Pillar 2

Pillar 2: Market growth and diversification

Improving market access is the primary way for the Australian red meat industry to grow demand and diversify markets.

This pillar strives to reduce economic and technical barriers to trade, defend existing gains in trade and proactively identify and develop new business opportunities.

It also recognises the integrity systems that underpin marketing efforts to differentiate Australian red meat from other red meat competitors and proteins.

MISP

Meat Industry Strategic Plan (MISP) 2020 priorities

Investments Investment source KPIs

Highlights

  • Two free trade agreements signed in 2018
  • Industry on the cusp of accessing the Peru market for the first time
  • UAE government extended accepted shelf life limits for Australian vacuum-packed meat
  • 7 percentage point increase in consumers who believe beef is suitable for everyday meals
  • More than 50 million Japanese consumers reached during 'Are you Genki?' campaign
  • 110,000 steak sandwiches consumed during The Coffee Club campaign
  • 125,000 visits from 25,000 users to Rare Medium e-magazine
  • 9.59% increase in domestic lamb sales during summer lamb campaign

Efficiency and value in trade and market access

Australian red meat faces tariffs, quotas and technical barriers to trade across the globe, imposing billions of dollars in additional costs across the value chain. These barriers also prevent or restrict trade which limits the diversity of markets and, consequently, reduces the number of potential customers for Australian red meat.

In response, MLA collaborates with industry stakeholders including the Australian Government, Australian Meat Processor Corporation (AMPC) and Australian Livestock Export Corporation (LiveCorp) to drive growth in exports. MLA does this by prioritising and taking action to reduce economic and technical barriers to trade in global markets.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The long-awaited Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP) was signed in Santiago, Chile on 8 March 2018.

The CPTPP comprises 11 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam.

Additional beef access to Mexico

While the CPTPP will be the most significant way to reap long-term benefits for Australian red meat exports to Mexico, the Mexican Government has temporarily reduced tariffs on key imports, including beef, by establishing a tariff rate quota, in response to inadequate domestic beef supplies and corresponding price rises.

Highlights

EU trade negotiations underway

The Australian Minister for Trade, Hon Steven Ciobo MP, and the European Commissioner for Trade, Cecilia Malmström, launched Australia–European Union Free Trade Agreement (A–EU FTA) negotiations in Canberra on 18 June 2018.

Peru–Australia Free Trade Agreement (PAFTA)

Australia and Peru signed the Peru–Australia Free Trade Agreement (PAFTA) on 12 February 2018, enabling the Australian red meat and livestock industry to access opportunities in a new and growing market.

New shelf life management tool

MLA and the Tasmanian Institute of Agriculture have developed a new shelf life management tool for beef and lamb.


Marketing and promoting Australian red meat and livestock

With Australian red meat facing increasing competition from other red meat suppliers and protein products in global markets, the industry must aggressively promote its superior points of difference to global customers and consumers – safety, quality and traceability.

MLA also segments markets based on the size of the opportunity and the risks. MLA’s focus in the domestic market is to ensure beef and lamb remain popular meal choices by focusing on Australian red meat’s value proposition and business development.

Investment
Launch of 'Australian Beef: the Greatest'

MLA launched its new domestic beef marketing platform in 2017–18 – ‘Australian Beef: the Greatest’ which positions beef as the humble leader of all proteins.

It evolves from the previous ‘You’re Better on Beef’ campaign and inspires consumers to reconnect with beef by incorporating messages spanning versatility, nutrition, provenance, sustainability and eating quality.

Summer lamb’s musical makeover

MLA’s annual summer lamb campaign launched in January 2018 with a long‑form advertisement, which saw a modern-day barbecue get a Broadway musical makeover and resulted in 2.1 million unique views online.

Building on the long-established ‘We Love Our Lamb’ brand position of unity and inclusivity, the integrated campaign was designed to inspire people to put aside their differences, big and small, and come together over lamb.

Release of market snapshots

MLA expanded its range of market snapshots in February 2018 to provide producers and industry stakeholders with detailed insights into what is driving demand for Australian product in global and domestic markets.

The snapshots cover 11 key markets for beef and eight for sheepmeat, while the goatmeat industry is covered by a global snapshot.

Coffee Club collaboration

A partnership between MLA and national café chain, The Coffee Club, saw Australian beef take centre stage in a reinvention of the Australian classic: the steak sandwich.

The Coffee Club launched three new steak sandwiches in nearly 300 restaurants across the country in April 2018, with promotions including MLA’s domestic marketing branding ‘Australian Beef: the Greatest’.

Rare Medium platform launched

The Australian foodservice sector generated $45 billion in 2016, accounting for 50 million meals/week, making it a crucial channel to the ongoing success of the red meat and livestock industry.

MLA’s dedicated foodservice program, Rare Medium, seeks to ensure Australian red meat remains relevant and retains its place on domestic foodservice menus while also increasing understanding and use of lesser-known cuts.