November 6, 2012

 
Australia's beef producers to benefit from increased world demand

 


The versatility of Australia's beef positions local producers for beneficial gains from rising world demand.
 
The increase in global demand would lead to increased competition - the only way producers would see better prices for their beef according to Meat and Livestock Australia (MLA) regional manager, Lachlan Bowtell.

 

Bowtell said that MLA was working to increase demand for Australian beef to improve the farmgate price though better competition.


Australian beef already had a strong foothold in Japan and the US and Bowtell said the growth was likely to come from emerging export markets such as Chile, Russia and China.


He said Australia was the only country that could deliver what the world wanted in terms of clean and safe beef.


"Because 66% of our beef is exported, we need to produce a product that is beyond reproach and is consistent every single time," Bowtell said.


"And because Australia can do that we are well positioned to enter almost any market."


He said China was already a big player for Australian lamb, but beef was a foreign product for the Chinese consumer.


In order to engage Chinese consumers, MLA was working on a second tier strategy, which targeted five regional cities.


"Everyone in the industry thinks Beijing is the holy grail but while they are fighting for market share in Beijing, we are working on these second tier cities," he said.


MLA was running programmes in these smaller cities targeted at the retail and food service level to grow demand for Australian beef products.


Bowtell said it was important to chip away at the Chinese market.


"Australia doesn't have enough product to supply all of China if they were to suddenly start eating beef once a week," he said.


"So we need to first focus on growing the demand so we can eventually increase our beef supply to that market."
 

Russia was also a rising player for Australian beef at both the manufacturing and high end level.

 

Opportunities for Australian beef in Chile have also arrived.


"We have sent very little product to Chile previously but in only a few years, they have come from nowhere and now take up to 14,000 tonnes of our beef," he said.

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