On the Ground Podcast – Global pressures reshape Aussie red meat

Australian red meat exporters are facing mounting pressure from supply constraints, disrupted trade flows and tightening market access conditions, according to Australian Meat Industry Council (AMIC) chief executive officer Tim Ryan. 

Speaking on Meat & Livestock Australia’s (MLA) On the Ground podcast, Tim said the sheepmeat sector had experienced “a really tough” 18 months, with tight supply and weak processor margins continuing to weigh on the industry. 

“There simply isn’t enough stock coming through the system,” Tim said, attributing the shortage largely to dry seasonal conditions across southern Australia. 

He noted the difficult supply environment had been compounded by global trade disruption and rising export costs, particularly into the Middle East. 

“A lot of the premium product that went there, particularly chilled airfreight lamb,” he said.  

Tim said exporters were also managing additional fuel surcharges and risk premiums, while Australian sheepmeat shipments into the United States (US) continued to face a 10% tariff. 

Despite the challenges, he said the sheepmeat sector continued to improve product quality and develop premium offerings, including high marbled lamb programs. 

“We’ll see ongoing focus on quality and improving the product – but we do need to be mindful that we are up against a pretty challenging economic environment.” 

Tim said lamb remained a discretionary protein in many global markets and exporters were increasingly competing against alternative premium proteins and seafood options in foodservice channels. 

“We’ve been so high-priced that we’re finding it hard to keep some of those channels,” he said, referring to the US market. 

On the beef side, Tim warned exporters were entering a more difficult trading period as Australia’s China beef quota allocation approached capacity. 

“We’re probably going to utilise our Australian allocation later this month, possibly early June,” he said. 

He added that additional tariff pressures in South Korea and restrictive import permit settings in Indonesia were creating further uncertainty across major export destinations. 

“We’re entering a bit of a window on beef right now that is particularly going to be a bit difficult to navigate,” Tim said. 

Tim also expressed disappointment over the stalled Australia-European Union free trade agreement negotiations, describing the EU as “the biggest affluent consumer market in the world”. 

“We were looking for some good news to provide a new opportunity,” he said. “The EU is probably the biggest opportunity out there.” 

This article was developed based on a recent episode of MLA’s On The Ground podcast.