IN MARKET GROWING DEMAND Here’s a snapshot of how MLA is taking a collaborative VIETNAM approach to strengthen supply chains in Vietnam. Developing capability per night, with a reliance audience for premium food MLA supported the on Australian cattle. This products,” she said. appointment of three supply requires specific investment “Strong modern retail chain business development in technology and skills and cold supply chain managers in January 2019 such as replacing ground infrastructure make this towork within Vietnamese process ing with rails. an attractive region for commercial supplychains for Supporting fewer, more exporters. MLA is working 12 months. efficient businesses closely with Austrade on Themanagers helped improved product market‑access issues for Vietnam population companies deal withb consistency and quality, oxed beef, as well as 2019: 96.5 million commercialobstacles to creating an advantage supporting foodservice and 2023 projection: marketdevelopment,suc ash for Australian cattle and modern retail businesses 99.7 million addressingechnicalt issues improving the ability to in Vietnam with research byimprovingstaff capability ensure positive animal insights about consumer Australian beef exports and infrastructureto produce welfare outcomes. preferences.” to Vietnam a consistent product. This program will allow She said Vietnam’s modern Volume:11,503t shipped Forexamp, one businele ss the importer to move from retail infrastructure is weight (swt) developmentmanager supplying 30 abattoirs which developing quickly from a Value: $90 million workedwith a Vietnam collectively processed small base and there’s a abattoirwhich processes 70,000 head of cattle per small but strong hypermarket Australian sheepmeat: Australianr to just six facilitieyeacattle to overcome s, which and supermarket presence exports to Vietnam staffresistance to replacing will process a combined which could open up Volume: 1,254t swt traditionalground processing 100,000 head per year. more opportunities for methodswith modern Australian red meat in the Value: $12 million more Future opportunities slaughter systems While Vietnamese consumers mid‑to‑long term. . Vietnam consumption: Asa resultthe, abattoir have a strong preference for The foodservice sector Beef consumption increasedthroughput from fresh meat, which continues presents more challenges; in Vietnam is 4.6kg/ five heada for example, Vietnamesenight to 140 headto support growth of the person/year. Although pernight and has investe ind consumers spend less perlive cattle export industry, consumption is less than additionalmodern technology increasing consumer capita on dining out than pork, poultry, fish and becausehet staff now do’tn other nations in the region,preference for quality, safe seafood, beef is widely wantto go back to the old food products creates and although the number of used in Vietnamese processing techniques. opportunities for Australia foodservice outlets is set to cuisine, notably in to explore the higher‑end grow, fine dining has a small pho bo and bun bo MLA has also just finished segments of boxed beef and share of the overall market. (rice noodle soup with a project to transfer higher‑quality beef produced To address these challenges beef). Lamb remains a knowledge about processing, locally from Australian and actively engage with niche component in the btuchery and retail from theb the Vietnamese trade sector,cattle exports. Vietnamese diet. Australian eef industry into Ellen Rodgers, MLA MLA will host a True Aussie the Vietnamese supplychain International Business Academy in Ho Chi Minh City Trade agreements with (pg32)ae. Manager – Southern Asia, in May for chefs, foodservice Australia Improving efficiency said research by MLA reveals managers and retail butchers. Australia and Vietnam MLA is working with a stronger than average The event, which has been have two free trade Vietnamese importer and economic growth in Vietnam’s held in Singapore, Indonesia agreements, the ASEAN– multiple Australian exporters Ho Chi Minh City, compared and the Philippines, provides Australia–New Zealand to herto otlidate their localconso cities in the region. information about Australian free trade agreement and supply chain. “Over the next five years, red meat production the Comprehensive and Thesystems, Meat Standardskely to createVietnam is liimportercurrently Progressive Agreement suppliescattle to 30 abattoirs more consumers with Australia and market for Trans‑Pacific innorthern Vietnam, which greater disposable income, insights, as well as practical Partnership. There is no incurs butisignificant compliance ncreasing the target chery sessions. ■ tax for live and imported costs and doesn’t provide a beef products. sustainable supply chain for Michael Patching Australian cattle. E: mpatching@mla.com.au Want to know more? With input from MLA, the Ellen Rodgers Check out mla.com.au/ importer will consolidate E: erodgers@mla.com.au market-snapshots for a their supply to six abattoirs, more in‑depth look at mla.com.au/prices-markets/overseas-markets/ key markets. all processing 50 head 49