Australian exports to our two biggest Asian beef markets are forecast to grow this year despite the strengthening Australian dollar and supply restrictions.

In South Korea recently, after a visit to Japan, Meat and Livestock Australia (MLA) managing director Mark Spurr said ongoing promotions in both countries had been critical to positioning Australia as a supplier of quality beef.

Mr Spurr had been travelling with MLA chairman David Crombie and MLA director Guy Fitzhardinge, meeting customers and trade industry representatives in both countries.
"Customers we have met in both Japan and Korea have continually referred to our reputation for quality beef and product integrity, and have praised the promotion efforts of MLA and industry," Mr Spurr said.

Over the past 12 months in Japan a major MLA promotion program (funded with support from the Australian Government, processors and industry) has involved more than 4,000 in-store demonstrations, trade seminars, retail promotions and consumer awareness campaigns.

Mr Spurr said AC Nielson survey results had put awareness of the Aussie Beef brand among Japanese housewives at an incredible 95 percent.
He said the strength of consumer demand in Japan was evident in the stronger export prices for our beef to Japan.

In Korea, the Hoju Chungjungwoo brand launched last year – promoting the clean, natural and safe attributes of Australian beef – already enjoys 30 percent brand awareness.

“Total year-to-date sales to Korea are five percent above last year’s levels, but what is more exciting is the growth in the higher value chilled beef exports which are 70 percent higher at 2,047 tonnes,” Mr Spurr said.

“Ongoing promotion in both Japan and Korea are important in maintaining and growing our market position, particularly given the strong Australian dollar and the tight supply pressures because of the drought.”

Mr Spurr said product integrity was a key competitive advantage for Australian beef and sheepmeat in overseas markets and one the industry should strive to protect and build.

He said industry programs such as the National Livestock Identification Scheme (NLIS) and the development of the new on-farm QA program, would ensure the Australian red meat industry had the tools to continue to enhance product integrity in the future.

Mr Spurr’s comments follow a recent failed attempt by the Japanese opposition parties to introduce legislation requiring individual cattle identification for imported beef or for imported beef to be labelled as non-traceable.

Lobbying by MLA, the Australian Government and the Japanese meat trade helped ensure the proposed legislation for imported beef was not introduced.
“The proposals put forward would have discriminated against imported beef and we believe would have been in breach of WTO agreements,” Mr Spurr said.

“However, irrespective of this, it is important that the Australian beef industry continues to enhance product integrity to maintain our competitive edge. Australia is already well placed in this area through the development of NLIS and the new on-farm QA.”