Looking ahead to 2018, Meat & Livestock Australia have forecasted some good and some, potentially, bad trends for the global red meat industry in 2018. In this article you’ll find a summary of some of the more intriguing points of MLA’s Global wrap and a link to the original article below.
It was another strong year for Aussie beef and sheepmeat, even with increased competition in some key export markets like Korea, Japan, and the US. Continued price pressure on the markets didn’t affect the exports of Aussie red meat either, with 2017 beef exports in line with 2016’s levels and sheepmeat exports recording their largest export year since 2014. But even with the success of red meat exports in 2017, there are some key factors driving increased global competition in 2018.
According to the USDA, US beef production is expected to increase 4.6% while exports are projected to increase by 4% in 2018. This increase would mark the US’s biggest ever production year for beef, ultimately leading to increased competition in key export markets, specifically Japan and Korea. Likewise, the Brazilian and Indian herds are forecasted to increase as well, saturating the red meat export market even further.
With the increased supply, global beef prices are likely to come under pressure.
Even though there is expected to be an ongoing strong demand in global markets, Australian Beef Exporters will need to continually position themselves as superior suppliers of high quality product.
Click on the link below for the full article including the outlook for Sheepmeat and a full breakdown of the key factors driving the Australian Red Meat Industry in 2018.