BSBMKG512: Business Report on Live Export of Cattle in Australia

This report analyzes the live export of cattle in Australia, a significant player in the global beef market. It highlights Australia's position as a major exporter, particularly to Indonesia, Vietnam, and China, while also addressing challenges like droughts and regulatory hurdles. The report delves into market intelligence, networking opportunities, and key statistics, including trade volumes and values. It examines the economics of the industry, distribution channels, and key success factors. Furthermore, it explores trends, legal and ethical constraints, and environmental issues impacting the industry, including the impact of droughts and trade barriers. A SWOT analysis provides insights into the industry's strengths, weaknesses, opportunities, and threats. The report also identifies new target markets and recommends forecasting techniques for future planning. Desklib provides access to this and other solved assignments for students.

Running head: INTERNATIONAL BUSINESS
Business report on the live export of cattle industry in Australia
Name of the student
Name of the university
Author Note:

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Table of Contents
Introduction......................................................................................................................................4
Section 1..........................................................................................................................................4
Target Market..................................................................................................................................4
Sources of Market Intelligence........................................................................................................4
Networking Opportunities...............................................................................................................5
Statistics...........................................................................................................................................5
Main Trade Fairs on Cattle..............................................................................................................6
Collaboration and Analysis of current markets...............................................................................6
Market Growth Rate........................................................................................................................6
Figure 1-: Graph showing uneven distribution of Rainfall in Australia..........................................7
Market Profitability.........................................................................................................................7
New Regulatory Requirements........................................................................................................7
Economics of the Australian Live Export Industry.........................................................................7
Distribution Channels......................................................................................................................8
Figure 2-: Distribution Channels of Beef and Cattle in Australia...................................................8
Key Success Factors........................................................................................................................9
Section 2..........................................................................................................................................9
Trends and Developments and their Impacts...................................................................................9

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Legal, Ethical and Environmental Constraints................................................................................9
Figure 2: World and Australian Livestock Exports.......................................................................10
Australian Beef Production............................................................................................................10
New Target Market........................................................................................................................11
SWOT Analysis.............................................................................................................................11
Other Environmental Issues...........................................................................................................12
Trade Barriers................................................................................................................................13
Legal, Ethical and environmental constraints................................................................................13
Trademarks, Patents and Standards Accreditation........................................................................13
Cooperative Ventures....................................................................................................................14
Strategic Alliances.........................................................................................................................14
Recommendation of 3 forecasting Techniques..............................................................................14
Conclusion.....................................................................................................................................15
Appendix........................................................................................................................................16
References......................................................................................................................................18

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Introduction
The following report is based on the live export of cattle in Australia. Australia was the
largest exporter of beef in the year 2015. However a severe draught in the country ion the
following year drastically reduced its beef production and naturally resulted in the fall of exports.
The production of beef in the island continent is now divided into two different seasons where
the first period experiences a massive expansion of the stocks of animals whereas the other
period experiences just the opposite picture.
Section 1
Target Market
The Australian cattle production is one of the largest in the world and the country exports
beef and cattle to a number of different countries of the world. Indonesia is the largest importer
of Australian cattle which accounts to more than 50% of the total export. Vietnam and China are
the other largest importers with Vietnam’s share lying to more than 20% and China approximate
5%. Other country that imports cattle from Australia includes Malaysia, Israel, Philippines,
Russia and many other Asian countries (Ryan, 2017).
Sources of Market Intelligence
The beef market of the world is an extensive one as beef is consumed by almost all the
countries in the world. Australia was the leading beef exporter in the world in the year 2015 but
as mentioned earlier the severe draught in the successive year led to a sharp decline in the
amount of exports (Wiedemann et al. 2015). The fall in the production in Australia was taken as

