May 29, 2007

Australia still optimistic on North Asian beef markets even with return of US beef 

Beef exporters in Australia are positive that it can withstand pressures on the re-entry of US beef in North Asian markets, particularly of Japan and South Korea, according to David Palmer, managing director of Meat and Livestock Australia Ltd on Monday (May 28).

Australia has filled in the beef gap when Japan and South Korea banned US beef due to bovine spongiform encephalopathy (BSE) found on American cow in December 2003.

Palmer said in a statement that Australia must stay confident in its beef trade to these key markets as US makes a gradual comeback.

Australia is the world's biggest beef exporter by value and the second biggest exporter by volume after Brazil, in a beef export trade that approaches A$5 billion annually. Australia's three major export markets, Japan, South Korea and the US, usually account for about 90 percent of total exports.

David Crombie, president of the National Farmers' Federation, agreed consumer fear or uncertainty isn't good for the industry.

He said a healthy competition should emerge and improve the qualities of beef products on exporting countries.

The hope is that North Asian consumers will return to a regular pattern of beef consumption that increases demand across the board and grows both markets, which contracted sharply during the US ban, said Crombie, who raises beef cattle in southern Queensland and is a former chairman of Meat & Livestock Australia.

Palmer said the Australian beef industry has been prepping up for the return of the US since the restrictions were imposed. Exporters are now focusing on the formation of strategic partnerships with Japanese and South Korean importers, food service companies and retailers, and boosting marketing and promotional campaigns.