Global beef market…

The global beef market outlook is positive. So far, the growth in population and household wealth in the developing markets underpins the trend. Thus far, the beef consumption growth in the past decade and the forecast over the next has been especially in Asia.

The surplus production centres in North and South America as well as Australasia. While Australia produces only 3% of the global beef production, it accounts for almost 17% of the world trade. Thus, it remains one of the top-three largest exporters for more than seven decades.

World trade

Australian beef production faces many headwinds, especially to remain competitive with prices. So far, there are many opportunities for growth. Thus far, the production and consumption imbalances drive the global trade. Furthermore, improved cold chains, reducing sea freight costs and the development of governing institutions supports the growth. These factors influence the global beef trade over the past two decades.

A record of 17% of Australian beef production was traded globally in 2018. It far it is higher than pork, sheep meat and poultry. Hence, Australia exports over 70% of beef production. So far, it is by far more than most, however comparable to New Zealand and Uruguay.

Opportunities and challenges

The growth in household incomes provide many consumers the opportunity to increase their protein intake. Thus far, the shift into the middle to upper income levels may have the ability to improve the meat quality they consume.

In many developed markets consumers are now differentiating within the beef category. They are now choosing between grass-fed and grain-fed products. Hence, Australia’s disparate production system allows the industry to target a broad range. Furthermore, in many mature markets there are growing consumer interests in sustainability, provenance and animal welfare. Moreover, food safety and traceability provide the opportunities for the Australian beef brands.

Thus far, the high beef price in comparison to proteins like chicken and pork will continue to test growth. It may keep the category sensitive to economic conditions and consumer demand too. Hence, relative to major competitors, the high price of Australian beef compounds with other costs such as supply chain. So, Australia needs to focus to differentiate itself from competitors. It needs to provide a value proposition to the end-users.

The key competitors like the USA and Brazil are growing their production and exports. Furthermore, it will intensify competitions in time to come. The future target market is the Asian market. Thus far, the import growth in China leads the strong global growth. So, this growth absorbs the additional beef on the global market. However, a slowdown would have a negative effect on farmgate prices in Australia.

Consumer landscape

Consumer viewpoint on beef and the competing proteins may differ significantly. It especially varies from market to market. However, there is common things consumers want globally. So, it may be fresh and safe meat that the whole family can enjoy. Thus far, economic drivers and development levels influence the typical consumer. 

Beef has a history of consumption in many countries globally. It often constitutes a major diet plans in certain countries. Beef includes a wide range of products. So, it may range from low value manufacturing products to high value Wagyu steaks. Thus far, all these play a significant role on the country and consumer segment. 

The western world considers beef as the ‘prime’ meat. So, it views beef as the most superior and delicious meat. Thus far, it is often a family favourite. So far, beef shits its role in many Asian and Middle Eastern countries. For instance, proteins such as pork is more popular in Asia and seafood, chicken and sheep meat are larger part of diet in Middle East.

Thus far, to know the diversity of Australian beef and consumer needs that drives the purchasing decision is the key in each market.