August 2, 2008

 

Australian beef to tap new markets as traditional suppliers fade away 

 

 

More markets are expected to be opened up for Australian beef as traditional beef suppliers lower export volumes while beef demand rises from emerging markets, an Australian industry expert said.

 

Declines in beef exports out of Brazil and the withdrawal of subsidised exports from the EU could open up new markets for Australian beef producers, according to Meat and Livestock Australia's general manager for international markets, Dr Peter Barnard.

 

Dr Barnard noted that Australian beef has so far been relying on a handful of major export customers : Japan, the US and South Korea which together accounted for close to 90 percent of Australia's beef exports.

 

So far, these markets were untouched by the EU and South America. This is because EU cannot export subsidised beef to these countries while Brazilian beef is banned because of disease and food safety concerns.

 

Dr Barnard noted that the beef industry has undergone changes in the past decade and would continue to do so.

 

The EU was a major beef exporter to the world in the last decade, but now exports have slowed significantly while imports have risen tremendously. Similarly, Brazil, a major beef exporter, may soon have to scale down its beef exports as the focus on ethanol is driving more cattle out of farmlands at a time of lower cattle slaughter.

 

Brazil's slaughter last year went down by 10 percent, and is expected to decline by a further 8 percent this year.

 

These two developments have created more markets for Australian beef.

 

Meanwhile, in the past five years, markets like Russia, the Middle East, North Africa, South America and China have opened up with more appetite for Australian meat.

 

Russia is expected to become the fourth largest market for Australian beef this year while Indonesia is another major market which was closed in the past.

 

Australian exporters are also learning to send different cuts to regions where it commands the highest prices.

 

Dr Barnard also noted that Australian exporters are developing emerging markets while maintaining its market share in existing ones.

 

New offices have opened in the past four years in Beijing and Moscow, and increased funds are being directed into areas such as the booming chilled beef trade into the US.