IN MARKET GROWING DEMAND ON THE GROUND EU The EU presents unique challenges and opportunities for the Australian red meat industry. As Brexit talks continue and the Australia–EU FTA builds momentum, who better to provide an insight than these two ‘industry insiders’? EU population: • 2019: 510m • 2023 projection: 511m Australian beef exports to EU (2018–19): ANDREW McDONALD JOSH ANDERSON • volume: 14,601t Export manager at NH Foods and MLA International Business Manager – shipped weight (swt) Chair of the EU–UK Red Meat Market Europe and Russia • value: $229m Access Taskforce You’re based in MLA’s London office – • share of EU beef How have you seen the EU market change what is the word on the street when it imports: 7% in your 18 years as a red meat exporter? comes to Brexit? The EU has changed from virtually a sole Brexit has dominated the airwaves but Australian sheepmeat: focus on the UK trade to a continent‑based it’s been more heat than light in recent exports to EU (2018–19) market. The UK consumes similar cuts as months. The temperature has definitely • volume: 13,469t swt Australia (rump, loins and roasting cuts), dialled up with the new Prime Minister and but changes to market access and the his team. There’s a battle for supremacy • value: $132m emergence of grainfed trade has driven between those who want out of the EU on • share of EU sheepmeat export of all cuts for a variety of recipes 31 October under any circumstances and imports: 11% and butchering across all EU cultures. I’ve those who favour a softer landing or even also seen more product branding in recent the possibility of the UK staying in the EU. EU consumption: years, which creates an opportunity for What could Brexit mean for Australia? The EU is a large our industry, through MLA, to market the Brexit has brought about uncertainty in per‑capita consumer unique traits and quality of Australian red terms of Australia’s access to the European of beef by global meat to a diverse group of consumers. market. Anything which threatens standards, but Why should Australian red meat producers disruption to market access and existing consumption levels vary care about what happens in the EU? supply chains is not a good thing. However, between countries. The Europe is an attractive market as consumers there are opportunities for increased trade largest consumers are demand high‑quality imported beef and as the Australian and UK governments France (23kg/person/ sheepmeat. Of all the markets Australia have both stated their ambition for an year), the UK (18kg), exports to, the EU returns one of the highest FTA after Brexit, with opportunities for Germany (14kg) and Italy average prices. Australian producers have Australian red meat producers. (16kg). Sheepmeat plays responded to this demand by developing What three things should Australian red a minor role in consumer dedicated supply chains and focusing on meat producers know about Brexit? diets and consumption meeting market‑specific requirements. • It’s extremely messy and complicated, However, Australian red meat exports is primarily concentrated are still constrained by disproportionately which means the outcome is in western Europe, low‑volume import quotas and high unpredictable. particularly the UK, above‑quota tariffs, and changing that • It won’t be done on 31 October. Even France and Spain. landscape is a huge opportunity. if the UK leaves on that date, they’ll be negotiating the practical arrangements EU households What is the message for Australian with the EU for years to come. earning more than producers? • There’s likely to be a stronger Australia– US$50,000/year Keep doing what you’re doing – our EU UK trade relationship in the long‑term. ■ • 2019: 76.6m consumers love the Aussie outback, the people, the cattle, our production systems. • 2023 projection: 99.2m Some see political uncertainty within the Andrew McDonald EU–UK market as a risk, but I see it as a E: amcdonald@nh‑foods.com.au huge opportunity. Quotas are currently Josh Anderson Want to know more? E: janderson@mla.com.au Check out mla.com.au/ managed by customers, so we need to market‑snapshots for a be on the front foot to deliver what they mla.com.au/market‑access‑beef more in‑depth look at want so they choose Australian beef over key markets. other suppliers. 45