Cattle slaughter: Australia loses ground in key beef export markets

Australia’s key ally, the US, is pushing into our top beef markets. An expert explains what the latest export trends mean for us.

Beef exports to China have fallen as trade relations remain strained and the US muscles into the market.

Australian cattle prices may be at record highs but our share of lucrative export markets is falling as the US muscles in to China.

And, the US itself is also importing less of our beef.

Meat and Livestock Australia’s latest cattle projections reveal Australian exports to China have fallen as trade relations remain strained, and the US is now selling increasing tonnages thanks it its US-China Phase-One trade agreement.

Australia’s exports to China fell 40 per cent year-on-year during the first half of 2021.

Meanwhile, Chinese imports of US beef increased nine-fold to 41,600 tonnes shipped weight – making the US the sixth largest supplier to the market.

MLA international marketing general manager Andrew Cox said it was not unexpected that the US’s access to China would leads to “serious volumes”.

Australia’s tight supplies and the fact that eight plants remained locked out of China were the reasons for the decline in Australia’s cut.

“We don’t ever expect a free ride but we do certainly hope for fair access and we hope that is restored,” Mr Cox said.

He said Australian beef was in a strong position of trust with Chinese consumers who had confidence in the quality of the product.

“The issues are with supplies and access,” he said.

Australian beef exports to the US also dropped by 46 per cent in the first quarter.

Cattle Council of Australia chief executive officer Travis Tobin said Australia’s exports were down across the board due to the low herd numbers, while the US was “on the flip side of that cattle cycle, having been through a herd rebuild and now facing (worsening) seasonal conditions and some herd liquidation”.

“Critically, Australia still dominates the imported chilled beef market,” Mr Tobin said.

“But that said, nobody likes to lose market share, but I think what we are seeing is due to our short supply of cattle,” he said.

“Our herd is expected to grow 5 per cent this year, so we are really rebuilding.

“Australia has also a very diverse range of markets we supply, which helps.”

Mr Cox said the drop in exports to the US was due to the cyclic nature of manufacturing beef.

Meanwhile, Mr Cox also told The Weekly Times this week that Australian cattle prices were expected to remain high while global and local supplies were tight.

To continue to attract global premiums, Australia’s high priced beef needed to “continue to tell consumers the positive story about our premium product”.

“Australia needs to keep demonstrating to consumers the value of its product and keep telling the story,” he said.

Regarding alternative protein sources, such as plant-based meat products or fake meats, Mr Cox said the Australian industry was “happy to compete with any food protein” on global markets.

He said Australia’s beef industry was proud of its product and its sustainability credentials.

However, referring to the current senate inquiry into labelling, he said industry did not want to see an uneven playing field where non-meat products used terms, like beef, that beef industry ley payers had invested millions of marketing dollars in.

“We don’t want to see the equity we have built into our products (brands) eroded,” he said.

Mr Cox said he saw little evidence of alternative products taking considerable market share from beef globally.

“I think there is more noise than sales,” he said.

“I’m not concerned from a sales point of view, they are very small competitors, I’m more concerned about products competing like pork.

“However alternatives are a growing market and as they grow I think they will be subjected to growing scrutiny over their emissions and nutritional claims; which we would welcome.”

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