Speaking at Westpac’s first Future Leaders Forum for the beef industry, Smirk said local producers should look to establish quality brands and high-value meat products to maintain a competitive edge in export markets.

"Local producers should be prepared for China to be an increasingly aggressive market," Smirk says.

"Given the potential scale of the Chinese beef market, local operators will try to compete with established export nations like Australia by supplying their own market. Australian producers should aim to capitalise on their experience as quality producers rather than compete in bulk industry.

"The advantage for Australian producers is that, while China is a labour-rich nation, it is also land-poor with less agricultural property available than many developed nations. Since China cannot increase fodder production to meet demand, it will be forced to import its grain."

Smirk says while the Australian beef industry is in a strong position, the threat to local producers from South American nations such as Brazil could impact on future performance.

"Brazil is still in the early stages of development and its progress remains uncertain, but with access to vast water resources and fertile soils, it needs to be considered as a looming competitor to Australian producers, especially once it resolves its disease problems, increases production and invests in infrastructure to meet its expected potential," he says.

Source: Blues Country Magazine