IN MARKET GROWING DEMAND MARKET FOCUS m South-East Asia: an evolving marketplace MLA’s Ellen Rodgers working with foodservice professionals on Australia’s red meat supply chain. The value of Australian red infrastructure places red meat in one of non-tariff barriers hindering red meat meat exports to South-East of the fasting growing markets in the trade. The impact of this is estimated Asia has doubled over the world. However, the market is still at A$657 million a year (second only to past decade to be worth developing and, while populations are the barriers in Middle East). Barriers are A$2.1 billion at the end of June large, the number of households that largely rooted in religious requirements, 2018, exceeding the value of can afford premium, imported red meat divergence in recognised food is still half that of Australia. standards and governments balancing exports to China or Korea. meat affordability with a desire to Opportunities Australian product spans the spectrum Regional red meat consumption is protect local industries. of market segments, from chilled Wagyu forecast to grow 10% over the next Supplying halal markets means product steaks destined for airfreight to five-starfive years, beyond the capability of must be processed in dedicated hotels in Singapore, to beef trim suited Australia alone. processing facilities. While compliance for Bakso ball soup in Indonesia. is readily met, at times import authorities As the market evolves, and in the Demand for red meat in South-East presence of a range of low-cost have raised concerns over halal issues, Asia has increased substantially in competitors, Australia will increasinglyleading to disruptions in trade. Other the past decade and the region’s need to target premium consumer inefficiencies, such as delays in issue changing demographics – a young segments tocapture value. of quarantine certificates or import and expanding population and rising permits, add to the cost of navigating a wealth – underpin growth. Up against barriers complicated regulatory environment. Pursuing unrestrained access to To overcome these trade issues, Yet many markets in the region, such as global markets and being resilient to Indonesia, remain complex, fragmented the changing tide of protectionism Australian industry works with the and price sensitive, making navigating remains critical. Fortunately, red meat Australian Government on ongoing the trading environment a challenge. has featured in recent free trade engagement with customer country agreements (FTAs) with Japan, Korea authorities. A key component of this is South-East Asia is Australia’s fourth sharing insights into Australia’s robust largest beef export market and the and China, and, with a US trade pact already in place, Australian exports halal process as well as the suite of second highest in terms of value. enjoy open access to four of its largestindustry integrity systems that operate Ongoing market access improvements, markets. While Australia has an FTA throughout the supply chain. most notably the conclusion of the in place with ASEAN countries (the Wins for red meat Indonesia–Australia Comprehensive ASEAN–Australia–New Zealand FTA While tariffs in the region are Economic Partnership Agreement (IA– [AANZFTA]), a wide range of technical largely reducing, underpinned by CEPA) negotiations, will position Australianand economic barriers remain. the AANZFTA, red meat access to red meat to capture growing opportunities.While the fundamental statistics for red Indonesia has been further improved A young and expanding population, meat consumption across South-East under IA–CEPA. The conclusion of growing wealth and improving Asia are positive, there is a wide arraynegotiations were announced on 44