
OUTLOOK 2007 6 March 2007 |
| Demand and prices for Australian beef and lamb to remain strong |
| The average saleyard price of beef is projected to increase with herd rebuilding, before easing gradually as additional supplies come to market. The OUTLOOK for lamb was similar, with average saleyard prices projected to remain close to recent levels.
"While the OUTLOOK for red meats is quite strong, the intensive livestock industries, pigs and poultry, are expected to be under pressure from relatively high feed grain prices," Ian Shaw, ABARE, told delegates at the OUTLOOK 2007 conference. The drought is the primary cause of high grain prices in the short term, with US ethanol policies contributing to higher prices in the medium term. "The demand for Australian beef is expected to remain strong over the next five years. Underlying this is the assumption that the current Japanese import restrictions on US beef will not ease in the near term," Mr Shaw stated. Dr Roberto Vazquez Platero, from the Uruguay meat industry, outlined his expectations for the industry, noting that in the first few months of 2007 about 70 per cent of Uruguayan beef exports went to the United States. He expects larger shipments to continue this year and through the medium term. "Uruguay is currently in negotiations with Korea and Japan for access to these markets. Brazil and Argentina will continue to try to gain access to the US market, and when successful, will also turn their attention to these north Asian markets," Dr Platero said. Don Heatley, Meat and Livestock Australia, discussed the Australian meat and livestock producers" dependence on export markets, and explained that different consumers want different products, using emerging markets such as Russia and China as examples. MLA continues to run meat retail seminars, butcher accreditation programs and in-store demonstrations to promote the consumption of Australian meat in export markets. "There are three drivers of consumption – value, safety and quality – all underpinned by trust, and if we continue to build that trust among our customers, then there is no reason why we can't expect to remain competitive in the world market," Mr Heatley concluded. |
| Copies of available speakers' presentation and papers are available at ABARE's OUTLOOK website, OUTLOOK 2007 or phone 02 6272 2010. For general media enquiries, contact Maree Finnegan, Media Coordinator on 02 6272 2260 or email mfinnegan@abare.gov.au. |