Beef production needs profile lift

An urgent need to improve profit returns in the cattle industry has been raised following the launch of a national strategy to increase productivity and improve market access.

The Cattle Council of Australia’s Beef 2015 and beyond strategy identified more input from beef producers was needed to shape the industry’s future, as well as a stronger focus on innovation, foreign investment and expanding markets.

WA Council board member David Lovelock said the Government and industry needed to collaborate on lifting the profile of beef production and fostering more research and development.

Ruabon farmer Jamie Oates said there were benefits to foreign investment and expansion overseas, however current profit margins were a barrier.

“Prices we are getting are about 30 per cent less compared to last year because of the dollar, live export ban and competition from the Eastern States,” Mr Oates said.

He said young people did not perceive farming to be a viable option and the way to address it was to improve price returns and financial incentives, which would lead to more cattle and need for labour.

Nannup farmer Mario Camarri said although the State was good at producing beef, there was too much distribution red tape and a high-profile, genuine sales team was needed to determine how the product could be promoted.

“Research is great in 10 years, and necessary, but our problem is today — making sure we have security of supply for our own food,” he said.

Mr Lovelock said the council’s strategy included attracting more young people into the sector and encouraging current producers to actively participate in discussions about issues.

“Most farmers are pretty conservative and they tend not to take up this new knowledge as readily as they should,” he said.

“There are plenty of ideas to improve productivity but we need input from producers.”

Foreign investment has been raised as a concern for the industry, while others considered it a necessity with declining property values threatening the sustainability of the industry, Mr Lovelock said.

With two-thirds of beef exported and global demand forecast to increase, the region’s proximity to overseas markets was also seen as a significant opportunity.

“(It) will grow in prominence as South East Asia and China continue to expand with a growing middle income demographic,” Cattle council chief executive Jed Matz said.

“Beef producers not only in South West WA, but all across the industry must listen to the market signals that these markets send back.”