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Prospects for Livestock Exports. Michael Finucan Manager – Livestock Exports Meat and Livestock Australia. Overview. Industry overview Live sheep trade Volume and Value Key Markets what's driving demand? can we supply?. Industry Overview.
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Prospects for Livestock Exports Michael Finucan Manager – Livestock Exports Meat and Livestock Australia
Overview • Industry overview • Live sheep trade • Volume and Value • Key Markets • what's driving demand? • can we supply?
Industry Overview • The Hassall Report (2006) found the industry creates 13,000 jobs and contributes $1.8billion to the economy annually • In 2008 the total livestock exports was worth $975 Million
Demand Factors • Price • Australian Dollar • Sea Freight • Domestic sheep supply • Competition / Alternative supply • Religious requirement • Government subsidies • Humanitarian aid
National flock falls 7.6% in 2007-08- largest decline in WA -8% +2% -7% -22% -12% -6% 13%
In Market Competition • Who is our key competitor in the market?
In Market Competition • Who is our key competitor in the market? • Livestock from competitor countries like Somalia, Iran, Sudan
In Market Competition • Who is our key competitor in the market? • Livestock from competitor countries like Somalia, Iran, Sudan • Do we compete with Imported Chilled and Frozen beef
Religious requirements • 2 key religious festivals • Ramadan • Is the Islamic month of fasting, in which participating Muslims do not eat or drink anything from dawn until sunset • Eid ul-Fitr - Festival of Breaking the Fast • Hajj pilgrimage • The Hajj is a pilgrimage to Mecca • Eid al Adha– Festival of the sacrifice
Humanitarian Aid • Oman • Approximately 50% of the volume exported in 2008 was for charity • Sheep are purchased by local Toyota dealer (Saud Bahwan) and distributed to the poor. • This demand has seen 2008 annual volume reach 741,000hd
Oman Charity Volume
Prospects for 2009 • Demand to remain strong • Religious needs • Food security issues • Humanitarian aid • Supply will be the issues • Australian flock to decline a further 5% • Extra pressure on already tight supply • Savings in currency will be offset by cost of sheep