MLA will soon release its new five-year Strategic Plan to 2030, developed through 12 months of consultation with stakeholders from across the industry. Drafting the international markets component required making some difficult assumptions about market development, consumer trends and the international trading environment.
Improving and maintaining preferential market access for the Australian red meat sector has been a decades-long collaboration between the Australian Government and industry, involving MLA staff both in Australia and overseas. Despite periods of volatility, this mission has been successful due to a significant lowering of trade barriers. However, as we enter the next five-year cycle, an uncertain global trade environment exists, with any conflicts likely to disrupt supply chain stability.
For MLA and others working to enhance economic and technical market access for Australian red meat, this means intensifying efforts to engage, inform, educate and reinforce strong relationships, enabling us to proactively address trade challenges and develop unified response plans to manage market access threats and opportunities.
Meanwhile, strong economic growth is expected to continue across South-East Asia and beyond, driving the expansion of a middle class with higher disposable incomes. This demographic shift will increase red meat consumption, creating opportunities for those who can align their products with local cultural preferences. In contrast, established markets such as Japan, Korea and the US will experience more limited economic and population growth, but still present opportunities to expand sales and market share among specific segments.
Health and wellness trends are set to grow (pushed along by ageing populations in developed nations) and will present increased opportunities to highlight the role of natural animal protein in a healthy lifestyle. Technological advances will also continue to transform consumers' lives and the global food industry, enhancing product innovation, communication, insights and marketing operations.
The global meat sector will remain under coordinated pressure from activists advocating for legislative restrictions on ethical grounds. However, the significant majority of international consumers will continue to demand fresh meat from sources they trust, providing opportunities for sophisticated and well organised production chains like ours. Increased sophistication of production systems in Australia will support the development of brand/value propositions tailored to diverse market specifications.
Australia's red meat supply is forecast to remain consistent or slightly above the five-year average, with ongoing improvements in product quality. However, competitors will also continue to invest in boosting productivity, quality, consistency and production standards to strengthen their global position.
To support industry growth over the next five years and beyond, we must work to entrench 'Aussie' in the culture of emerging markets, in line with long-term efforts that have secured our strong brand presence in markets such as Japan and Korea. This will require increased investment into high-growth markets such as Indonesia, Vietnam, Thailand, China, the Middle East and, when viable, high-potential markets across India and North Africa.
Marketing investments must focus on culturally resonant activities that build purchasing and eating occasions, while also educating and inspiring customers and consumers alike. In time, industry should aim to achieve a high level of brand affinity in emerging markets as seen in mature ones, where multiple generations of mainstream consumers know and love our products.
At the same time, we must focus on growing market share in high-value supply chains, which include untapped category and brand growth opportunities in North America, Japan, Korea, Europe and the United Kingdom. This will involve working alongside partners to create tailored programs with global and large regional customers, reinforcing the "Why Australia" message, and using data and insights to position 'Aussie' alongside global trends such as health and wellness, ethical leadership, premiumisation and fragmentation, technology and product innovation.
Despite the volatility we currently see in the geopolitical, economic and trade landscape, MLA's marketing investments in both established and emerging international markets can build on past successes and help secure a sustainable and prosperous future for our industry.
