July 31, 2009

Australia is looking to expand its beef exports to key markets such as Indonesia, Russia and the Middle East.

Australia's ability to produce surplus supplies would underpin its efforts to open export markets, said Meat & Livestock Australia (MLA) managing director David Palmer, noting that one of the most promising markets for the future of Australian beef is Indonesia.

Palmer said there are 230 million Islamic beef consumers and the market is predicted to grow by another 27 million by 2015. To meet this demand, Australia needs to produce an extra 45,000 tonnes of beef, he said.

MLA will be opening an office in Jakarta to create more opportunities to export beef into this market.

Meanwhile, Russia is also pointed out as another chilled beef market with great potential. MLA has identified opportunities to increase exports to Russia, which annually imports 1.2 billion tonnes of beef.

While Brazil is a strong competitor, the beef market could be changing its outlook as more Brazilian farmers venture into ethanol production, Palmer said.

MLA also confirmed it was looking to expand beef exports to the Middle East. While the Middle East is traditionally a lamb market, there was a 182-percent growth in Australian beef exports there, which showed the market's potential.

MLA also confirmed it was looking to expand exports of beef to the Middle East.

Mr Palmer said that while the Middle East was traditionally a lamb market, in 2008 there was a 182 per cent growth in Australian beef exports, demonstrating the potential this market had to grow.

Major export markets Japan and South Korea continue to perform well but are still impacted by import tariffs.

A development of free trade agreements with Japan and South Korea would help increase cattle prices for producers, said Palmer.