BRITAIN and China are presenting some of the most promising opportunities for Australia's high-value beef cuts as the world moves on from pandemic disruptions.
Economists specialising in livestock at the Australian Bureau of Agricultural and Resource Economics and Sciences have pointed to changing consumer demands in China as opening lucrative doors for countries that can demonstrate their ability to meet safety and quality requirements - such as Australia.
And the switch to beef Chinese consumers made in the face of African swine fever-driven pork shortages looks to be permanent in many instances.
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ABARES June forecasts talks about increases in Chinese beef and sheep meat demand being driven by income growth.
The more recent increases have been driven by changes in the relative prices of other meats, notably, pork, the latest Outlook report said.
"Demand increases have outpaced China's domestic beef and sheep meat production. This is likely to continue in the medium term with imports continuing to play a significant role in meeting the difference," ABARES economists wrote.
As pork became relatively more expensive due to the impacts of swine fever, Chinese consumers switched to other proteins.
However, even as pork became relatively cheaper in 2021, China's beef consumption was still higher in absolute terms than in 2020, ABARES reported.
"This suggests that Chinese consumer preferences for beef and sheep meat have increased," the report said.
In addition, Chinese consumers are becoming more conscious of product safety and quality.
"The change in consumer awareness has contributed to a shift in demand towards sources that have greater traceability, such as large domestic enterprises or imports from reputable markets," the outlook report said.
British doors
Meanwhile, the signing of the Free Trade Agreement between Australia and the United Kingdom is expected to open substantial doors for Australian beef to feature on menus in high-end restaurants.
The signing also sends a strong message for trade liberalisation in an increasingly protectionist world, Cattle Council of Australia president Markus Rathsmann wrote in the organisation's 2022 Yearbook.
The UK was now one of 28 international markets engaging in free trade with Australia and international competition to buy Australian beef was fierce, he said.
Cattle producers were hard hit by the UK joining the European Union in 1973 and severing trade ties with Australia.
However, Mr Rathsmann said, in the long run it helped to drive a diversity of trading partners.
"Nearly have a century on, there has been a monumental shift in the way our market operates and this will determine how our trading relationship (with the UK) re-emerges," he said.
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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
