Asia offers two-million new meat customers a month

(MEATPOULTRY.com, November 14, 2008)

by Bryan Salvage

NORTH SYDNEY, AUSTRALIA -- In delivering his address to the Meat & Livestock Australia annual general meeting in Orange Nov. 13, M.L.A. Chairman Don Heatley said the rapid economic growth in Asia is providing great opportunities for the Australian red-meat industry to attract new consumers.

"Every dollar in this industry is generated by consumers -- either here or around the globe," Mr. Heatley said. "So when the World Bank says Asian economic growth is creating an extra 2 million middle-class consumers a month in the world’s developing countries, we see a positive -- an extra 2 million ’first time’ consumers for animal protein suppliers to target."

This was a key reason why more red meat was sent to emerging markets last year than to the more traditional North American and North Asian markets, he added. "Australian red-meat exporters have captured a share of these emerging markets, with our beef exports to Russia, Indonesia, and the Philippines and sheep-meat exports to China all increasing significantly," he said.

Meanwhile, David Palmer, M.L.A. managing director, said it was vital the Australian red-meat industry continued to push for removing global trade barriers, which includes the negotiation of free-trade agreements with key trading countries. "It is estimated that up to AU$1 billion [US$654.6 million] could be added to the Australian red-meat industry if all current trading barriers were removed," Mr. Palmer said.

The pending ratification of the U.S.-South Korea free-trade agreement, which would see the import tariff on U.S. beef progressively reduced to zero over 15 years, sounds a blunt warning, he added. "Australia’s red-meat industry needs to be front-and-center in communicating the benefits of trade liberalization to governments in key markets, including Japan and Korea," he said.

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