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WORLD BEEF MARKETS ARE CONSTANTLY CHANGING , SO KEEP YOUR EYE ON THE BALL


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KEEPING YOUR WITS ABOUT YOU WHEN FOLLOWING MARKET TRENDS IN CATTLE PRODUCTION & PRICES FOR SAME AS WELL AS WHO THE BUYERS ARE

THE world’s beef markets are changing from simple to complex, growth markets are moving from West to East, and the future bears no resemblance to the past.

As the world’s economic tides surge toward Asia, Australian beef producers will be presented with enormous opportunities, MLA economist Peter Barnard told the opening session of Beef 2012 in Rockhampton, but the new market may also challenge some assumptions that have underpinned genetic selection in the past couple of decades.

Dr Barnard, MLA’s general manager for Trade and Economic Services, reached back to 1955 and forward to 2020 to show the full-house audience at Beef 2012’s International Beef Cattle Genetics Conference where Australia’s beef industry currently sits within the long-term trends.

Over decades, Australia’s beef export business has moved from sending carcasses to very few countries, to sending a huge variety of cuts and other carcass components to many countries.

In 2007, three markets – Japan, Korea and the United States – accounted for almost all beef exports. But those same three markets took less than 70pc of the 900,000 tonnes of beef that Australia shipped in 2011.

In what Dr Barnard thinks will be an evolving trend, about one third of 2011 exports went to new, diverse markets – Russia, Europe, the Middle East, and particularly to China and other south-east Asian nations.
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While other regions will continue to provide valuable markets for niche products, Dr Barnard argues the big growth will happen in Asia.

The income gap between western nations and Asian nations, quite recently a vast gulf, is closing fast.

In 1970, even the rich in Indonesia were poorer than the poor in the United States. Today, the income of the wealthy in Indonesia overlaps with that of the US poor – “and poor people in the US eat a lot of beef”.

While the affluence of the Chinese as a whole is still well below Western levels, in prosperous mega-cities like Shanghai “purchasing power is not eons away from the US”.

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May 14th, 2012
Topic: Cattle, IMPORT EXPORT, PRICES Tags: , , , , , , , , , , , , , , ,

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