August 3, 2006

US beef industry assure its Australian counterpart it poses no threat
 

The biggest threat to the future of Australian beef exports is not the resumption of US beef exports to Japan but inexpensive poultry, pork, and fish protein alternatives, Jay Truitt, vice president of US National Cattlemen's Beef Association (NCBA) said.

Australia is one of the best trading partners of the US, Truitt noted, adding that he does not see the US and Australia as direct competitors in any marketplace. However they do have a common competitor and that is alternative protein sources, Truitt said.

Meat and Livestock Australia's regional manager in the United States Michelle Gorman said a level of uncertainty remained about which US exporters would try to re-capture market share in Japan, or how this would affect Australian farm-gate returns.

However, Gorman agreed that the priority is to ensure there is continued growth in global bef consumption and this would require working towards pre-ban levels of consumption. An open and confident Japanese market should be a long-term goal of the Australian beef industry, Gorman added.

For the Japanese markets, Truitt expects continued domestic resistance to US beef and said processors were looking towards emerging markets such as Mexico, as an alternative destination for their exports. Mexico imports nearly US$1 billion worth of beef from the US annually.

Truitt said because of its proximity, any problems detected in Mexico can immediately be rectified or investigated.