Beef

The Beef Cattle Farming industry is one of Australia’s larger agricultural industries. It is estimated to represent about 20% of the revenue in combined agriculture, forestry, and fishing industries. Although average consumption of beef (per person) has declined over recent decades, largely in favour of chicken meat consumption, it remains relatively high. Per capita consumption of beef in Australia is around 32 kilograms per capita.

Australia’s beef industry is dominated by large scale production and processing facilities developed to service domestic and export markets. Beef industry revenue declined during the early 2000s to reach a revenue trough of $9.08 billion in 2012-13. It has rebounded in recent years to reach an estimated $13.41 billion in 2016-17. Victoria’s share of this production value is about 18.4% or 2.47 billion. Over the same period (2012-13 to 2016-17), the number of farm enterprises in Australia involved in beef farming has decreased slightly from 37,835 to 37,100.

Strong demand for Australian beef in overseas markets has been a major contributor to the industry’s recent, and projected, revenue growth. Increasing meat consumption arising from higher incomes in overseas markets is expected to boost industry demand. If the projection is correct, it will keep cattle prices relatively high.

Price. This is a major basis for competition. The farmgate and/or saleyard price for cattle reflects prices in international markets. Prices also vary inversely with supply and directly with demand conditions overseas.

Quality. Efforts are being made to differentiate cattle on the basis of quality. For instance, Australia has begun to market beef based upon the rearing of cattle in a fully organic manner. This is one method of differentiating Australian cattle from overseas competitors. Feedlots are being used to deliver specific beef meat attributes to some markets, especially Japan.

Promotion and Branding. More producers are differentiating product on the basis of production systems, animal welfare, and other marketing points of difference (such as region of origin and food safety). This reflects a shift from generic commodity based marketing.

Health and Dietary Value. Beef competes with other meats by promoting its health credentials. Consumer concerns over fat and cholesterol have led beef cattle farmers to focus on the production of leaner animals, mainly for domestic markets.

Exchange rates. As a globally traded commodity, beef producers compete with foreign beef cattle producers. Factors that influence this competitiveness include exchange rates, trade barriers, and overseas supply levels.