Australian red meat exports: Volume to US up as hopes rise for EU FTA

A bigger supply of cattle has red meat exports booming, and there are hopes more markets might open soon.

Australia’s red meat industry is in a prime position as June exports lift 24 per cent year-on-year and trade negotiations open up new markets.

Producers and processors are now pinning their hopes that a free-trade agreement with the European Union will come hot on the heels of that with the UK, which allows up to 35,000 tonnes of new access for beef alone.

Herefords Australia chief executive officer Michael Crowley formerly held roles with Meat and Livestock Australia in Europe and described the EU market as “a huge opportunity for us”.

“There are 300 million people that are prepared to pay for quality, and it’s a fantastic opportunity,” Mr Crowley said.

“But there is lots to work through ... red meat tends to be a little bit more sensitive and negotiated late in the piece.”

An EU-Australian FTA would also be potentially more difficult to negotiate, he said, as all EU member states (28 countries) needed to agree, as well as working with EU representatives.

“It is a big job but a big opportunity and well worth the effort and energy to get a great deal for red meat into Europe,” Mr Crowley said.

He said Australian grain-fed beef had predominantly been sold to the EU food service industry but any new agreement would open up retail opportunities.

But there would also be chances for grass-fed beef in the EU with current exports limited by volume as well as category.

“It will still remain a high-quality market and we need to underpin that with quality but there will be many opportunities for all types of production systems and not just grain-fed beef,” Mr Crowley said.

The positive outlook for EU exports comes as Australian red meat gains ground across the world.

June red meat exports were up 24 per cent year-on-year, with more than 160,000 tonnes sent overseas.

MLA business analyst Tim Jackson said China was Australia’s overall biggest customer, taking more than 35,000 tonnes of red meat and almost 22 per cent of all exports.

But the big news is in the take by the US, which took 89 per cent more Australian beef this June than last, or 20,584 tonnes.

“The US is now Australia’s largest beef export market for the first time in three years,” Mr Jason said.

“Higher exports to the US are likely to continue as American domestic production continues to slow, offering an important market for Australian beef as our production grows.”

June export figures also rose for China (up 40 per cent) and Indonesia (up 43 per cent), and South Korea (up 3 per cent) but fell 16 per cent to Japan.