Opportunities and Challenges in Australian Chicken Meat Exports

This research project investigates the Australian chicken meat industry, focusing on export opportunities and the challenges it faces. The study analyzes the reasons behind high feed costs for poultry producers, identifies opportunities and constraints within the industry, evaluates parameters influencing export ratios, and assesses how export data can enhance chicken meat production. The research explores the impact of factors such as drought, grain shortages, and international trade policies on the industry's profitability and export capabilities. The literature review examines themes including high feed costs, opportunities and constraints, and parameters influencing export ratios. The report aims to provide recommendations to the Australian Chicken Meat Federation to address these challenges and improve the industry's export performance. The study highlights the importance of addressing high feeding costs, identifying export opportunities, and understanding the parameters influencing export ratios in order to increase production.

RESEARCH PROJECT

TABLE OF CONTENTS
TOPIC..............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................3
RESEARCH METHODOLOGY....................................................................................................7
ANALYSIS AND RESULTS........................................................................................................12
RECOMMENDATIONS TO AUSTRALIAN CHICKEN MEAT FEDERATION.....................19
CONCLUSION..............................................................................................................................19
REREFENCES..............................................................................................................................21

TOPIC
Finding and analysis of opportunities in export and problems faced by the Australian
Chicken Meat Industry
INTRODUCTION
Overview about the Australian Chicken Meat Industry and its market trends.
Australia is well known for its land and agriculture. Chicken meat industry of Australia
plays a vital role in agriculture industry. In fact, chicken meat industry of Australia is well
known and most effective in the world. It is being exported to various countries like South
Africa, Korea, japan and many more. But past few years’ drought situation has impacted
agricultural production drastically (Kanakri and et. al., 2017). There has always been shortage of
grains due to this. Shortage of grains has increased overall price of feeding for Australian poultry
producers. Shortage of grains, increasing price of agriculture products is being focused upon but
the way in which this situation is impacting Australian poultry producers is not being focused
upon. Due to this high feeing cost for Australian chicken meat producers, their profitability is
also getting impacted because of which overall agriculture industry is getting impacted. It has
become important to focus upon reducing feeing cost for Australian Chicken Meat producers so
that profitability for chicken meat production can be increased and negative impact of this
condition can also be reduced.
Aim and objectives of the research
Aim:
To analyse opportunities in export and problems faced by the Australian Chicken Meat
Industry.
Objectives:
Objectives of this research project ae as follows:
 To analyse actual reason behind the high feed cost for the Australian poultry producers.
 To identify opportunities and constraints be found in the Australian Chicken Meat Industry.
 To evaluate parameters that influence export ratio in Australian chicken meat.
 To evaluate export data help in increasing the Australian chicken meat production.
 To recommend ways though which feed price for Australian meat industry can be reduced
Research Questions
Research questions focused upon in this research project are as follows:
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 What is the actual reason behind the high feed cost for the Australian poultry producers?
 In what ways can the opportunities and constraints be found in the Australian Chicken Meat
Industry?
 How can the export data help in increasing the Australian chicken meat production?
Need of the study
It is important to focus upon reasons and market trends because of which feeding cost for
Australian chicken meat industry is increasing continuously because this industry plays a vital
role in Agriculture industry and also contributes in overall economy of the country. Increasing
price of grains has increased overall feeding cost for Australian chicken meat producers due to
which not only their profitability has been impacted but their overall production has also been
impacted. Australia has always been largest producers of chicken and meat in the world. But this
high feed price is reducing its overall production (Ahiwe and et. al., 2018). As a result, its export
ration has also been influenced. Some of the lower level poultry producers have been impacted
majorly and as a result their production of chicken and meat has reduced. This study will not
only help in identifying reason behind high feeding cost and reducing export rates but will also
help in provision of suggestion though which feeding cost can be reduced and export rate can be
increased for profitability.
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LITERATURE REVIEW
Overview
Literature review is a kind of narrative review of scholar articles. It helps the researcher
in gaining knowledge about previous studies that have been conducted previously in this sector.
It further helps in developing or building a base for the research so that main research questions
of the research can be answered easily and accurately. This this literature reviews critical
analysis of existing literature or previous studies done in this sector will be reviewed.
