Australia was the world’s largest sheepmeat exporter and second largest beef exporter in 2019, according to the latest State of the Industry report from Meat & Livestock Australia, highlighting the resilience of the industry during a challenging year.
The State of the Industry Report 2020, released on behalf of the Red Meat Advisory Council (RMAC), provides an overview of the Australian read meat and livestock industry.
It found in 2018-19, domestic and export sales of red meat totalled $28.5 billion, while the production accounted for $37.8 billion of overall industry turnover.
Red meat exports increased 16 per cent year on year and were 43 per cent higher than 2013-14 levels, while the number of red meat and livestock businesses in Australia remained “relatively stable” over the past five years, despite a minor decline of three per cent in 2018-19 to around 77,500 businesses.
MLA managing director Jason Strong said the report highlights the resilience of the industry following a challenging year both domestically and globally.
“Drought intensified across the eastern states with the Bureau of Meteorology officially declaring 2019 as the hottest and driest year on record in Australia. Cattle and sheep producers were forced to de-stock, driving the national herd and flock to historical lows. The national bushfire crisis further tested the resilience of many producers.” Strong said.
“Industry turnover of red meat and livestock recorded a notable increase over the same period, while industry value add and employment levels in the red meat sector remained stable at a time when the industry was suffering one of the worst droughts on record,
“China’s position as a key market for Australian red meat continued to grow, with the outbreak of African Swine Fever driving demand for protein to the market. China’s market share of Australian beef exports in 2019 was 27 per cent, followed by Japan with 23 per cent and the United States with 22 per cent.”
Strong said that plant-based protein consumption accounts for 0.3 per cent of fresh meat volume sales in Australia, compared to red meat which makes up over a third of total volume of sales.
Meanwhile the effects of COVID-19 have created “heightened uncertainty and volatility in the global marketplace, resulting in a shift in consumer needs and purchasing behaviour throughout 2020”.
“An increased number of consumers are seeking products that are deemed trustworthy, healthy and of a high quality,” Strong said.
“While the long-term economic impact of COVID-19 will no doubt be severe, Australia’s standing as a provider of high-quality red meat product, both domestically and globally, has somewhat sheltered the sector from the worst of the economic fallout.”
The State of the Industry Report 2020 can be accessed here.
