A new analysis of the broader market conditions and economic contribution of the red meat industry has found 2023 was a year where the industry remained resilient despite volatility.

Meat & Livestock Australia’s latest State of the Industry report provides an overview of Australia’s red meat and livestock industry from the prior calendar year. While its contents may now be somewhat dated, it’s primary purpose comes in defining the importance of the industry during dialogue between peak industry bodies, local councils and others with government, regulators and others over funding support and similar matters.

According to MLA’s managing director Michael Crowley following three years of consistent growth, the red meat sector moved into a period of change, with 2023’s turn off resulting in peak production and slaughter numbers across beef cattle, sheep and goats.

However, weather conditions deteriorating in much of the country and a simultaneous declaration of an El Niño and Positive Indian Ocean Dipole (IOD) triggered a significant sap in confidence in the industry, pushing prices to concerning lows in the second half of last year.

“The industry was able to remain resilient in the face of this instability thanks to strong demand across a diversifying export market and strength in the processing sector,” Mr Crowley said..

“In addition, just as prices fell to unexpected lows, the market experienced a form of correction when conditions improved, as much of the country received favourable rainfall as we approached Christmas.”

Among the many statistics raised, the report says Australia remains one of the world’s largest consumers of beef, ranked third behind Argentina and the United States, with per capita consumption in 2023 averaging 23.4kg. That figure has been relatively stable since around 2017, despite rising retail prices, and has in fact risen a little since 2021 (see graph).

When combined with sheepmeat annual consumption of 7.4kg – the world’s highest – Australians on average consumed almost 31kg of red meat in 2023.

Industry turnover

In 2022–23, Australia’s red meat and livestock industry turnover was $81.7 billion, the report showed. This was 2.2pc below revised 2021–22 figures, though an increase of 6.3pc on 2018–19 figures.

New South Wales (28 percent), Victoria (24pc) and Queensland (22pc), represented the majority of turnover within the industry, with Western Australia (14pc), South Australia (8pc), Tasmania (3pc) and the Northern Territory (1pc) rounding out the remaining turnover.

Red Meat Advisory Council chief executive officer Susan Wakeford said the State of the Industry report highlighted the importance of Australia’s livestock production systems.

“The industry faced an unstable year in 2023 and came out the other side in a strong position with record production and strong export demand from all around the world,” Ms Wakeford said.

“Key to the industry bouncing back after the market downturn halfway through 2023 was the steadying of the domestic labour market and expansion of current and new processing plants which provided growth to Australia’s processing capacity.

“This allowed industry to absorb and manage the surplus of cattle and sheep turned-off over the year, helping industry reach records in both production and slaughter,” she said.

Exports

Red meat and livestock export value rose 3pc year-on-year to total $18.2 billion in 2022–23.

In 2022–23, the value of chilled and frozen meat accounted for 83pc of total meat and livestock exports at $14.7 billion, with live sheep and cattle exports accounting for 7pc at $1.3 billion. Co-products and further processed exports accounted for the other 10pc, valued at $1.7 billion.

In calendar year 2023, Australia was the world’s second largest beef exporter and the largest sheepmeat and goatmeat exporter.

In 2023, Australian beef and veal exports totalled 1.08 million tonnes shipped weight, up 27pc year-on-year. The United States emerged as Australia’s largest beef export market (in volume terms) in 2023, totalling 246,000t.

In 2023, Australian lamb exports totalled 326,014t, the highest on record and 15pc above 2022. China became Australia’s largest lamb export destination in volume terms, at 66,875t. Mutton exports totalled a record 209,580t, a 44pc year-on-year increase with China accelerating as the number one market at 97,481t.

Goatmeat exports totalled 33,904t in 2023, up 55pc on the year prior. The United States remains the largest destination for goatmeat, accounting for 42pc of exports or 14,477t in 2023.

Domestic consumption

Australia’s per capita beef and sheepmeat consumption continues to be one of the largest in the world. About 92pc of Australian households purchased beef and 72pc bought lamb in the past year.

Australia remains one of the world’s largest consumers of beef, ranked third behind Argentina and the United States, with per capita consumption in 2023 averaging 23.4kg.

Australia was the largest sheepmeat consumer on a per capita basis in 2023 at an average of 7.4kg. Helping to boost lamb consumption over the past year is the falling lamb retail price, which fell below beef in mid-2023.

“Australians love their beef and lamb, and this report emphasises the fact that we are some of the biggest per capita consumers of red meat globally,” Mr Crowley said.

“With 2024 set to break production and slaughter records highlighted in this 2023 analysis, there will be plenty more beef and lamb on the shelves for consumers to enjoy as we approach summer.”

 

To view the full State of the Industry Report, visit: State of Industry Report 2024