Theme 1 Reason behind the high feed cost for the Australian poultry producers
According to the view of King, Osmond-McLeod and Duffy, (2018) High input cost is
one of the main factor which is required to be focused upon by industries as it can directly
impact or limit growth of the market. Chicken and meat production is one of the major part of
agriculture industry of Australia. This industry is directly impacted by weather conditions,
especially rainfall. Insufficient rainfall results in shortage of water because of gains production is
impacted directly which further increases overall price of grains. Not only this shortage of grains
also increases its transportation cost because of which price of final grains suppled to chicken
and meat industry producers also increases drastically. Increasing price of grains directly results
in increasing price of feeing for chicken and meat producers. King, Osmond-McLeod and Duffy,
(2018) further explains that, increasing feeding cost of chicken and meat producers impacts their
production as well. It can also be said that production of chicken and meat is supressed become
of which their profitability is also impacted directly. In order to increase production farmers are
also focusing upon adoption of new techniques and technologies but adoption of these new
technologies has further enhanced overall feeding cost. Either ways increase in feeding cost
though high price of grains or adoption of new and advance technology has impacted production
of chicken and meat.
As per the view of Wong and et. al., (2017) poultry meat export and trading helps in
producers to enhance their overall profitability. That can further help in increasing overall
production of poultry meat. But high feeding cost works as a barrier and impact production of
poultry meat because of which lower amount of chicken meat is exported or traded. Another
reason because of which feeding cost for Australian poultry meat producers is emerging diseases
pandemic in Australia. Due to this emerging disease overall quality of chicken meat has also
been impacted. As a result, it has become important for its producers to use high quality grains
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so that they can protect their poultry meat from this emerging disease and overall quality of meat
can be maintained. This reason has also impacted feeding cost for Australian poultry meat
producers.
Theme 2 Opportunities and constraints be found in the Australian Chicken Meat Industry
There are many kinds of opportunities and constraints that are impacting Australian
chicken meat industry both positively and negatively. According to the view of Mazimpaka and
et. al., (2018) there are various opportunities that can be focused upon and grabbed by the
chicken meat producers for increasing production and profit percentage as well. Australian
chicken meat industry is famous globally for the quality of its meat and because of which it is
exported globally. Focusing upon maintaining or enhancing overall quality of chicken meat and
exporting it globally is one of the main opportunities that can be focused upon by producers of
chicken meat. Exporting poultry meat Internationally outside Australia will not only helps in
increasing its profit percentage but will also help in increasing its production and supply.
Another opportunity for Australian chicken meat industry can be found because of advancement
in technology. Chicken meat producers can focus upon adopting and implementing advance
technology within their production with the help of which grains can be imported in cheap price
maintaining Australia's biosecurity reputation. This will not only help in reducing feeding price
but will also help producers of poultry meat to import high quality of grains so that overall
quality of chicken meat can be maintained. Additionally, López-Andrés and et. al., (2018)
explains that, Adoption of advance technology can help producers to import required feeding
grains and process it at their end to that its high quality is maintained and it will further help
them in reducing overall cost associated with feeding. Both the opportunities will not only help
in reduction of feeding cost and increasing exportation, but it will also help Australian chicken
meat industry producers to develop and maintain their relationship with their customers at
international level.
However, according to the report in article Farmers face soaring feed costs as grain
stocks drain away, (2020), There are many kinds of constraints that can impact Australian
chicken meat industry. One of the main constraints is competition of chicken meat with other
meat sectors for grains. It is one of the main constraints because due to high demand of grains for
feeding for chicken meat and for other meat sector there is scarcity of grains at domestic level.
Due to drought situation production of grains at domestic level in Australia had been impacted
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drastically. High demand and low production have resulted in increase in overall selling price of
grains. It is an important and bigger constraint which is faced by Australian chicken meat
industry because of which overall production of poultry meat has been impacted. Another
constraint faced by chicken meat producers is export opportunity. There is no doubt that export
opportunity of chicken meat helps producers in enhancing overall profitability but due to lower
production it becomes difficult for them to export chicken meat after fulfilling domestic
requirement of chicken meat. Increase in domestic demand of chicken meat has increased
pressure upon meat producers to focus upon enhancing their production so that they can fulfill
domestic requirement as well as can export outside Australia for generation of more profit. Due
to this increased demand and high competition with other sectors of meat it becomes important
for chicken meat producers to buy high price grains for high quality production of chicken meat.
Theme 3 Parameters that influence export ratio in Australian chicken meat
There are many kinds of parameters that influence export ration in Australian chicken
meat industry. As per the view of Selle and et. al., (2018) it is already known that Australian
chicken meat is heavily exported outside Australia. There are various parameters that affect or
impact export ration of chicken meat. One of the main parameters based on which export ration
is impacted is by domestic and foreign demand of chicken meat. In past years demand of chicken
meat as compared to red meat has increasing at domestic level in Australia. This increase in
domestic demand is basically because of hike in price of other meat products and in past few
years taste and preference of consumers as also changed. Demand of red meat and other meat
products has decreased drastically but demand of poultry meat had remained constant. These are
some of the main factors because of which domestic demand has increased due to which export
ration of Australian chicken meat has been impacted. This increasing domestic demand has
lowered focus of chicken meat producers towards foreign export of chicken meat. Another
parameter because of which export ratio is influenced is drought situation in Australia in past
few years. Drought situation has impacted overall quality of grains used for feeding chicken
because of which further overall quality of chicken meat has also been impacted. This
degradation in quality of meat has also result in lowering supply of Australian chicken meat.
