September 29, 2010

Australian beef sector still far from doubling output

The Australian beef industry has a long-overdue opportunity in doubling its output with the EU grain-fed beef quota of 45,000 tonnes.

Australia's two big processors, Teys Brothers and Swift Australia, both see any extension of the existing 20,000-tonne grain-fed quota as a bonus.

Teys livestock director Geoff Teys described it as "an opportunity for Australia to get into a duty-free market" which he said would help offset the soaring Australian dollar.

"If producers want more return, this is where they will get it. Particularly if you break down the way the duty is in Japan and Korea and the dollar so high. We already do a lot of EU and we believe it is an important market because we can no longer rely as heavily on our traditional markets in Asia, America and domestically," Mr Teys said.

Swift Australia director and corporate affairs manager John Berry agreed, saying this was the chance to get a serious foothold in the EU.

"It lets us diversify our current grain-fed product and will be a good result all round for the industry in Australia we believe. Like all major processors, we are always looking for new markets, and duty-free ones are so hard to find," he said.

But an increase in the EU quota will have no immediate impact on Victoria's primarily grass-fed herd. However, Victorian producers will be waiting a long time for benefits to trickle through the system.