December 2023 – 119th Edition
Key Developments in Southeast Asia’s Beef Trade
As 2023 draws to a close, Southeast Asia’s beef and cattle trade is undergoing significant changes, setting the stage for the next 5-10 years. The region’s economic landscape, particularly in manufacturing and tourism-dependent nations, has been reshaped by global economic shifts, leading to a noticeable cost-of-living crisis.
However, signs of recovery are emerging, although it may be a gradual process.
A notable trend in the region is the increasing acceptance and preference for frozen beef over traditional fresh meat. This shift presents both challenges and opportunities for the live export industry and the boxed beef trade. The live export sector must now navigate beyond price and availability concerns, focusing on investment in downstream capabilities like abattoirs.
Country-Specific Insights
- Indonesia: The upcoming elections in February and Ramadan in March are pivotal events. The beef sector in East Java has achieved self-sufficiency in meat production, largely due to successful artificial insemination programs.
However, Indonesia continues to rely heavily on imports to meet its beef demands. The country is preparing for Ramadan, with expectations of increased beef consumption. Concerns about Foot-and-Mouth Disease (FMD) and Lumpy Skin Disease (LSD) persist among local farmers. A recent Indonesian delegation to Australia expressed satisfaction with the LSD testing processes observed, marking progress in trade relations.
- Vietnam: The Tet festival in February is a high-volume period for beef consumption. The recent increase in Australian cattle imports should be viewed cautiously, as it may not indicate a permanent shift in market demands. Vietnam’s competitiveness in pricing continues, with Australian cattle offering a cost advantage.
The first graduates of a skilled meat worker training program in Vietnam, a joint venture between Katherine Pastoral Company and Mr T Beef, have secured employment in Australia, highlighting successful cultural and economic exchanges.
- Philippines: The beef market remains stable, with consistent prices in wet markets and supermarkets. Local cattle prices in Mindanao continue to be steady.
- Thailand: There has been a slight decrease in live cattle prices, with high feed costs continuing to challenge the local industry.
Australian Market Update
The northern export feeder steer price in Australia has shown an uptick, aligning with a general rise in cattle pricing across the country. This change is attributed to recent rainfall events and the onset of the wet season in northern cattle-producing areas, which has limited cattle supply on the market.
The Southeast Asian beef market is at a crossroads, with evolving consumer preferences and economic challenges shaping the future of the trade. While recovery from the cost-of-living crisis is underway, the region’s beef industry must adapt to changing dynamics, including the growing preference for frozen beef and the need for enhanced supply chain capabilities.
Australian exporters, in particular, face the challenge of balancing price competitiveness with the need for consistent quality to maintain their position in these evolving markets.
