A world of opportunity for premium Australian beef Richard Norton, Managing Director Meat & Livestock Australia
Demand for premium quality Exceptional quality or greater value than others of its kind; superior
Demand for Wagyu in-market signals
Data Insights In-market evidence Expertise Experience Statistics Forecasts So What? Research Implications for Australia based on: Our strengths (key attributes) Our limitations + Market environment (inc. competitors) Consumer expectations and trends + Objectives/Strategies
Grainfed beef Wagyu US domestic products Australian Wagyu Foodservice & Retail EU & Russia Drivers - consumers familiar with highly-marbled beef North America Steaks, hamburgers, Asian-style cooking MENA Australian product well-positioned Asia Africa Future Opportunities at higher-end retail and food service (somewhat untapped at this point) VERY Niche offerings in the future grassfed wagyu perhaps?
Sheepmeat Beef Grass/Grain Wagyu High end outlets Retail Foodservice Drivers westernisation, ultraaffluent consumer segment Brakes niche market, Middle East knowledge still limited Emergence of Premium casual appealing to younger audience Future greater demand anticipated with market sophistication continues Surging popularity may attract substitution/false labelling
Grassfed beef Grainfed beef (from US, Aus) Wagyu Foodservice and Retail Drivers affluent consumers, appreciation for global cuisine EU The highest average value market for Australia Brakes Market access (grainfed quota shared with US and others), EUCAS eligible products Future more opportunity with market access improvement
Pork Beef Grass/Grain Wagyu Foodservice and Retail Drivers Strongly positive perception. Consumers think the best beef is Wagyu Foodservice, retail, online also emerging CHINA Australia competes with grey channel products, highly marbled local products Brakes inconsistent supply. Substitution also becoming an issue Future demand strong from rising middle/high income consumer segments
Hanwoo (production declining) Australian grainfed Wagyu Retail and Foodservice Drivers appreciation for marbling, falling domestic herd + increasing prices Strong presence in retail Foodservice wide range (from high end to KOREA Wagyu gyudon, TGI Friday) F1 prominent, products priced on MB score Brakes supply, US products emerging, Australian price increase Future strong interest and demand likely to continue
Pork (except Indonesia) Beef Grass/Grain Wagyu Foodservice and Retail Drivers Positive perception. Rising middle class consumers Singapore market more developed, both FS/RTL Indo and Ph largely FS, both Japanese style and western (steaks). Small volume, but interest & South East Asia reputation growing Online also emerging in Singapore and Thailand Future very bright as long as there is consistent availability and supply. No health concerns
Japanese Wagyu Imported beef Grass/Grain (inc. Australian Wagyu) Drivers Unique position (marbling better than US products, but not as much as Japanese) Demanded product for mid/high yakiniku, BBQ and JAPAN steak restaurants (approx. 60%) Distributed under trade brand/specification Brakes Economy still fragile, competition with other high quality food products Future high marbled tender beef will always be demanded by 120+ million consumers
Beef Grass/Grain Brands Wagyu Wagyu brands (high end) QSRs Mid-range restaurants Drivers Foodservice: reputation from high end penetrating through Mid range eateries seeking variety, taste, but not too heavy/rich QSRs seeking point of difference Future demand from all levels of FS (inc. Asian) Australia Brakes high price, fear of failure limiting exposure @ retail, high marbling Butchers can tell stories
Source: USDA, BMI. In cwt. *Egypt, Iran, Israel, Jordan, Kuwait, Lebanon, Libya, Oman,Saudi Arabia, UAE Demand for BEEF beef consumption total Russia 2 million EU US 7.7 million Japan 11.3 million China 1.2 million Mexico 1.8 million Middle East* 7.8 million South Korea 1.7 million 0.7 million Brazil ASEAN 6 7.8 million 2.2 million Argentina 2.6 million South Africa 0.8 million Australia 0.7 million
Distribution of households earning US$35000+ EU & Russia 131 mil North America 05.4 mil 30% Latin America 12% Middle East 6.7 mil 181% Asia 85 mil 71% 8.5 mil 22% Source: BMI 2020f = change % from 2010
Qatar Macau US Singapore Denmark Australia Hong Kong UK UAE France Japan South Korea Saudi Arabia Italy Mexico Lebanon Malaysia China Brazil Thailand Indonesia Philippines Vietnam Income growth GDP per capita in US$ (2015) and growth % (2015 to 2024) 90,000 40% 35,000 160% 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 35% 30% 25% 20% 15% 10% 5% 0% 30,000 25,000 20,000 15,000 10,000 5,000 0 140% 120% 100% 80% 60% 40% 20% 0% Source: BMI
Market Attractiveness Growth / Risk MLA Portfolio strategy The matrix is defined by Market Attractiveness and MLA s potential impact. Each quadrant has a different strategic classification Maintain Grow Manage strategically Develop MLA Impact
Wagyu Portfolio? Attractiveness (higher growth & lower risk markets) 8 7 Grow Domestic 6 MENA Impact (lower) Maintain 5 Japan Korea China Indonesia 0 1 2 3 4 5 6 7 8 9 Impact (higher) Manage Strategically Note: The size of the circle denotes the current value of the market North America 3 EU/Russia2 1 0 SEA Attractiveness (lower growth & higher risk markets) Develop
Demand for premium quality Exceptional quality or greater value than others of its kind; superior