Australia

[greybeard]

If we are going after more world markets, I think Australia is a better model to use than the USA. They seem to be much more aware of "producing for the market" rather than our way of "produce it and let someone else sell it".
Check out this link. http://www.angusaustralia.com.au/AiA_Market_Opt_full.htm

[smcgrath76]

For the most part I COULD NOT AGREE MORE!!!

Australia has a tremendous beef industry with a major focus on export markets/customer demands. I had the opportunity to visit AUS a couple of years ago and was very impressed.
We should not kid ourselves that we are the only potential suppliers of grain fed high quality beef.
AUS has invested huge $ in R&D (trade green) and has many large players. The most interesting thing was that you rarely met a producer who sold calves. They sold Japanese Steers, or Korean Heifers, or Indonesian feeders. They produced and sold to a market.
As well, AUS has a national genetics organization, and a significant government commitment to working on trade relations. They are also on the doorstep to the region of the world with the largest population and the fastest growing economy.
I beleive that we should look at this system objectively and emulate certain properties of it. I think it could be done here with less Gov't $ for more results.

[farmers_son]

I also could not agree more. I have looked to Australia as the example to follow for many years.

I would point out that Australia looks with considerable envy on our access to the world's largest beef import market, the United States. Australia has signed a free trade agreement with the U.S. that should see Australia have free access to the U.S. market in 17 years.

Like smcgrath76 mentions, Australia can produce grain feed beef just like ours. Australia is an important producer of barley and those Murray Grey calves will produce a steak indistinguishable from our product. However I would question whether Australia could produce an identical product to our North American product and be competitive in North America. On the flip side of the coin I would question whether we can out compete Australia on their aged on the hoof grass fed product. Each country will need to focus on its strengths.

NAFTA limits our ability to trade globally to the same extent as Australia does. Our access to the U.S. market comes with a price and that price is our market is filled with U.S. imports restricting our ability to trade with Europe, Asia and the world like Australia does. Therefore we can look to Australia for inspiration but cannot emulate them.

[gwf]

Farmer_son: I am not questioning the statement in you last post. "Our access to the U.S. market comes with a price and that price is our market is filled with U.S. imports restricting our ability to trade with Europe, Asia and the world like Australia does. Therefore we can look to Australia for inspiration but cannot emulate them."
Would you be able to expand on this a little more. I did not realize that we were married to the US to the degree that we are perhaps not able to trade with other countries.

[farmers_son]

According to http://www.cia.gov/cia/publications/factbook/geos/as.html Canada exports goods to US 86.6%, Japan 2.1%, UK 1.4% (2003) and imports goods from : US 60.6%, China 5.6%, Japan 4.1% (2003).

Australia trade is not centered around the U.S. Its export partners are Japan 18.1%, US 8.7%, China 8.4%, South Korea 7.4%, New Zealand 7.4%, UK 6.7% (2003) while its import partners are US 16%, Japan 12.5%, China 11%, Germany 6.1%, UK 4.2% (2003)

The trade relationship between Canada and the United States is unique. In 2003, two-way trade in goods and services surpassed $441.5 billion, making the U.S.–Canada trading relationship the largest in the world.
In 2003, the U.S. sold $195.8 billion worth of goods and services to Canada and received $245.8 billion worth of goods and services from Canada. Even without trade in live cattle.
Since 1989, when the U.S. and Canada implemented the Canada–U.S. Free Trade Agreement, trade between the two countries has accelerated, more than doubling from $192.4 billion to $441.5 billion in 2003.

NAFTA means we trade with the U.S. Not necessarily a bad thing but there is only so much trade to go around. If we are buying most of our goods and services from the United States then we are not buying those goods and services from other countries. Australia is going to find it a lot easier selling beef to Japan, China, German, the United Kingdom not to mention the United States because Australia is buying goods from those countries. Smcgrath76, when you were in Australia, did you notice what country most of the cars and trucks were made in? I bet there were a lot more Toyotas, KIAs, European made vehicles on the road in Australia than we would see in Canada which is mostly American made cars and trucks. Selling beef is more than marketing and product development, you have to buy products from the countries you are wanting to sell beef to. It is not enough for Canadian producers to produce beef specifically for Japan, they have to buy a Toyota 4X4 to pull their stock trailer with.

I do not want to take attention away from things we can do to improve trade opportunities for Canadian beef. Australia provides an excellent example. However we cannot expect miracles and as long as we are tied into this special trading relationship with the United States we are going to be limited in how successful we will be in making inroads into other markets.

