BIG opportunities for Australian beef are expected to play out courtesy of the United States cattle cycle over the next 12 months, Meat & Livestock Australia global market experts say.
Equally, South East Asian countries are emerging as key markets to watch.
US beef production is expected to drop away significantly as the effects are felt of years of culling due to drought.
Speaking at MLA's Updates forum in Queensland last week, managing director Jason Strong said just a 10pc reduction in production massively erodes the US industry's ability to export beef and compete with Australia.
"They are also a significant market for us - 90 per cent of their beef production is consumed domestically," Mr Strong said.
MLA's industry insights and strategy manager Scott Cameron said there were big growth opportunities in the US across all of Australia's red meat exports, from grassfed to premium grainfed, Wagyu, lamb and goat.
"The US has the most number of affluent consumers in the world and affluence has a strong correlation with consumption of imported red meat," he said.
"It is our number one chilled grassfed beef destination and lamb exports to the US have grown 95pc over the past ten years."
Yet even more potential existed for lamb, he said.
"The US consumer eats 150kg of red meat per year but only 0.6kg of lamb - the headroom for growth is there," Mr Cameron explained.
"There are a high number of migrants in the US and lamb is versatile - it's used in Indian, Moroccan, Middle Easter, Green and English dishes."
The US is also Australia's top market for goat exports.
SEA potential
In South East Asia, consumption of red meat is far lower than the US but the growth potential is arguably even higher, Mr Cameron believes.
Already, Australia makes $2.7b in red meat sales per annum across Indonesia, Singapore, Thailand and Vietnam.
"Fish and chicken are the dominant proteins here, driven by price point but we are expecting household wealth growth," Mr Cameron said.
Tourism in the region is also set to grow from $150b per annum pre-COVID to $350b, which will boost demand for beef.
"We are also seeing a growing younger population, and the diversification of quick food, presenting opportunities for red meat," Mr Cameron said.
Overall, Australia red meat was in a strong position demand-wise in terms of global markets, the MLA team said.
Last year 1.5m tonnes of red meat was exported across 100 different countries, contributing $15b to the Australian economy.
There has been 19pc year-on-year growth in value across red meat for the 12 months ending September.
For beef, it has been 18pc, for lamb 19pc, for mutton 21pc and goat meat is leading the charge at 62pc.
Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
