CSIRO and the Australian Beef Market: A Marketing Systems Analysis

This report provides a comprehensive analysis of the Australian beef market, focusing on its key aspects, including production, export, and challenges faced by the industry. It offers an overview of the beef industry, highlighting Australia's position as a major exporter. The report identifies several challenges, such as climate change risks, volatile commodity positions, digital marketing impacts, and environmental concerns. It also explores the rise of locavore products and changing consumer preferences. Furthermore, the report applies marketing systems, including the STP model (segmentation, targeting, and positioning) and the 4Ps of marketing (product, place, price, and promotion), to address these challenges and propose strategies for improvement. The report provides valuable insights for the CSIRO to add value and sophistication to the Australian food market.

Running head: AUSTRALIAN BEEF MARKET
AUSTRALIAN BEEF MARKET
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Introduction:
The food market of Australia includes a number of aspects and features. While the country
focuses on the quality management aspect, it also focuses upon the marketing aspects of the
food. The government and the private organizations and food corporations of the country focus
more upon developing food which can be customized and will cater the needs of a particular
group (Hill et al. 2013). There are food market and items for the premium customers and there is
also the use of the research and development in the field of agriculture.
In the following portfolio the beef industry of the country will be considered. The country is
aggressively involved into exporting the livestock and it is observing a growing demand for the
purposes of domestic use as well. The country is exporting to 100 countries. However, the
country is also observing certain challenges and hassles while dealing the products in the
industry. The Common Wealth Scientific and Industrial Research Organization or CSIRO is
battling certain severe problem while maintaining the export business of red meat. Therefore, in
the portfolio, these challenges will be analyzed. The portfolio will provide brief overview of the
beef industry of the country and then it will move towards the analyzing the challenges perceived
in the field and will include the theories of marketing system while considering this discussion.
Overview of Beef Industry of Australia:
Australia is considered to be the third largest exporting country of beef, exporting 60% of its
total production of red meat. Beef cattle production and exportation is one of the major industries
in the country and as per the recent reports there are 25 million cattle herd in the country,
accounting for 55% of the agricultural farms of the country. Among the other agricultural
products, the beef cattle farm production is the most valued and most widespread, and the most

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important farm business of the country. One of the recent research has viewed that the country
has produced 1.8 million tons of beef and veal and had exported the same around 83 countries
around the world, with China, India, and Brazil being the prime members of the production
(Smith, Gotoh, and Greenwood. 2018). To understand about the production status of the country,
it is observed that Queensland is the major beef producer of the country with New South Wales,
Victoria, Western Australia, Southern Australia and Tasmania, taking the consecutive places.
Since it is one of the major industry therefore, the country takes special attention to the health
and safety of the cattle as well as the country takes special attention to the infrastructure
requirements as well (Kahn, and Cottle. 2014). Since the cattle are bigger in structure and shape
therefore, they take up more space and more importantly, considering the health and safety of the
animals, the infrastructure are made strategically. Among all the buildings or infrastructural
establishments, three things were common or normal, an internal fencing or boundary; watering
points and a well- designed and strategically fashioned yard.
The Challenges:
Though the Australian market is liberalized enough yet there are certain potential challenges in
the market. Being open to the international market, the opportunities in the industry, and the
productivity and the quality of the production has improved potentially. More importantly, the
marketing aspects for the Australian beef market has now included certain different and
innovative approaches, however, at the same time, the research and development team for this
particular field has improved as well. The Australian cattle industry is perceived with a
continuous growth (Bell et al. 2014). However, along with these there are certain challenges that
the industry and the CSIRO are facing. First of them is the risk associated with the changing
climatic conditions. The changes in the climate is holding potential threats for outbreaks of