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an advantage by other countries and Brazil and India overtook the island continent in the year
2016 to be the first and the second largest producers and exporters of beef across the world. A
recent survey in Australia has shown that domestic consumption accounts for only one third of
the beef production and the rest two thirds accounts for exports. The USA is the largest buyer of
the high quality Australian beef in the year 2015 (Kahn & Cottle, 2014). Apart from this
Indonesia forms the largest part of exports in Asia and new countries like Japan, Korea and
China have also emerged into the scene.
Networking Opportunities
Networking opportunities for the production of cattle and beef is organized by the cattle
and beef exporter groups. Some of the networking opportunities include;
 Different Industry awareness events that includes the likes of the field days, paddock
walks or an annual stage conference
 Training and mentoring programs for proper networking
 Online portal development for cattle
 Regulatory commission for keeping a strict vigil on the industry
Statistics
As mentioned earlier the mentioned country was the largest exporter of cattle and beef in
the year 2015-16 but drastic change in the environmental conditions made it tough for them to
hold their positions. In the year 2014 the country exported around 1,294,036 cattle head along
with beef and earned a sum total of more than a$1290 billion. Indonesia was the largest importer

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of Australian cattle followed by Vietnam, Japan, South Korea and China. The cattle and beef are
generally exported from Darwin port and Townsville ports (Kahn & Cottle, 2014).
Main Trade Fairs on Cattle
Some of the main cattle trade fairs and cattle display fairs are namely;
1. China cattle conference held on a yearly basis.
2. ABARES Outlook 2017 conference
Collaboration and Analysis of current markets
Market Growth Rate
Thought the domestic as well as the international market for beef and cattle production
and export has been increasing gradually because of the rise in the population, the production of
Australia has fallen drastically (Ryan, 2017). This has happened due to the severe draught that
occurred just after the 2015-16 session.. The result of the draught was severe due to the
uncertainty of the rainfall and many other different factors. The uneven distribution of rainfall
has been shown below.

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Figure 1-: Graph showing uneven distribution of Rainfall in Australia.
Source- (Higgins et al. 2015)
Market Profitability
As mentioned earlier the slaughtering as well as the companies involved in exporting
beef and cattle to other countries of the world earn huge amount of revenue from such
transactions. The rise in the demand for beef and cattle has acted as a catalyst for the profitability
of the organizations (Higgins et al. 2015).
New Regulatory Requirements
There is a constant debate that goes on over the humanity of the Australian live exports
and the adequacy of the industry’s regulations by the organization. The decision of the
Australian Government to totally stop the live export of the cattle to Indonesia emphasized the
concern for the island continent. According to, Wiedemann et al., (2015) the Government was
confused over the fact on whether to totally ban the live exports industry or to step up the vigil

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on the animal welfare standards. The federal government of Australia introduced two bills in the
parliament in order to limit or totally ban the aforesaid industry. This act was later made into
legislation in the view of imposing stricter rules and regulations in the industry.
Economics of the Australian Live Export Industry
Australia has the largest amount of live exports in the world. In the year 2003 it
accounted for about ten percent of the total exports in the global market. The island continent is
the largest supplier of sheep and sheep meat to the Middle East as accounting to almost 95% of
the imports of the Middle East countries. The large size and the enormous trade involved in the
export of the particular industry clearly indicate the employment to a large number of different
people. Reports suggest that more than 13,000 jobs are concentrated just only in the Northern
Territory of Australia. This figure suggests that the industry employs a large number of
populations either directly or indirectly.
Distribution Channels
The distribution channels of the Australian Cattle and Beef has been shown in the table
below;

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Figure 2-: Distribution Channels of Beef and Cattle in Australia
Source-(Wiedemann et al. 2015)
Key Success Factors
The quality of the livestock along with the slaughtering cattle is much high compared to
that of the other countries (Perren, 2017). The enormous size of 28 million herds is more than
enough to make the country the undisputed leaders in the world of cattle and beef. Quality is the
largest determinant ion case of the huge popularity of Australian cattle.