Product development, creating a specific market focus for each target nation are things the Australians do very well. But the number one thing that a nation has to do successfully if it wants to export beef is have a healthy beef herd or you cannot even get your foot in the door. And we are kind of blowing that one.

[kpb]

Could either of you guys tell me if Australia has a grain-fed finishing business? My understanding from talking to my sister is that they do not generally finish on grain, that they have hardly any feedlots and that most of their beef is grass-finished. She lives there but is not a farmer so may be mistaken.

[PureCountry]

Trust me, kbp, Australia has a very impressive feeder industry. My folks were down there in '97, when my mom was president of the Canadian Angus Assoc.

They were toured through several feedlots, and brought back many pictures. Pictures that showed Net Feed Efficiency being tested on steers wearing radio collars, so that as each animal entered a stanchion-type bunk, the platform it stood on was weighing it, and the amount of feed it consumed was recorded. It was pretty high-tech, cutting edge stuff, and they saw it in more than one feedlot.

I don't think we can ever rule out any nation as a competitor, if they have grass and space. The genetics, technology, and money can easily be obtained on a global market.

[pmckenna]

Australia's grain finished industry grew significantly in the mid 1980's and continues to grow at 7% per year. Not sure about total percentages, but it is increasing toward signifigance.

[Cattleman]

Also given the droughts they have had, that has also led to more grain fed cattle as well. I was over there two years ago working on some stations, not too big of ones (only a million acres!) and they said a lot more animals were moving to feedlots. Partly because of drought but also for marketing reasons

[farmers_son]

Check out: http://www.ausmeat.com.au/#

AUS-MEAT Limited, incorporating AUS-MEAT Standards and AUS-MEAT Commercial Services, is responsible for establishing and maintaining National Industry Standards for Meat Production and Processing.

AUS-MEAT Limited offers a large range of services throughout Australia including Management, Auditing, Training and Consultancy to all sectors of the Meat and Livestock Industries.

AUS-MEAT is not just beef but veal, lamb, pork, goat.

Would North American or Canadian producers and processors give up their independence to establish national accredited standards like we see being done in Australia? Given the debate on the right to test for BSE if an individual company saw an advantage for themselves without regard for the consequences for the overall industry I think we have a long way to go in creating an industry mind set to selling beef internationally.

It will take a paradigm shift in thinking to match Australia.

[cowman]

Hmmm...I wonder if they feed their kangaroos grain? Remember the Jack-in-the box deal? Hope they've cleaned up their act since then?

[farmers_son]

Did a little checking and found that "about three million kangaroos a year turn into steaks or stews on European tables - a significant part of Australia's 10 million kangaroo harvest. Australian exports of kangaroo meat so far in 2001 have jumped by 30 per cent."

Prior to March 2001 they fed their kangaroos to cattle. In addition to kangaroo it was permissisable to feed pig, horse, poultry and fish material to ruminants in Australia. Yummy.

And we thought they were grass fed!

See:http://www.meatnews.com/index.cfm?fuseaction=article&artNum=1813

[farmers_son]

Found this on Animalnet this morning and thought it would be of interest.

Australian outback cattle abandoned, 500 die of thirst
February 18, 2005
Reuters
Michael Perry
SYDNEY - Australian authorities, according to this story, took over a sprawling outback cattle property on Friday after its aboriginal owners abandoned it, leaving 500 cattle to die of thirst and a further 2,500 struggling to survive without water in searing heat in a drought-stricken land.
Animal welfare officials were cited as saying the cattle on Windidda Station in Western Australia state were living in hellish conditions in reported temperatures of about 50 degrees Celsius (122 degrees Fahrenheit) and with only two of 13 water pumps working.

[greybeard]

What seems clear to me is that the Aussies have a much more developed marketing program and a good range of products that they have spent time developing.
Do Cargill and IBP have the ability to go back to Asia and regain market share from them? I expect Cargill can just designate different shipping points as they have product available down under too. They probably continued to ship to their customers right through all this. They will only replace that product with North American product if it is more profitable for them. They will not be “dedicated sellers” of our beef. It’s all just commodities to them.
I think Australia proves you can survive without having a supply balanced to the domestic market. But we can’t just go there and say” We sure like our beef and I’m sure you will to”. It's always hard to displace a supplier the customer is happy with unless they can't supply (BSE in N America). Or you have to be a lot cheaper. Why whould we be cheaper when we can just roll it on down to OT and his buddys.

[smcgrath76]

Cowman, had a chance to eat kangaroo over there too (knowingly). It's pretty lean, but not too bad when cooked properly. Puts a little jump in your step.