said.