Asia Today 2008 - Lamb and Sheep to Asia

The Forum was held Thursday, 14. August 2008, 09:30 am to 04:00 pm in the premises of the Cowra Golf Club and saw 100 participants.

The programme, the presentations and a short summary are available for download below.

Asia Today 2008 Programme

Chris Groves (Sheepmeat Council Australia)
Overview of the Australian Sheep Industry

Glen Thompson (MLA)
Diversifying into new markets - South East Asia/Chinas

Brent McLeod (DPI)
Targeted opportunities for lamb exports to China

Ashley White (DPI)
Target market and requirements

Brent McLeod (DPI)
Engaging with the supply chain and the benefits to the NSW sheepmeat industry

Gordon Refshauge (DPI CRC Sheep)
Information Nucleus Flock 2007-2014

Mick Keogh (Australian Farm Institute)
Climate change: opportunities and threats

Prof. John Chudleigh (analysing agriculture)
Grain markets and the red meat industry

Summary

The U.S. presently is the most important export market for Australian lamb and the Middle East the most important for Australian mutton. Much of the future potential seems to be in Asia, especially in China, but also in countries not in the portfolio yet, like the Philippines. China already is an important and complementary market, taking low value breasts and flaps for the traditional hot pot restaurants. There is, however, potential to trade higher value cuts. The complementary with higher value cuts is that the carcass weights and specifications are similar in the Australian domestic market and the Asian target markets. With Australia and New Zealand being the only relevant lamb suppliers on the world market, securing the increasing demand and maintaining reasonable price levels for a meat with already high prices appears to be rather the challenge.

With the overall perspectives looking promising, further genetic progress, improvement of the feed basis, productivity increases and maintaining a healthy sheep flock are required. With prices for energy, fertiliser, grains and land expected to remain high, keeping costs under control is crucial. Containing costs is essential to prevent the product price reaching prohibitively high levels, resulting in subsequent market losses. It can be expected that the emission trading schemes in Australia and elsewhere will indirectly contribute to rising input costs via rising input prices even if agriculture remains outside the scheme. Direct cost impacts from emission trading can be expected if agriculture is covered by the scheme and no exceptions are made for trade exposure or high costs, or if agriculture is not able to mitigate some of the emissions it produces.

Market research and a sound knowledge about the future markets are the precondition for related promotion campaigns, trainings for chefs and product information tailored to the specific needs of the Asian customer. Supply chain alliances can improve communication and trust between suppliers and buyers and secure the market.

With all this not just in mind but eventually turned into practice, the Australian and New South Wales sheep meat industry can look forward to a bright and prosperous future.