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diseases in the country. The changes in the climatic conditions are more likely to develop certain
diseases which are new and had no former ground. Another major challenge in the market is the
volatile commodity position. Since there are a universal of religious and health attributes related
to the consumption of Beef, therefore, it is observed that the products own a very volatile
position in the market (Poppi et al. 2018). One of the major example is, some days back the
exporting business of beef to the Indian market had been crashed or fallen because of certain
social issues in the Indian market. This had affected the business of beef in the country. More
inmportantly while considering the domestic market of beef, it is observed that the position of
the commodity is suffering from a volatile market position.
There are considerable threat positions in the production process as well. Apart from the
potential risks of associated disease, it is observed that the digital marketing aspects is also
hampering the production process and the quality of the products. According to the professional
working in CSIRO, there is a change in the demands of the customers (Ash et al. 2017). The
customers are not only satiated by the products but they want to know about the entre process.
From researching and developing, to management of the animals, from the production processes
to the final exportation of the animals, the customers are interested in all these aspects. The
marketing aspects and processes are going through a major change and it is affecting the industry
and the production process. Another major challenge is posed by the environmentalists. Over the
years there had been a potential amount of challenges in the industry regarding the production,
process and consumption of the animal (Higgins et al. 2015). There are issues of environmental
sustainability and issues of licensing which are potentially affecting and harming the industry.
Another huge problem or challenge faced by the CSIRO is that there is an increased demand for
locavore products, according to the researchers there is a market pattern which has been recently

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been initiated. The domestic consumers are more likely to get the meat from the closest shops, or
from the closest firm. The reason for such a behavior is that there is an associated concept of
carbon consumption. The researchers have opined that there is a huge placing problem of the
products. The consumers of the country has become conscious consumers and they are more
likely to opt for food items, which have been produced nearby, this is because, the more distance
the food products are covering by coming by a truck or car to the market place, the more, the
food products are likely to get carbonated, which is harmful for the health an well- being of the
customers (Greenwood, Gardner, and Ferguson. 2018). At the same time it is observed that with
the spread of obesity a certain section of the consumers have become extremely conscious and
they are more likely to start a vegetarian diet. A good amount of the population of the country is
characterized by a vegetarian approach or behavior.
Applying Marketing Systems:
Now these aspects can be approached with certain marketing approaches or factors. Firstly, the
theory of STP or Segmentation, Target Market and Positioning can be included. The STP model
of marketing is one of the most effective models or tools for the marketers to approach the
consumers and to market the products. With the changing needs of the market, and with the
changes in the consumption patter it is observed that the target market for the product is
narrowing down. The STO model helps the marketer to craft their business positions, but with
the changes in the pattern of consumption, it is becoming difficult for the marketers to target one
particular section of the society. The segmentation process is also affected since there are certain
religious and environmental attributes and positions attached to the factors of segmentation
(Wuryandani, Ismoyowati, and Nugrahini. 2018). These aspects are affecting the industry in
segmenting the targeted customers and hence the entire positioning process is affected. More

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importunacy, along with the rise of the conscious customers, the industry and the marketers of
the beef industry is observing potential challenges to place the products.
Another important marketing system which must be mentioned here is the 4ps of marketing. The
4ps of marketing includes, Product, Place, Price, and Promotion. First, considering the Product, it
is observed that there are certain social and environmental factors attached or associated to the
aspects of beef market. According to the environmentalists marketing of beef is not sustainable
and in case of the consumers, with the rise in the vegetarian consumers, the demand of red meat
is reducing.
Next, with the rise in the conscious customers, the placing of the products is also becoming
affected. Developing cattle farms at every other place is not possible for the marketers (Wharton.
2017).
Next, the researchers of CSIRO, have opined that the changes in the demands and since the
initiation of the age of globalization it is rather difficult for the marketers to market the products.
The consumers are effectively characterized by sustainable consumption pattern which is
affecting the marketing processes (Wharton. 2017).
Lastly, the changes in the climatic conditions, and the outrageous growth of population and
therefore diversity in the country is exposing the cattle or the animals towards factors of
unknown diseases, which is effectively affecting the products and the production process.

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