Selle and et. al., (2018) elaborates that, drought situation and competition among other sectors
has increased feeding prices a result production of chicken meat has reduced. All the three
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parameters have influenced export rate as due to lower production it becomes difficult for
producers to fulfill both domestic and international demand of high- quality chicken meat.
According to the view of Truong, Liu and Selle, (2016) current situation of covid-19 is
another parameter because of which barrier to trade has increased due to which export rates has
been impacted directly. Most of the countries that are part of EU, United states have high tariff
rate quotas on importing meat from Australia. Due to erase in free trade agreement between
Australia and United States. This tariff rate quotas of EU and US has resulted in reduction of
tariff barriers as impacted export rate of Australian chicken meat positively. As chicken meat
from Australia can be imported at reduced tariff rates and reduction of over tariff quota to zero in
US has resulted in increase in chances of exporting chicken meat from Australia to other
countries. All the factors have simultaneously resulted in influencing export rates of Australian
chicken meat both positively and negatively. It is important for poultry meat producers to focus
upon all the factors so that production and profitability though chicken meat production can be
increased, and impact of high feeding cost price can be reduced.
Theme 4 Ways in which export data help in increasing the Australian chicken meat production
Export data can be used by Australian chicken meat producers for enhancement of
production of poultry meat in a positive manner. As per the view of Erian and Phillips, (2017)
export data can directly impact productivity level of products in a positive manner. Analysis of
export data can help producers to understand countries where chicken meat is consumption is
much more or countries here tariff rates are quite lower. This analysis will help the producers to
understand how much quantity of chicken meat they need to produce and how much quantity of
meat will be exported outside Australia to other countries. This data analysis will also help them
in analysing profit percentage that can be generated from exporting chicken meat to other
countries. Erian and Phillips, (2017) elaborates that, it is extremely important or poultry meat
producers to analyse and understand this data so that they can export their meat products
accordingly both domestically and internationally. According to the analysis of export data of
Australian chicken meat, it can be said that per capita consumption of chicken meat in countries
of South East Asia is quite high such as in countries like Malaysia, Philippines, Thailand and
many more. As per the per capita consumption it can be said that consumption of chicken meat is
high in South- East Asia countries. But if tariff rate quota of export of Australian chicken meat is
compared then it can be aid that due to free trade agreement tariff rate quota of countries of EU
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and United states is quite lower, so exporting chicken meat to these countries can be quite
cheaper. This data can be used by chicken meat producers of Australia so that they can focus
upon production of meat accordingly and export it to other countries for generation of more
profit.
According to the view of Malek, Umberger and Rolfe, (2018) analysis of export data can
provide a brief view upon countries that import high quality chicken meat produced in Australia
in large quantity. Australia has already allowed exporting chicken meat in some countries; this
data can help producers of chicken meat to other countries for enhancement of production of
chicken meat accordingly. Not only this, analysis of tis export data can also help producers in
identifying level of competition in exporting chicken meat to other countries so that level of
export can be determined. Analysis of competition in exporting poultry meat can not only help
them in analysing export level but it can also help them in identifying quality level and product
price which is required to be maintained by them in order to increasing exporting level, gain
competitive advantage. This will further help them in increasing profit percentage and reduce
impact of increasing feeding cost. So, it can be said that there are variety of ways in which export
data can help in increasing chicken meat production.
RESEARCH METHODOLOGY
Research approach
It is a kind of procedure or plan for conducting a research. It helps in identifying ways in
which data can be collected, analysed and interpretated. There are three different types of
research approaches. First approach is inductive approach in which theories and observations are
proposed at the end of research process because of observations (Dodds and Hess, 2020). This
approach is adopted when there is requirement of generation of untested conclusions. In this data
collected is used for exploration of a phenomenon so that main research questions can be
identified. Second type of approach is deductive research approach in which hypothesis is
developed and tested or reaching to a conclusion. In this approach falsification or verification of
theories is done based on hypothesis developed and tested. The pre-existing theories are
describing the brief overview of research study, identifying the suitable information or data in
future expansion.
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Last, type of research approach is abductive research approach. This approach is mostly
used for incomplete observations for generation of testable conclusion. All the three type of
research are used as per the need and requirement of the study. For this dissertation, inductive
research approach has been used because in this secondary data has been collected from previous
research conducted in this area. This approach is quite appropriate and can be used for answering
research question in a much appropriate manner.
