Meat Industry Analysis in Australia

Meat Industry Analysis in Australia: PLAGIARIZED SAMPLE-ORDER YOUR PAPER NOW

Australia is widely recognized as one of the world’s largest producers of the commercial livestock and also a leader in the exportation of the red meat. Currently, the country’s’ off farm meat industry ranges at A$ 17 billion. The meat sector in the country can be further classified into the cattle industry, sheep industry and the goat industry. The cattle industry in Australia involves 58% of all the agricultural activity. Approximately two hundred thousand people are employed in the red meat industry. In the year 2015-2016 meat sector contributed 25 percent of all the agricultural products in the country. Australia is the sixth large consumer of the beef in the world. In 2016-2017 the domestic consumption per person averaged 25 kilograms per person. Besides, beef is the second most popular fresh meet consumed in the country after the chicken. In 2016-2017 Australia exported 74 percent of its total beef (Meat & Livestock Australia Limited, 2016).

The consumption of sheep meat in Australia ranged at $11o billion in the year 2015-2016. Australians are among the highest sheep eat consumers in the world and in the year 2015-2016 alone each person consumed an average of 10.2 kilograms. Apart from domestic consumption Australia is ranked as the largest exporter of the sheep meat in the world (Meat & Livestock Australia Limited, 2016). On the other side, Australians are also goat meat consumers. However, the Australian continent is a small producer of the goat meat but one of the largest goat meat producer. Its two major markets are the Taiwan and the United States. Besides, Taiwan and the United States, Australia can also exports its goat meat in India, Pakistan and Japan. The three countries are the largest goat meat consumers but they are neither largest importers nor exporters (Limited, 2016). In 2015-2016 the goat meat export amounted to A$258 million.

The data analysis describes the nature of the meat industry in Australia. It also gives the reader some of the potential opportunities that can be available for the meat producers in the country. In the following discussion, this report will use the above data as wells other information from different sources to highlight opportunities and challenges that accrue this sector.


From the above data it has come out clearly that Australians are the largest consumers of the beef, mutton and goat meat in the world. Secondly, the country produces the three types of meet in large quantities creating a surplus in that in turn is exported to the foreign markets. Therefore, the meat sector in Australia has both domestic market and international market as they major areas where the producers can use opportunities for growth.

Diversification of Exports

Australian export its meet almost in very corner of the world. Bearing in mind that it faces competition from other meat producing countries it is important for the meat sector to diversify its meet products. The meat producers in Australia can diversify their exports through exporting fresh meat, the canned meat and refrigerated meat. Besides, the producers can also convert meat into other products that acts as a supplement of the meat. For example, the producers can dry the meat, grind and pack it into boxes to be exported in the international market. This will increase the company marketing opportunities in the global arena.

Entering into Economic Partnership Agreement with other Countries

Australian producers through the federal government can benefit from the economic integration with other nations. For example, Indian, Japan, China, Malaysia and USA are some of the largest consumers of the Australian meat products (Barbour, et al., 2017). Therefore, entering into economic agreement with these countries before the competitors will give the meat producers in Australia to expand their businesses in the international market.

Integrating Australians Meat Eating Culture with high Quality Eating

From the earlier data provided in this report it evident that the Australians are the largest consumers of the meat in the world (Fowler, 2016). Associating this culture of high quality meat eating means that the producers will brand their products appropriately and the consumers will be willing to pay high. As a result the meat producers will realize higher profit. This is untapped opportunity that Australian meat producers should focus on utilizing.

High Demand for the Premium Quality Meat

Currently, there is a huge demand of the quality meat. Australia has been exporting meat in the international market for over sixty years. This has enable the country to enhance its reputation as the one of the largest and best meet exporters. Besides, there is expected growth of the demand of meat in the international market to 376 million tons by 2030 (Dearin, 2015). This gives Australian meat producers an opportunity to improve the quality of their meat as well take advantage of the growing international market by exporting more meat products.


International Competition

Apart from the domestic market Australia also largely export its meat products. The Australian meat faces stiff competition especially from India, Brazil and the United States as a result of live cattle trade (McConchie, 2016). Additionally, these countries experience lower cost of operations than Australian. Meat producers in the country can overcome this through value based marketing.

High Regulatory Costs in the Supply Chain

The Australian meat sector is highly fragmented hence increasing the cost of inspection by the government authorities (McConchie, 2016). This increases the prices of the exported meat in the international market.

Lack of cooperation between animal suppliers and meat processors.

The lack of transparency in this industry has led to establishment of tension as well lack of reliability among the meat suppliers and the processors (Natalia, 2017).

Fluctuating Meat Prices in the International Markets

As a result of stiff competition and global financial crisis the price of the meat tend to fluctuate sometimes leading into losses (Australian Beef Association Inc, 2014).


There a lot opportunities as well challenges facing the Australian meat sector. However, the opportunities supersedes the challenges. The Australian meat industry can use the available opportunities to expand its domestic and international operations. This will give the industry to claim and maintain competitive advantage that it can use to rip the benefits of the market growth in future. With sustainable competitive advantage the industry will be able to overcome both international competition and fluctuating meat prices. On the other side, the industry can request for the government support to eradicate the challenges of high cost of regulation as well as lack of cooperation between the suppliers and meat processors in the industry.


Australian Beef Association Inc, 2014. A Summary of Financial and Marketing Challenges Faced by Cattle Producers , Mowbray, Launceston: Australian Beef Association Inc .

Barbour, L., Locke, S. & Fitzgerald, B., 2017. Australian meat industry wins better access to lucrative Chinese market. [Online]
Available at: http://www.abc.net.au/news/rural/2017-03-24/nrn-more-chilled-beef-to-china/8379284
[Accessed 2 September 2017].

Dearin, C., 2015. GCC Markets: Five Big Opportunities for Australian Food Exporters. [Online]
Available at: https://dearinassociates.com/gcc-markets-five-big-opportunities-for-australian-food-exporters/
[Accessed 2 September 2017].

Fowler, C., 2016. Australian sheep producers set to benefit from increased appetite for lamb in 2017. [Online]
Available at: http://www.abc.net.au/news/rural/2016-12-12/next-year-looks-good-for-sheep-producers/8102352
[Accessed 2 September 2017].

Limited, M. &. L. A., 2016. Australia’s goatmeat industry, s.l.: Meat & Livestock Australia Limited.

McConchie, R., 2016. Red meat sustainability report offers a feast of ideas to tackle challenges. [Online]
Available at: http://www.abc.net.au/news/rural/2016-10-26/report-outlines-challenges-red-meat-processing-industry/7968482 [Accessed 2 Septmeber 2017].

Meat & Livestock Australia Limited, 2016. Australia’s beef industry, s.l.: Meat & Livestock Australia Limited.

Meat & Livestock Australia Limited, 2016. Australia’s sheep industry, s.l.: Meat & Livestock Australia Limited.

Natalia, L., 2017. Future of Australia’s meat industry up for discussion. [Online]
Available at: https://www.northernstar.com.au/news/future-of-australias-meat-industry-up-for-discussi/3139259/
[Accessed 2 September 2017].

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