February 18, 2008

Market campaigns help Australia's red meat demand climb to record levels
 

Australia's red meat demand strengthened in 2007, with values rising 4 percent to a record AUS$9 billion thanks to marketing campaigns, a healthy economy and cheaper prices.

The greatest increase was seen in lamb meat, which grew US$187 million while beef grew US$122 million.

Despite its recent success, red meats could still face competition from cheaper meats at retail and prolonged drought.

The domestic market continues to be the largest and most stable market for Australia's red meat, with red meat consumption at 1.1 million tonnes cwt in 2007, up 6 percent on 2006.

Lamb sales grew strongly on the back of marketing campaigns Lamb volumes increased by 11 percent in 2007, with retail prices down by 1 percent.

The results were mixed for beef and veal, with retail demand softening slightly from the highs of the last two years, but foodservice usage stronger.

Thanks to campaigns, spending on beef rose 2 percent to AUS$6.6 billion while volumes were up 3.1 percent on lower prices.