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Section 2
Trends and Developments and their Impacts
The livestock supply in the world is expected to rise with the rise in the population.
Indonesia is believed to be withholding the largest importers for livestock (Higgins et al. 2016).
Australia will remain the largest country that will be regaining its position as the largest
distributor of cattle and beef. The large scale decline in the supply of meat has made it difficult
for Indonesia to maintain its imports but it will not affect the country from staying robust in the
beef and cattle imports.
Legal, Ethical and Environmental Constraints
Trade barriers like different taxes of the host countries and other different regulations
may lead to the fall in the export size of the Australian meat and livestock. The dishonest
approaches by many exporters or the importers can also lead to decline in the industry
(Wiedemann et al. 2015). On the other hand environmental constraints involve the situations like
draughts which has disturbed the production of the industry. Some of the key facts about the beef
and cattle industry of Australia are as follows;
1. Herd Size of cattle in Australia- 28 million head
2. The percentage of cattle exported to other countries- 60%
3. Beef Exports accounts to around $5 billion
4. Live Exports of around $600 million
5. Producers 40,000

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Figure 2: World and Australian Livestock Exports
Source: (Wiedemann et al. 2015)
Australian Beef Production
The availability of a large area of green and abundant pastures across the length and
breadth of the island continent makes it possible for the business persons to produce beef in the
green pastures only. However most of the beef and veal produced from the cattle are done
mainly to satisfy the needs of other Asian countries where beef is in huge demand, especially the
countries like Indonesia, Malaysia and other similar countries. The main competitive advantage
of Australia is the availability of a vast area of green pastures that ensures the production of more
amount of meat in the country (Perren, 2017).

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New Target Market
Apart from the traditional markets of Asia the Australian meat and cattle exporters must
also consider other new markets that have the potential to outclass the old markets. This includes
the likes of the Middle East Countries and North African market. These markets have a huge
demand for sheep and cattle. In the Middle East, Saudi Arabia stands out to be a strong market as
the industry present there is not keen to reopen themselves as they were closed due to some
regulatory concerns in the system. A number of reports that were formulated shown that the
Saudi Arabian market has a huge potential to be one of the topmost destinations of cattle exports
by Australia. The Saudi Arabians import around 8 million live stocks among sheep, goats and
camels (Ryan, 2017). But North Africa provides a much greater opportunity as the meat
consumed in these parts of Africa has lacked quality and has been the reasons for a number of
different diseases in the country.
SWOT Analysis
The SWOT Analysis of the Australian Cattle and beef industry will provide the readers
with a clear insight into the current and future trends of the following industry. The main focus
will be on the strength and weaknesses of the industry in the present situation. The strengths and
weaknesses of the industry are as follows;
STRENGTHS WEAKNESSESSS

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 Clean and Greener product
 Availability of lush green pastures
across the country
 Major exporter of the world
 Volatile competitive markets around
the world
 Concentration of the processing
capacity
 Variation in the climate
OPPORTUNITIES THREATS
 Managing the risk involved in the
production
 Increased demand from Asian as well
as contemporary markets
 Scientific methods of production
 Increase in the growth of the other
countries with more scientific
production
 Risk of cattle diseases
 Abrupt changes in the climate
 Self sustainability of potential
importers
Other Environmental Issues
The environmental issues are one of the major concerns that need to be addressed by the
firms producing the cattle and the beef. The draught situation in Australia during the recent times
led to the increase in the number of cattle that were not fit for any use. Culls amounted to around
9.9 million in the year 2014 which was a serious issue and led to the decrease in the number of
exports by Australia (Moore et al. 2015).

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Trade Barriers
The broader protection barriers include the likes of the rise in the quotas, increase in the
tariffs and taxes to protect the domestic market (Wiedemann et al. 2015). This also include
different food and safety legislation and standards as well as national standards and safety
procedures elaborated in the national bodies that may have a huge impact on the livestock export
market of the globe.
Legal, Ethical and environmental constraints
The Australian cattle and Beef Exporters must comply with all the different rules and
regulations of the country as well as the country of export to ensure a smooth business. They
must also implement the best possible methods to negotiate with the business of different
traditions and different cultures (Moore et al. 2015). Cultural differences must be well addressed
so that the business does not face any complexity in the long run.
Analysis of International Market
Trademarks, Patents and Standards Accreditation
Trademarks and patents are one of the main security measures that must be taken by the
organizations while exporting beef to foreign countries. The trade marking of the business and
obtaining the patent of the business helps it to be secured from other business houses carrying
out the same business. Trade marking in business ventures helps in the formation of a brand that
helps to establish the brand in a much organized way.