Research Philosophy
It is a belief about a way in which data about a topic or phenomenon should be gathered,
analysed, and used. There are two main types of research philosophies. First type of research
philosophy is interpretivism research philosophy. In this philosophy, elements of a study are
interpretated and integrated as per human interest into the study. It is mostly used in qualitative
studies. Next is, positivism research philosophy (Holopainen and et. al., 2020). In this
philosophy, only factual knowledge gained through observations is considered. In this
researcher’s role is limited to data collection and interpretation. It is mostly used for both
qualitative and quantitative studies. Another type of research philosophy is pragmatism. This
philosophy says that a concept is relevant only if it is supported by action. It can also be used for
both qualitative and quantitative studies. It is important or researcher to select appropriate
research philosophy as it helps in providing a way in which research can be conducted. For this
research, researcher has focused upon using positivism research philosophy as this philosophy
can be used for analysing factual knowledge gained though secondary data collected from
various sources and from analysis of quantitative data collected from government websites and
from many other sources.
Research design
Research design is a set of methods and procedures that are used for collection and
analysis of variables that have been specified within a research. To conduct a research in a
proper and appropriate manner it is important to identify research design focused upon by the
researcher. There are three main types of research designs (Perna, 2020). First is exploratory
research design that focuses upon exploring specific aspects of research area. This design is used
for identifying final and conclusive answers to main research questions. It is also used for
exploring specific areas of research paper. Another is descriptive research design in which
specific elements, phenomenon or causes of research area are described in a proper and
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appropriate manner. Next is casual research design which is used within a research paper for
studying main cause and effect relationship in a paper manner. This design is used for any kind
of study but more specifically for analysis of primary quantitative data. For this study,
exploratory research design has been used as it is one of the most appropriate design that can be
used for exploring specific elements of research area. Another reason because of which
exploratory research deign has been used is because it is one of the most suitable design that can
be used for analysis of secondary data collected by the researcher for answering main research
questions in a proper and appropriate manner.
Data collection
Data collection is one of the most important part of any study that helps in answering
main research questions and achieving main aim of the study. It is a process though which
important information can be collected from different sources for answering research problem
(Stoycheva and Favero, 2020). There are two main types of data and each of them have different
methods though which data can be collected. First type of data is primary data which is collected
by the researcher for the first time. There are many kinds of methods though which primary data
can be collected such as interview, survey, observations, focus groups etc. Another type of data
is secondary data. It is a kind of data that has already been published. This type of data can be
collected from different sources such as books, Journals, articles, government official websites,
magazines. For this this study, researcher has focused upon collection of secondary data from
different sources. Secondary data can be collected and analysed for any kind of research paper. It
is basically used for building a base for research and for increasing validity and reliability of the
paper. For this dissertation, secondary data has been collected by the researcher in which past
research papers from online databases have been collected. other than this for quantitative
analysis data from government websites like Australian chicken meat federation has been
collected for comparison of export data of chicken meat and for identification of opportunities
and ways in which market of chicken meat can be expanded can also be identified.
Literature review strategy
For conducting a secondary research, it is important for researcher in development of
literature search strategy. Literature search strategy for this secondary research was done in
following steps:
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 First, identification of main key words that can be used for searching previous research
papers related to min research topic were identified (Al-Ababneh, 2020). Main key words
used for searching already published research paper are- Australian poultry producers,
Australian chicken meat, high feeding price, export data, opportunities, constraints.
 Then identification of offline and online databases though which secondary was required to
be collected was identified. For this research paper, only online databases like google scholar
was used for searching relevant already published research papers were focused upon. Other
than this, data from online government websites were also used for comparison of numerical
data.
 After searching for secondary data, as per the inclusion ad exclusion criteria, selection of
research studies was done. Studies that did not fulfill inclusion criteria were excluded from
the study.
 Lastly data collected were excluded as per their publishing date and sources from which they
were collected. For example, data collected from Australian Chicken Meat Federation
website was included as this data was from authentic source. Research papers published more
than 5 years ago were excluded from the study.
Inclusion and exclusion criteria
For any secondary study it is extremely important to identify inclusion and exclusion
criteria based on which secondary data is collected for analysis and interpretation. Selection of
data based on inclusion and exclusion criteria helps in increasing reliability and validity of the
data (Khairuldin and et. al., 2020). Inclusion and exclusion criteria for selection of secondary
data for this dissertation are:
Inclusion: All the research papers that consist of two or more than two key words were selected
for the study. Research papers that were published within past five years were only selected. All
the research papers that were published in English language were only used. Data available or
collected from government websites were only used like from Australian Chicken Meat
Federation website.
Exclusion: All the research papers published before 2016 were excluded. Other than this, papers
published in languages other than English were also excluded from the study. Data available on
websites that were not authentic or were not authorized by the government were also excluded
from the study.
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