1

Strategies to grow demand

David ThomasonGeneral Manager MarketingMeat & Livestock Australia

per capita Beef consumption

Argentina 62kgsAustralia 36kgsUSA 43kgs

2

SYDNEY BUENOSAIRES

Tropic of Capricorn

AustraliaArea 7.7m sq kmPopulation 20mGDP US$740bn Argentina

Area 2.7m sq kmPopulation 38mGDP US$220bn

SYDNEY BUENOSAIRES

Tropic of Capricorn

AustraliaCattle Population 28mBeef Production 2.2mtDomestic share 35%Export share 65%

ArgentinaCattle Population 50mBeef Production 3.1mtDomestic share 83%Export share 17%

3

$1.2bn$0.1bn$0.5bn

$0.1bn $0.5bn$2.2bn

$6.5bn

The basics of growing demand

1. Ensuring market access

2. Understanding the customer,

3. Understanding the consumer, and

4. Successfully positioning our products and our brands

DIFFERENTIATION

4

0

20

40

60

80

100

Australia110kgs

Beef

Sheep

Pork

Poultry

0

20

40

60

80

100

Argentina86kgs

Beef

SheepPork

Poultry

Beef demand rising

40

50

60

70

80

90

100

110

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

p

Pur

cell'

s D

eman

d In

dex

(198

0 =

100)

highest since 1990

5

Consumers more confident of quality

“How do you rate the quality of _______ you buy today?”

7.2 7.47.67.6

123456789

10

Beef Lamb Chicken PorkSource: Stancombe 2005

always excellent

never excellent

• Cut• Cooking method• Breed• Sex• Growth rate• Marbling• pH• Hanging method• HGPs• Ageing• Lairage• Carcase chilling

Meat Standards Australia

6

Impact on constraint?

26

38

24

57

46 44

0

10

20

30

40

50

60

2001 2002 2003 2004 2005 2006

% A

gree

% mums who limit red meat consumption

Source: Sweeney, Millward Brown

Red meat is the foundation food of our evolution.

7

8

9

10

Our domestic market

is our most important!

Livestock Production Assurance on farm food safety and QA standards

11

12

List of veterinary treatments by therapeutic category10List of feed the animal has been raised on9Address of the aboveName of the abattoirPhone number of the aboveName of the person or company that organized slaughter8Phone number of the feedlot7Breed6Date of slaughter5Date the cattle entered the feedlotAddress of the feedlot4Date of the management commencedAddress of the aboveName of the production process manager 3Sex2Date of birth1

13

National Livestock Identification System

NLIS Database

NLIS Database

NLIS device manufacturer

State Gov’t (NLISAQIS (EU)

NLIS device manufacturer

State Gov’t (NLISAQIS (EU)

Producer(breeder)Producer(breeder)

Produceror

Feedlot

Produceror

Feedlot

SaleyardSaleyard ProcessorProcessor

14