Richard Norton, MLA: Australian red meat industry to reach record sales
Richard Norton, MLA: The Australian red meat industry is worth over 20 billion dollars annually to the economy. For 2017, the domestic beef industry is on track to have its largest sales year on record, estimated at just under $9 billion. Beef is still the clear market leader domestically, capturing 35% value share of all fresh meat sold in Australian retail stores.
Tonnes of beef sold to Japan are up 11.4% and China 13.9% against aggressive South American and US competition.
The prime lamb industry is now worth just under 3 billion dollars to the Australia economy with its value growing as production increases.
Australia’s brand is rated highly because of our industry’s investment in representation in-market, integrity systems and product quality. On that front, Australia’s world-leading eating quality grading system, Meat Standards Australia (MSA), is delivering an additional 130 million dollars to farm gate, has 48,000 voluntary members with product now exported under an eating quality graded cipher.
In the European market, with Australian beef, sheepmeat and goat meat facing restrictive EU quota access arrangements which hamper industry’s response to ongoing EU consumer demand, our industry continued to convey strong support for the early commencement of Australia-European Union Free Trade Agreement (FTA) negotiations. Following the conclusion of the FTA scoping study, these negotiations are expected to be launched in early 2018.
The Australian red meat industry has also been actively advocating enhanced bilateral trade ties for Australian beef and sheepmeat entering the United Kingdom (UK) following Brexit, and the development of an FTA (at the earliest opportunity) with the UK once it leaves the EU.
RN: MLA will continue to pursue its vision to be the recognized leader in delivering world-class research, development and marketing outcomes that benefit the Australian red meat and livestock industry. In collaboration with the red meat industry, MLA will continue to work on key projects such as:
- MLA will continue to drive demand for Australian red meat through understanding consumer insights and behavior– and implementing effective promotional campaigns based on data and evidence – both at home and in key international markets.
- Further increasing the scope of the MLA Donor Company’s (a subsidiary of MLA)annual investment portfolio, which has in the last few years increased from some 30 million dollars to almost 100 million dollars.
- MLA is now involved in 11 projects within the Australian Government’s Rural R&D for Profit program.
- Working towards our aim of making the Australian red meat industry carbon neutral by 2030.
- Improving connectivity for the Australian red meat industry.
- A continued commitment to ‘grassroots’ consultation to ensure research priorities, and subsequent investment, is guided by and fed back to red meat producers.
For the Australian cattle market in 2018, Slaughter cattle supplies are forecast to increase, however the volume of cattle that came through to slaughter between 2013 and 2015 will not occur for a number of years because the herd is not there to liquidate and numbers will continue to be limited by the ongoing rebuild.The success of the Queensland wet season will set the stage for the year ahead and will heavily influence supply and price expectations. The state, which hosts about half the beef herd, has not had a substantial wet season since 2011–12 and will be thirsty for cattle if this summer is successful.
For Australia’s sheep meat market, assuming average seasonal conditions, production in 2018 looks likely to remain fairly steady, with lamb and mutton slaughter and carcase weights shaping up to be similar to 2017 levels.
In the European market in 2018, FTA negotiations with the EU will provide an unprecedented opportunity to enhance the existing trading relationship. With the EU being an importer of high quality food products, the Australian red meat industry is ideally positioned to help meet future demand. Responding to market requirements by providing EU consumers with a choice of beef, veal, lamb, mutton and goat meat products, produced to the highest global standard, is at the forefront of our approach.
RN: After 40 months as Managing Director of MLA, I’ve met some 24,000 levy payers on farms, in businesses and at events big and small.There are common themes arising across the country.
For many, there’s a close interest in the contribution our red meat and livestock industry is making to feeding people all over the world.
In the last three years, MLA has worked hard to better understand our consumers and inform our producers - this will continue heading into 2018. We’ve also worked hard to improve our accountability and the transparency. MLA’s2016/17 annual report carries 13 pages of key performance indicators, with progress reported against the industry’s priorities.
In 2018, MLA will continue to evolve in a world where investment is increasingly coming from businesses that understand innovation needs to be ‘fast-tracked’ to remain competitive. Of MLA’s total research spend in 2018, only 20% will come from producer levies and over 53 million dollars of our research funding will come from entities outside the Federal Government.
Under successive federal governments with their matching research investment, the ‘industry owned company’ model has served the industry well. Producers can be proud of what has been delivered through their joint investment in MLA.
As an export focused sector, facilitating trade and improving market access will remain a key industry objective throughout 2018. Removing trade impediments not only cuts cost from the supply chain, but importantly allows our sector to respond to growing global demand for red meat.
A key message for 2018 is that the consumer is king. MLA will continue to ensure we have a deep understanding ofmarket requirements – and therefore produce and supply quality red meat productsthat meet and exceed consumer expectations. We look forward to working closely with the supply chain, our international customers and partners in Europe in this regard.
Photo Source: MLA/ Richard Norton, Managing Director at Meat & Livestock Australia (MLA)
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