Global marketing update - video diary from Sydney and China insights

04 March 2016

As a global marketing organisation, MLA has six International Business Managers based in key export destinations - each charged with promoting the superior safety and quality systems of Aussie red meat in order to gain better market access and grow demand.

Each month we hear from one of our International Business Managers for a quick catch up on their experiences in promoting Australia as a trusted source of safe, traceable and high quality red meat.

In our latest video blog, we hear from Michael Finucan, General Manager International Markets who was recently in Australia with MLA’s International Business Managers to consult with Peak Industry Councils and other industry stakeholders on their in-market marketing strategies. Here he explains how MLA is working across global markets in 2016 to grow demand for Australian red meat.

Michael is also MLA’s International Business Manager for China and Korea. He shares here some insights from China and some of the challenges and opportunities in this important market for Australian red meat:

“While the Chinese economy has eased recently, it is still expected to grow at more than 5% annually for the next five years, adding 2.3 trillion US dollars to the economy. For Australian red meat the growth in the upper middle class and affluent urban population is important, as this group is more likely to be able to afford Australian products. This sector is expected to grow from 43.4 million to 224 million people by 2022.

“Australia is well placed to capture this opportunity through our strong clean, green and safe positioning. With the recent entry into force of the China-Australia Free Trade Agreement, tariffs levied on beef and sheepmeat (12-25%) will be eliminated over nine years and tariffs on beef offal (12%) will be eliminated over four to seven years.

“A challenge in the next two to three years is Australia’s short supply and the increased competition in the Chinese market from South American competitors. Brazil has recently regained access with 16 plants registered to supply the market. Therefore, Australia must continue to promote its superior integrity system and supply chilled product to differentiate itself from its competitors.

“While the Chinese market offers many opportunities, it’s a large and diverse market with a number of challenges. In order to maximise these opportunities a detailed understanding of the market is being carried out with careful analysis of the sectors and channels that allow Australia to maximise its returns.”

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