International market demand in 2020 is likely to see Japan and Korea remain major customers for quality Australian grainfed beef, but markets will be more diverse, embracing new destinations like Russia the Middle East, China and the EU .
Corey Watts at the Climate Institute sent this article through.
In fact much of the demand-led recovery for grainfed beef in the next few years is likely to be from emerging customers including Indonesia, Russia, China and the EU. At the retail consumer level, there will inevitably be greater emphasis on beef brand programs in 2020, both grainfed and grassfed.
Developing economies will seek a cost competitive product without all the brand frills, while more mature markets will become increasingly discerning over issues like environment and animal welfare integrity and traceability.
The unusually narrow price differential between grass and grainfed beef seen since 2008 is likely to again widen, as economies recover after recent tough times. The main constraints to cattle generally, and grainfed beef specifically on the 10 year horizon include labour access, the increasingly stringent and complex regulatory process, greenhouse gas and other environmental issues, and availability of water.
According to industry analyst and former Australian Lot Feeders Association president Malcolm Foster, grain supply is another constraint: “We’re obviously now in for a number of years of lower international grain prices. But the real derailer of the Australian grainfed industry in terms of competition is grain shortage in this country when it doesn't exist overseas...Imports may not be needed to meet significant supply deficits, but will be necessary to ensure the right price signals".
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