December 29, 2003

 

 

Australia Set To Cash In On Key Asian Beef Markets

 

Australian beef exporters are set to cash in on key Asian export markets, due to the mad cow disease case in the United States, one of the largest exporters to the region.

 

The US exports a significant amount of beef to Asia, with exports to the Japanese market alone reportedly worth more than $US1 billion ($1.35 billion) to the American beef industry.

 

This makes it a very lucrative target for BSE-free countries such as Australia, one of the few beef-producing countries never to have reported an outbreak of the disease, which scientists say can be passed on to humans.

 

Australian beef exports are already worth more than $4 billion a year, and the beef industry relies on exports for 65% of its returns.

 

But Australian producers and exporters will need to move fast to secure their existing sales to the United States domestic market, which could face a dramatic slump if panic sets in amongst the meat-buying public.

 

"There is a risk that there will be some kind of consumer reaction at least in the short term that could affect our beef sales into the United States," said federal Agriculture Minister Warren Truss .

 

"On the other hand, countries around the world will move to ban imports from the United States and that will give Australian exporters into countries like Japan greater opportunities. Our premium products going into the Japanese market, hamburger beef, will obviously be in great demand."

 

According to Austrade, Australia is already the No. 1 supplier of chilled beef to Japan and the No. 2 supplier of frozen beef, behind the United States.

 

In the 2002 year, Australian beef exports to Japan alone were worth $1.2 billion.

Australia supplies beef in full set packs while the US supplies particular parts, such as chuck roll, rib eye roll and steak ready.

 

Other countries, such as Taiwan, have announced their intention to increase imports from Australia and New Zealand to make up for any domestic shortfall caused by the ban on the American product.

 

Other growth markets for Australian beef exports include Korea and South-East Asia.

 

The US industry is in damage control mode, with the government quick to seize on preliminary evidence that the diseased cow was imported from a Canadian farm. Strong demand for Australian beef and veal saw exports increase 5% in 2001 to a record 946,604 tons.