Lack of cattle supply and strong competition from other global buyers has held back the potential of what is widely considered one of the best trade deals the beef industry has struck, the free trade agreement with the United Kingdom.
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Rules around how accredited cattle demonstrate eligibility also need to be modernised for the potential to be fully realised, beef exporters say.
A year after the landmark UKFTA kicked in, tens of thousands of tonnes of zero import duty quota access for both sheepmeat and beef remain.
Less than 10 per cent of the beef quota for the first quarter of 2024 has been used.
Still, between the end of June last year and the end of January 2024, exports of beef to the UK increased by 411pc compared with the same period the year before.
"That's a glimpse of what we can see for the future from the opening of this market," Agriculture Minister Murray Watt said.
First-year tonnages of up to 35,000 tonnes of tariff-free Australian beef entering the UK will gradually increase over the next 10 years. After that, a volume safeguard provision will apply for an additional five years and then it will be entirely a free market.
The UK is one of the highest value markets, in dollars-per-kilogram terms, that Australian beef exporters supply.
Britain's red meat sector has been lobbying hard ahead of the UK election later this year for no changes that might facilitate greater Australian volumes being shipped.
Stewart Hanna, sales director with W W Giles, one of the larger meat importers servicing the UK and Europe, said extra shipments of Australian beef to the UK had not really eventuated due to both market conditions and the EUCAS rules.
He said the red meat industry in the UK had been vocal in its opposition to extra volumes of Australian beef but that would have been far worse if boatloads of meat were being shipped.
"The Agriculture and Horticulture Development board has taken non-equivalent jabs at Australia's Livestock Production Assurance program versus the UK's food assurance scheme Red Tractor, claiming it does not meet its high standards," he said.
Mr Hanna said most of the Australian meat his company was bringing in was going into the catering and restaurant trade.
"At the moment there is no mention of Australian brands and country of origin on menus but that will slowly change," he said.
"Our customers do realise that this product is high quality.
"Grainfed is not well known here, so getting a premium for such good meat only happens once you've got customers who have had a great experience.
"Angus claims are even harder to get a premium on, as there is huge loyalty to Scottish Aberdeen Angus here.
"Retail presence is our great challenge, as everything here in supermarkets has British Beef and the Union Jack emblazoned on packaging. It will be a slow burn, but it will happen.
"But we will need more volume if we are going to crack that sector too."
Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
