CHINA'S massive forecasts for demand growth, the United State's unrelenting consumption of burgers and Europe's ability to pay very high per-kilogram rates tend to headline Australian beef export opportunities.
However, the stability of markets like Japan and South Korea is presenting as being of far greater value as Australia continues down the long path of herd rebuilding, short supply and corresponding expensive price tags.
Add in the smoother nature of doing business with these two markets, and the potential to extract additional value from product development, consumer evolution and carcase optimisation and there is a strong argument for investing more here - even if that is at the expense of the more flamboyant markets.
ALSO IN BEEF:
The latest export figures across both volume and value clearly show Japan and South Korea are the markets 'moving in the right direction', according to Mecardo's Jamie Lee Oldfield.
Japan is currently Australia's biggest beef market with more than a quarter share and is also the highest value market.
South Korea has lifted its market share by 3 per cent on 2020 levels, to sit at 17.91pc. That is the highest it has been since at least 2006, and makes South Korea the second largest market, overtaking the US and China, Ms Oldfield reported.
"South Korea's October total was the second highest monthly volume for the year and traditionally November and December is when we see Australian beef imports increase there," she said.
However, Meat & Livestock Australia has warned the duty on exports to South Korea are on the cusp of jumping significantly with Australia's preferential beef safeguard at 95pc utilisation. That typically occurs late in the year but the extra cost of Australian beef, particularly compared to US beef, could affect volumes into South Korea for the rest of the year.
Focus here
Animal protein experts with agribusiness banking specialist Rabobank believe South Korea and Japan will be the cornerstone of Australia's beef exporting prosperity over the next five years, saying they are 'critically-important trading partners that require ongoing attention.'
The bank has just released a report called Uncovering the Value of the Japanese and South Korean Beef Markets, which argues that given Australia's current beef production is many years off recovering and growing beyond its previous volumes, what we need at the moment is strong trade partners who value the Australian product.
Rabobank expects total import volumes for Japan to grow over the next five years at an average of just over 2pc per year, while South Korean total beef imports are forecast to grow slightly faster at just under 4pc per annum.
The report advocates developing a more consistent and stable supply chain for the Japanese and South Korean markets both in terms of production volumes and quality.
Grain feeding is one way to do that.
Rabobank analyst Angus Gidley-Baird said: "We already see a strong preference for grain-fed beef into Japan and South Korea with 51pc and 37pc of exports respectively made up of grain-fed beef.
"But there are also ways to improve consistency and quality in a pasture-based system, including managing stocking levels and feed availability with a view to turning off cattle that meet market specifications and reducing the impact of seasonal variation."
Start the day with all the big news in agriculture! Sign up below to receive our daily Farmonline newsletter.