Why 2023 will go down as a mix of good for some red meat but not all

The MLA believes the US will be a key market for Australian beef next year, while negotiations continue with the EU.

Red meat exports to the United States have been a mixed bag for Australia producers this year as beef shines and sheep meat falls.

Meat and Livestock Australia reports this year will go down as a “turn-around year” for beef exports to the US and predicts even better news next year.

And MLA believes the US will be a key market for Australian beef in 2024 for a number of reasons.

“Of the major beef markets, the US is performing the best economically, and the $US is relatively strong against the $A,” an MLA spokesman said.

“The number of lot fed cattle in Australia has increased by about 40 per cent over the past decade, meaning the supply of Australian grain-fed beef is close to (or at) all-time highs, when forecast availability of US grain-fed beef towards the second half of 2024 is down.

“This means that Australian beef will be applicable outside the lean trim trade.”

Demand in the US for beef is expected to remain strong next year.

“The USDA is forecasting a drop in US beef production of 508,930 tonnes in 2024 with demand remaining strong,” the spokesman said.

“As Australian red meat supply picks up, MLA is supporting exporters and levy payers to capitalise on the positive trading conditions in North America.”

It was not so promising for sheep meat though, with sheep meat export volumes to the US back compared to the previous year.

But a late spike in demand during the holiday period could see a late lift in figures, MLA believes.

The organisation is also hopeful the US food service industry will start using more red meat from Australia.

“Forecasted declining availability of US beef and lamb has heightened interest from US food service operators and retailers to work with Australian red meat products, some for the first time,” the spokesman said.

Meanwhile, there was little good news for a potential freeing up of trade with the European Union after EU free trade agreement talks stalled in October this year.

Australia-EU red meat market access task force chairman Andrew McDonald said Australia’s case for “seeking and securing significant trade reform is compelling”.

“The EU is one of the world’s largest meat consumers and in order to service this demand, there is an ongoing import requirement,” Mr McDonald said.

“However, our ability to service the market is severely limited due to the EU’s maintenance of outdated, inequitable and restrictive quotas and high tariffs.”

Mr McDonald said it was disappointing that access to the EU market had been eroded while the negotiations were still going on.

“We’ve watched our competitors improve their access to the market and now we’re looking to level the playing field, as the EU mantra consistently states,” he said.