Meat Industry In Australia Free Samples †MyAssignmenthelp.com

Question: Discuss about the Meat Industry In Australia. Answer: Introduction Australia is widely recognized as one of the worlds largest producers of the commercial livestock and also a leader in the exportation of the red meat. Currently, the countrys off farm meat industry ranges at A$ 17 billion(Meat Livestock Australia Limited, 2016). The meat sector in the country can be further classified into the cattle industry, sheep industry, and the goat industry. The cattle industry in Australia involves 58% of all the agricultural activity(Barbour, et al., 2017). Approximately two hundred thousand people are employed in the red meat industry. Australian Meat Industry Overview Australia is the sixth large consumer of the beef in the world. In the year 2015-2016 meat sector contributed 25 percent of all the agricultural products in the country. In the same year domestic consumption per person averaged 25 kilograms per person. Besides, beef is the second most popular fresh meat consumed in the country after the chicken. In 2016-2017 Australia exported 74 percent of its total beef(Meat Livestock Australia Limited, 2016). The consumption of sheep meat in Australia ranged at $110 billion in the year 2015-2016. Australians are among the highest sheep meat consumers in the world and in the year 2015-2016 alone each person consumed an average of 10.2 kilograms. Apart from domestic consumption, Australia is ranked as the largest exporter of the sheep meat in the world(Meat Livestock Australia Limited, 2016). On the other side, Australians are also goat meat consumers. However, the Australian continent is a small producer of the goat meat but one of the largest goat meat producer. Its two major markets are the Taiwan and the United States. Besides, Taiwan and the United States, Australia can also export its goat meat in China, Pakistan, and Japan. The three countries are the largest goat meat consumers, but they are neither largest importers nor exporters(Limited, 2016). In 2015-2016 the goat meat export amounted to A$258 million. The above data analysis describes the nature of the meat industry in Australia. It also gives the reader some of the potential opportunities that can be available for the meat producers in the country. In the following discussion, this report will use the above data as well as other information from different sources to highlight opportunities and challenges that accrue this sector. Opportunities From the above data, it is clear that Australians are the largest consumers of the beef, mutton and goat meat in the world. Secondly, the country produces the three types of meat in large quantities creating a surplus in that, in turn, is exported to the foreign markets. Therefore, the meat sector in Australia has both domestic market and international market as they major areas where the producers can use opportunities for growth. Diversification of Exports Australian export its meat almost in every corner of the world. Bearing in mind that it faces competition from other meat producing countries it is important for the meat sector to diversify its meat products. The meat producers in Australia can diversify their exports through exporting fresh meat, the canned meat and refrigerated meat. Besides, the producers can also convert meat into other products that can act as supplement of the meat. For example, the producers can dry the meat, grind and pack it into boxes to be exported in the international market. This will increase the companymarketing opportunities in the global arena. Entering into Economic Partnership Agreement with other Countries Australian meat processors through the federal government can benefit from the economic integration with other nations. For example, Japan, China, Malaysia, and the USA are some of the largest consumers of the Australian meat products(Barbour et al., 2017). Therefore, entering into an economic agreement with these countries before the competitors will give the meat producers in Australia an opportunity to expand their businesses in the international market. Integrating Australians Meat Eating Culture with high Quality Eating From the earlier data provided in this report it evident that the Australians are the largest consumers of the meat in the world(Fowler, 2016). Associating this culture with high quality meat eating means that the producers will brand their products appropriately and the consumers will be willing to pay high. As a result, the meat producers will realize a higher profit. This is untapped opportunity that Australian meat producers should focus on utilizing. High Demand for the Premium Quality Meat Currently, there is a huge demand for the quality meat. Australia has been exporting meat in the international market for over sixty years. This has enabled the country to enhance its reputation as one of the largest and best meet exporters. Besides, there is expected growth in the demand for meat in the international market to 376 million tons by 2030(Dearin, 2015). This gives Australian meat producers an opportunity to improve the quality of their meat as well take advantage of the growing international market by exporting more meat products. Challenges International Competition Apart from the domestic market Australia also largely export its meat products. The Australian meat faces stiff competition especially from India, Brazil, and the United States as a result of live cattle trade(McConchie, 2016). Additionally, these countries experience a lower cost of operations than Australian. Meat producers in the country can overcome this through value based marketing. High Regulatory Costs in the Supply Chain The Australian meat sector is highly fragmented hence increasing the cost of inspection by the government authorities(McConchie, 2016). This increases the prices of the exported meat in the international market. Lack of cooperation between animal suppliers and meat processors. The lack of transparency in this industry has led to the establishment of tension as well as lack reliability among the meat suppliers and the processors(Natalia, 2017). Fluctuating Meat Prices in the International Markets As a result of stiff competition and global financial crisis, the price of the meat tends to fluctuate sometimes leading to losses(Australian Beef Association Inc, 2014). Conclusion There a lot of opportunities as well challenges facing the Australian meat sector. However, the opportunities supersede the challenges. The Australian meat industry can use the available opportunities to expand its domestic and international operations. This will give the industry to claim and maintain the competitive advantage that it can use to rip the benefits of the market growth in future. With sustainable competitive advantage, the industry will be able to overcome both international competition and fluctuating meat prices. On the other side, the industry can request for the government support to eradicate the challenges of high cost of regulation as well as lack of cooperation between the suppliers and meat processors in the industry. References Australian Beef Association Inc, 2014. A Summary of Financial and Marketing Challenges Faced by Cattle Producers, Mowbray, Launceston: Australian Beef Association Inc. Barbour, L., Locke, S. Fitzgerald, B., 2017. Australian meat industry wins better access to lucrative Chinese market. [Online] Available at: https://www.abc.net.au/news/rural/2017-03-24/nrn-more-chilled-beef-to-china/8379284 [Accessed 2 September 2017]. Dearin, C., 2015. GCC Markets: Five Big Opportunities for Australian Food Exporters. [Online] Available at: https://dearinassociates.com/gcc-markets-five-big-opportunities-for-australian-food-exporters/ [Accessed 2 September 2017]. Fowler, C., 2016. Australian sheep producers set to benefit from an increased appetite for lamb in 2017. [Online] Available at: https://www.abc.net.au/news/rural/2016-12-12/next-year-looks-good-for-sheep-producers/8102352 [Accessed 2 September 2017]. Limited, M. . L. A., 2016. Australia's goat meat industry, s.l.: Meat Livestock Australia Limited. McConchie, R., 2016. Red meat sustainability report offers a feast of ideas to tackle challenges. [Online] Available at: https://www.abc.net.au/news/rural/2016-10-26/report-outlines-challenges-red-meat-processing-industry/7968482[Accessed 2 September 2017]. Meat Livestock Australia Limited, 2016. Australias beef industry, s.l.: Meat Livestock Australia Limited. Meat Livestock Australia Limited, 2016. Australias sheep industry, s.l.: Meat Livestock Australia Limited. Natalia, L., 2017. Future of Australia's meat industry up for discussion. [Online] Available at: https://www.northernstar.com.au/news/future-of-australias-meat-industry-up-for-discussi/3139259/ [Accessed 2 September 2017].