January 13, 2006

Australia raises tax on cattle to boost beef sales

An increase in Australia's Cattle Transaction Levy went into effect on Jan 1 to fund new marketing initiatives and programmes for beef, both at home and abroad.

The levy will increase from A$3.50 to A$5.00, an increase of about 40 percent.

New marketing efforts are necessary to ensure that Australia addresses the changing trends in global beef demand, Meat and Livestock of Australia (MLA) said in a press release. MLA is the agency in charge of beef promotion and has launched several campaigns to encourage Australians to eat beef.

MLA's domestic marketing strategy is to reduce barriers to consumption. To achieve this, MLA will further develop the highly successful "Red Meat. Feel Good" campaign with new messages, more air-time and expansion to focus on key regional areas. It will also develop and launch other campaigns.

It will also work in international markets to highlight the Australian beef industry's quality, integrity, and supply consistency. It also plans to build stronger customer loyalty and make ruling Australian beef prices more palatable to consumers.

Japan is one of the top importers of Australian beef, but it is a market where Australian beef faces fierce competition. MLA said it would work to change Japanese consumers' aversion to frozen and chilled meat in the short term and further promote the image of Australian beef in the long run. Plans in the works include the development and launch of a Premium Australian Beef brand.