MICA - Conference September 2016 Michael Finucan General Manager - - PowerPoint PPT Presentation

MICA - Conference

September 2016

Michael Finucan General Manager – International Markets

About MLA

Meat and Livestock Australia Ltd (MLA) strives to be the recognised leader in delivering world class research, development and marketing outcomes that benefit Australian cattle, sheep and goat producers. Working in collaboration with the Australian Government and wider red meat industry, MLA's mission is to deliver value to levy payers by investing in initiatives that contribute to producer profitability, sustainability and global competitiveness. MLA is a producer owned, not-for-profit organisation and not an industry representative body.

Global footprint

Sydney

Jakarta

Tokyo Beijing Dubai Brussels Washington

Armidale Kuala Lumpur Manila Taipei

Shanghai Ho Chi Minh City

Singapore MLA offices

London India Moscow Hong Kong

Seoul

MLA Representatives MLA staff

Market Growth and Diversification

Market Knowledge

Ma Market et int ntelli elligenc ence Co Cons nsumer umer insi nsights ghts Build deep market intelligence and consumer insights

Market Access

Eco cono nomic mic Ac Acce cess Tec echnic hnical al Ac Acce cess Reduce barriers to trade and defend favourable access conditions

Marketing and Promotion

Bu Busin iness ess De Develop elopment ment Br Bran and d Bu Buil ilding ding Aggressively promote Australia's point of difference to grow demand

5 5

Beef Overview

Significant change in production

Annual adult cattle slaughter

4 5 6 7 8 9 10 11

1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017f 2019f 2021f

million head Source: ABS, MLA estimates

Adult carcase weights set to hit new records

175 195 215 235 255 275 295 315 Kg/head

Source: ABS, MLA estimates

Australian Beef exports

200 400 600 800 1,000 1,200 1,400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - YTD 2016 - YTD

Thousands

Frozen Chilled

Source: ABS, MLA estimates

YTD

• 21%

10 year ave – 10.285 mill

Beef exports by market -16 YTD

200 400 600 800 1000 1200 1400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - YTD 2016 - YTD

Thousands Japan North America Korea Greater China Southern Asia EU MENA Other

Market Access – Key driver of growth

Next phase of access

14 14

China Overview

15 15

China growth

Growing middle class Growth of modern retail Food safety - Health concerns Convenience

16 16

Chinese meat consumption

Beef exports - China

20 40 60 80 100 120 140 160 180

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - YTD 2016 - YTD

Thousands

Frozen Chilled

YTD

• 32%

Source: ABS, MLA estimates

Beef to China region* from major exporters

50 100 150 200 250 300 350 400 450

‘000 tonnes swt

US Uruguay Australia India NZ Brazil

Source: Global Trade Atlas, quarterly basis *=Direct shipments from each respective country to aggregated China, Vietnam and Hong Kong

Challenges: supply chain

Opportunities - Growth of modern retail

Beef exports - US

50 100 150 200 250 300 350 400 450

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - YTD 2016 - YTD

Thousands

Frozen Chilled

YTD

• 41%

Source: ABS, MLA estimates

Beef exports - US

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - YTD 2016 - YTD

Frozen Chilled

Source: ABS, MLA estimates

Continuing growth in Grass fed sector

Beef exports – US Chilled Grassfed

10 20 30 40 50 60 70 80

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - YTD 2016 - YTD

Thousands

YTD

• 29%

Source: ABS, MLA estimates

Thank you