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Cooperative Ventures
The cooperative business ventures help the organization to provide the people with beef
and cattle at very low prices ensuring the highest quality of the items. According to, (Wiedemann
et al. 2015) these ventures help both the business to fluctuate as well as help quality meat to be
available at a low price.
Strategic Alliances
Strategic alliance with a foreign firm in the host country will help to gain a strategic foot
hold in the market of the host country. Strategic Alliance is followed by most of the retailers and
the exporters in overseas countries to flourish their trade. According to, (Kahn & Cottle, 2014)
strategic alliance has to be completed by the companies in accordance with the different form of
rules and regulations of the host country.
Section 3
Recommendation of 3 forecasting Techniques
 The industry must plan a new way to get out of the crisis and can possibly breed new
animals or think of importing some other slaughtering breeds from other countries
 The industry should focus on China as the new destination as the demand for meat has
been rising gradually in the country
 A robust and experienced beef producing and slaughtering agreement must be in place to
avoid any future shortages
 Proper breeding techniques
 Scientific and well maintained techniques of keeping the cattle healthy

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Conclusion
The export market for the Australian beef industry has always been very lucrative in
nature and thus it has been the very best in the industry. The recent fall in production due to an
ongoing draught has been quite problematic for the industry and thus the government needs to
implement a number of strategies to counter the threats posed by outside sources. The industry
should now focus on some emerging new markets to double their profits. The main focus country
of the industry can be China as it has increased its imports from Australia since some year due to
the rise in the demand of beef and livestock. However Australia must maintain its production
capacity and standards to meet the demands of the industry.

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Appendix
Appendix 1
Figure 3: Australian Beef Export Values
Source: (Wiedemann et al. 2015)

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Appendix 2
Figure 4: Australian Livestock Export
Source: (Moore et al. 2015)

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References
Higgins, A. J., McFallan, S., Laredo, L. A., & Prestwidge, D. (2016). Cost of transport
infrastructure and regulatory constraints in Australian cattle supply chains. Final Report
to MLA.
Higgins, A., McFallan, S., Laredo, L., Prestwidge, D., & Stone, P. (2015). TRANSIT–A model
for simulating infrastructure and policy interventions in agriculture logistics: application
to the northern Australia beef industry. Computers and Electronics in Agriculture, 114,
32-42.
Kahn, L., & Cottle, D. (Eds.). (2014). Beef cattle production and trade. Csiro Publishing.
Moore, S. J., Madin, B., Norman, G., & Perkins, N. R. (2015). Risk factors for mortality in cattle
during live export from Australia by sea. Australian veterinary journal, 93(10), 339-348.
Perren, R. (2017). Taste, trade and technology: the development of the international meat
industry since 1840. Routledge.
Rees, C., & Mullumby, J. (2017). Trends in Australian meat consumption. Agricultural
Commodities, 7(3), 82.
Ryan, E. (2017). A Tale of Three Cities: A Comparative Analysis of Newspaper Coverage of the
2011 Live Cattle Export Suspension. GEOView: Online Undergraduate Review of
Geography and Environmental Studies.
Wiedemann, S. G., Yan, M. J., & Murphy, C. M. (2016). Resource use and environmental
impacts from Australian export lamb production: a life cycle assessment. Animal
Production Science, 56(7), 1070-1080.

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Wiedemann, S., McGahan, E., Murphy, C., Yan, M. J., Henry, B., Thoma, G., & Ledgard, S.
(2015). Environmental impacts and resource use of Australian beef and lamb exported to
the USA determined using life cycle assessment. Journal of Cleaner Production, 94, 67-
75.