Middle East/North Africa update

By David Beatty, MLA International Business Manager, Middle East/North Africa

MLA – like many in the Middle East/North Africa region – is gearing up for Ramadan. We’re also in the middle of a new campaign to reinforce Australia’s halal integrity and food safety record. Looking longer term, we see this region continuing to offer challenges – as well as many unique opportunities for Australian red meat.

Ramadan campaign
Muslims in the Middle East/North Africa region are busy making preparations for Ramadan, a major religious festival for their faith. It is celebrated during the ninth month of the Islamic calendar – this year it occurs from 26 May to 24 June. Ramadan is characterised with fasting, self-sacrifice and prayer. Fasting is observed from sunrise to sunset each day. When breaking the fast after sunset, family and friends congregate to share a meal, with lamb a favourite among local families.

In the lead up to Ramadan, MLA is partnering with two major retailers in a social media campaign. A series of short video clips will focus on lamb recipes that can be shared with family and friends. The videos ‘borrow’ from the ‘You Never Lamb Alone’ concept used in MLA's Australian lamb campaigns. Translated into Arabic, the tagline used will be ‘Meat loves a crowd’. Clips and content will be shared across MLA’s and the retailers’ social media platforms during the week-long campaign.

Halal campaign
Following a recent scandal involving Brazilian halal meat, MLA has commenced a halal campaign to reinforce Australia’s position as a trusted supplier of safe, consistent, halal red meat in the region. The campaign is centred in Saudi Arabia with video clips, infographics and radio advertising all emphasising Australia’s commitment to animal welfare and halal integrity.

Regional challenges
Turning now to some of the current challenges, the region has experienced a general economic downturn due to lower oil prices. This has impacted government spending and tourism, both within the region and from Europe and other western countries.

Up to 90% of food is imported in the Gulf Cooperation Council (member states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), so there is tremendous competition, particularly for beef. Almost all beef exporting countries have access to some or all parts of the region. At the same time, Australian supply constraints have seen prices increase, placing enormous pressure on our product in this price sensitive market.

…and plenty of opportunities
Despite the challenges, the region offers plenty of opportunities for Australian red meat. Food security remains top of mind in the region and the need for consistent, safe, halal product.

The region is diverse, with differences both within and between countries. This presents niche opportunities for high value products in foodservice and retail segments. Organic, natural and hormone-free attributes are gaining a foothold and are anticipated to grow rapidly, starting from a low base. Such a diverse region also means that all cuts can find a home in the region.

Economic and population growth forecasts look bright, with the population of the United Arab Emirates expected to continue to grow rapidly through to 2030. Tourism prospects are also optimistic with Dubai World Expo in 2020 and the Qatar World Cup in 2022.

More information
David Beatty
MLA International Business Manager, Middle East/North Africa
dbeatty@mla.com.au