MICA - Conference September 2016 Michael Finucan General Manager - PowerPoint PPT Presentation

MICA - Conference September 2016 Michael Finucan General Manager – International Markets

About MLA Meat and Livestock Australia Ltd (MLA) strives to be the recognised leader in delivering world class research, development and marketing outcomes that benefit Australian cattle, sheep and goat producers. Working in collaboration with the Australian Government and wider red meat industry, MLA's mission is to deliver value to levy payers by investing in initiatives that contribute to producer profitability, sustainability and global competitiveness . MLA is a producer owned, not-for-profit organisation and not an industry representative body.

Global footprint Moscow London Beijing Seoul Brussels Tokyo Washington Shanghai Taipei India Hong Kong Dubai Ho Chi Minh City Kuala Lumpur Manila Singapore Armidale Jakarta MLA offices MLA staff Sydney MLA Representatives

Market Growth and Diversification Market Knowledge Market Access Marketing and Promotion Build deep market intelligence and Reduce barriers to trade and defend Aggressively promote Australia's point of consumer insights favourable access conditions difference to grow demand Market Ma et Co Cons nsumer umer Busin Bu iness ess Eco cono nomic mic Ac Acce cess Tec echnic hnical al Ac Acce cess Br Bran and d Bu Buil ilding ding int ntelli elligenc ence insi nsights ghts De Develop elopment ment

Beef Overview 5 5

Significant change in production

Annual adult cattle slaughter 11 million head 10 9 8 7 6 5 4 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017f 2019f 2021f Source: ABS, MLA estimates

Adult carcase weights set to hit new records 315 295 275 Kg/head 255 235 215 195 175 Source: ABS, MLA estimates

Australian Beef exports Frozen Chilled Thousands 1,400 1,200 10 year ave – 10.285 mill YTD 1,000 -21% 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - 2016 - YTD YTD Source: ABS, MLA estimates

Beef exports by market -16 YTD Japan North America Korea Greater China Southern Asia EU MENA Other Thousands 1400 1200 1000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - 2016 - YTD YTD

Market Access – Key driver of growth

Next phase of access

China Overview 14 14

China growth Growing middle class Growth of modern retail Food safety - Health concerns Convenience 15 15

Chinese meat consumption 16 16

Beef exports - China Frozen Chilled Thousands 180 160 140 YTD 120 -32% 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - 2016 - YTD YTD Source: ABS, MLA estimates

Beef to China region* from major exporters 450 ‘000 tonnes swt 400 350 300 US Uruguay 250 Australia 200 India NZ 150 Brazil 100 50 0 Source: Global Trade Atlas, quarterly basis *=Direct shipments from each respective country to aggregated China, Vietnam and Hong Kong

Challenges: supply chain

Opportunities - Growth of modern retail

Beef exports - US Frozen Chilled Thousands 450 YTD 400 -41% 350 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - 2016 - YTD YTD Source: ABS, MLA estimates

Beef exports - US Frozen Chilled 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - 2016 - YTD YTD Source: ABS, MLA estimates

Continuing growth in Grass fed sector

Beef exports – US Chilled Grassfed 80 Thousands 70 YTD -29% 60 50 40 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 - 2016 - YTD YTD Source: ABS, MLA estimates

Thank you