Red meat industry posts $7.7 billion lift in annual turnover: Meat and Livestock Australia

Australia’s red meat industry has posted a whopping $7.7 billion lift in annual turnover after a 4 per cent drop the previous financial year, as domestic consumption and exports surge.

Meat and Livestock Australia’s 2023 State of the Industry report, released on October 18, included new figures that showed the sector posted a $75.4b turnover nationwide in 2021-22.

New South Wales accounted for 28 per cent of total turnover, followed by Victoria (24 per cent), Queensland (21 per cent), WA (13.7 per cent), South Australia (8.5 per cent), Tasmania (3 per cent) and the Northern Territory (one per cent).

It comes after a $67.7b turnover in 2020-21, down from $69.9b in 2019-20.

MLA managing director Jason Strong acknowledged conditions had changed significantly since 2022 but said the report demonstrated the industry’s resilience.

“With a larger cattle herd and sheep flock, turn off has increased and increased the volume of livestock processed this spring,” he said.

“More product availability has driven significant demand for red meat at the shops.”

Australia was the world’s biggest sheepmeat and goatmeat exporter in 2022, and the fourth largest beef and bovine meat exporter after Brazil, India and the United States.

Australian lamb exports totalled 284,257 tonnes — the highest volume on record and 7 per cent above 2021 figures — while mutton exports totalled 144,005t.

The US and China remained the biggest markets for Australian lamb and mutton respectively.

Goatmeat exports totalled 21,831t, up 15 per cent on 2021 volumes, with the US remaining the largest market.

Beef exports totalled 855,000t, down 4 per cent year-on-year, with Japan still Australia’s largest export market.

More than 600,000 live cattle were exported from Australia last year — down 22 per cent from 2021 — of which 56 per cent went to Indonesia.

Live sheep exports were just shy of 503,000 head, down 13 per cent on the previous year, with Kuwait accounting for 58 per cent, followed by Israel (14 per cent).

In total, the value of Australian red meat and livestock exports rose 17 per cent year-on-year to $17.6b in 2021-22.

Mr Strong said this represented about 3.3 per cent of Australia’s key industry exports.

“Australian livestock production is among the most efficient systems in the world, which leaves the industry well positioned to respond to challenges such as volatile weather conditions for the next several years,” he said.

Federal Agriculture Minister Murray Watt said the report showed consumers worldwide still placed a “very high value” on Australian red meat.

“The efforts of government and industry to open new markets overseas have been rewarded and will remain important as producers face the challenge of drought and volatile livestock prices,” he said.

“The report also highlights that the sector is a vital economic activity . . . employing over 433,000 people (in 2021-22).”

Australia’s per capita beef and sheepmeat consumption continued to be among the world’s highest at 23.7kg and 6.8kg respectively.

“Throughout 2023 we have seen both saleyard and retail prices fall as supply increases; this is leading to a production boom as we approach the end of this year,” Mr Strong said.

“The sales performance of Australian lamb and beef in the domestic market is very strong, with both proteins growing in sales volume and overall value.”