While there continues to be plenty of talk about Asian opportunities for Australian beef exports, especially to China, the United States holds firm as our prime market.
According to Meat and Livestock Australia’s (MLA) chief marketing officer, Lisa Sharp, the US economy is expected to grow 2.9 per cent during 2017 and North Americans will eat 20pc of all global beef produced this year.
“Key US retail growth drivers this year will be low prices and discounted items,” Ms Sharp said.
“Regardless of the positive (US) economic growth, price is still a very strong driver for US consumers and Australian beef producers need to be aware of this.”
US average income per person will continue to be at least five times greater than China even by 2025.
- Lisa Sharp, MLA
Ms Sharp said the best way for our beef producers to maintain and grow market share in the US’s budget conscious consumer environment is for Australian beef to differentiate its features.
“Showcasing the attributes of Australian beef will be essential in continuing to gain a share of the lucrative US chilled beef market,” she said.
“MLA conducts a comprehensive global consumer survey every year and our insights tell us there are consistent patterns across global markets – consumers are expecting low prices, high quality, convenience, health, as well as social and environmental values they can connect and resonate with.”
One key factor making the US standout as a lucrative market for future Australian beef exports is recent forecasts the US average income per person will continue to be at least five times greater than China even by 2025, Ms Sharp said.
“In a simple calculation, a US consumer should have at least a five times greater purchasing power than an average Chinese consumer and trends suggest US consumers will be more conscious about beef’s story provenance and sustainability,” she said.
While meat and poultry are also expected to remain the highest spending food category by US consumers, it will face strong competition from a number of other foods such as dairy, fish, fresh fruits and vegetables.
"Beef is a natural product and is well positioned to leverage from this movement,” Ms Sharp said.
