Navigating a changing meat export landscape

Australia's red meat exporters face no shortage of challenges, from geopolitical instability and rising freight costs, to evolving market access conditions and growing competition from overseas suppliers.

Despite the disruptions in recent years, logistics providers remain confident that the industry's adaptability continues to underpin Australia's reputation as a reliable supplier of premium meat products. 

Speaking on a recent episode of MLA’s On the Ground podcast, C.T. Freight National Perishables Manager, Christian Thomas, offered a behind-the-scenes perspective on the freight networks that keep Australian beef and lamb moving to customers around the world.

For Christian, logistics has been a lifelong pursuit. C.T. Freight was founded by his father Clive Thomas in 1981 and has evolved from an import-focused business into one of Australia's leading specialists in perishable exports. 

C.T. Freight is Australia's No.1 IATA-ranked freight forwarder for airfreight export tonnage with perishables accounting for the majority of its export volume.

Having spent 25 years in the industry himself, Christian has witnessed dramatic changes in both freight operations and the red meat supply chain, but few events have tested the sector's resilience as much as the recent conflict in the Middle East.

Air freight disruption exposes vulnerabilities

The conflict created immediate challenges for Australia's chilled meat exporters, particularly those reliant on air freight services into key Middle Eastern markets.

Christian described the disruption as a reminder of the uncertainty seen during COVID-19 when transport networks were interrupted almost overnight.

"A lot of the trade we do with chilled meat is into the Middle East," he said.

"What we saw was a very COVID-like reminder where all of a sudden flights stopped overnight."

The impact was significant as approximately 90% of Australia's export air freight travels in the cargo holds of passenger aircraft rather than dedicated freighters.

"Within a couple of days, we went from Emirates, Qatar and Etihad all operating multiple flights per day, to zero," Christian said.

The challenge extended well beyond red meat.

Middle Eastern airlines play a critical role in moving Australian exports ranging from fresh produce and pharmaceuticals to general freight, which meant disruptions were felt across numerous industries.

Finding new pathways

Despite the sudden loss of capacity, Christian said Australian exporters and logistics providers moved quickly to establish alternative routes.

New pathways through destinations such as Jeddah in Saudi Arabia and other regional hubs helped maintain trade flows while airports across the Gulf region faced disruptions.

As conditions stabilised in recent months, reliability has steadily returned.

"There were a couple of months there where we were watching the news every day to see what was happening overnight,” Christian said.

“But now that things have settled down in terms of conflict overall, the reliability piece is coming back to air freight."

The cost burden remains

While service reliability is improving, freight costs remain elevated.

One of the biggest drivers has been fuel prices, which surged following the outbreak of conflict.

"The price of fuel just skyrocketed and that's one of the biggest cost bases for airlines," Christian said.

The combination of higher fuel costs and reduced capacity created substantial pricing pressure. In some cases, freight rates into Middle Eastern and European destinations tripled or even quadrupled.

Although prices have eased from their peak, Christian said some freight rates remain roughly double pre-conflict levels depending on destination.

The impact has not been confined to only the Middle East. South-East Asian freight routes also experienced significant increases, highlighting the interconnected nature of global aviation networks.

"It really has had a global effect on pricing," he said.

Chilled exports present unique challenges

For exporters of chilled beef and lamb, logistics is about more than simply moving product from one destination to another. Maintaining product integrity throughout the supply chain is critical.

The sudden diversion of freight through alternative ports and airports created congestion in some locations not accustomed to handling such volumes.

Facilities in Oman and Saudi Arabia experienced heavy pressure as freight was redirected away from traditional Gulf gateways.

While those bottlenecks have largely eased, Christian said exporters continue to monitor how products are handled in destination markets, particularly where chilled meat trade is still developing.

China remains one market attracting close attention following expanded approval for chilled sheepmeat exports from additional Australian processing plants.

Christian noted that expectations for rapid growth have been tempered by rising lamb prices and the challenges of developing chilled supply chains in a market where frozen product has traditionally dominated.

"There was a lot of talk about big volumes of air freight going into China," he said.

"It probably didn't eventuate like people thought."

By comparison, established chilled meat destinations in the Middle East have developed extensive experience managing high-value fresh product.

Competition intensifies

While freight disruptions and market access issues have dominated recent discussions, Christian believed international competition remained one of the most significant challenges facing Australian exporters.

The Middle East continues to be a crucial destination for Australian carcase and boxed meat exports, but increased competition from lower-cost suppliers is reshaping the market.

"South Africa seems to be doing product much cheaper and at higher volumes, just taking a lot of market share throughout the Middle East," he said.

As Australian livestock prices remain historically strong, maintaining competitiveness against emerging suppliers will remain an ongoing challenge for exporters.

Technology offers opportunities

Looking ahead, Christian saw technology and digitisation as areas capable of improving trade efficiency.

While electronic health certificates were already possible for many export markets, widespread adoption continued to depend on importing countries recognising and accepting digital documentation.

Physical paperwork remains a critical requirement in many supply chains.

"There are certain times where an airline might lose some documents and that product might be held until we can present the originals again," Christian said.

Greater acceptance of electronic certification could reduce delays and improve supply chain efficiency, although he noted cooperation between Australian regulators and importing nations would be necessary to unlock those benefits.

Confidence remains

Despite recent volatility, Christian remained optimistic about the future.

The sophistication of Australia's processing sector, combined with the industry's reputation for quality and reliability, continued to support demand in export markets.

Reflecting on two decades in the industry, he said the transformation of Australian processing facilities had been remarkable.

"The level of sophistication and technology – it's unbelievable," Christian said.

"I think that's been part of the success for how Australia keeps such a strong reputation globally.

“The product is world-renowned and really does have the best reputation in the world."

Christian said C.T. Freight was always happy to support Australian exporters facing logistics challenges or looking to expand their products into global markets.

For exporters navigating an uncertain global environment, that reputation, combined with an increasingly adaptable logistics sector, may remain Australia's greatest competitive advantage.