Industry Structures

Topics: Meat, Livestock, Domestic sheep Pages: 5 (1364 words) Published: May 28, 2014
Contents
EXECUTIVE SUMMARYIII
INTRODUCTION1
MAIN MARKETS AND END USES1
SUPPLY AND DEMAND PATTERNS2
KEY COMPETITORS2
INDUSTRY STRUCTURES AND POLICY FRAMEWORKS3
FUTURE INDUSTRY CHALLENGES4
INDUSTRY AGENCIES AND BODIES4
CONCLUSION5
REFERENCES6


List of Figures
FIGURE 1. LAMB UTILISATION AND RETAIL PRICE (MLA, 20131

Executive Summary

The lamb Market is a volatile market with many highs and lows, this is a mature market with a constant and promising future to come. A rise in global markets will usually generate an increase in return off livestock, this can increase the local prices. Local bodies or lobby groups like National Farmers Federation, Sheep Cooperative Research Centre, Department of Agriculture for Fisheries and Forestry and Meat and Livestock Australia help to maintain a reasonably simple trading system. In this report it was shown that the future has potential and with the support of the producers and industries behind the live trade of lamb things will pick up and move on in favour of the market over time.

Introduction
The lamb Market is a volatile market with many highs and lows, this is a mature market with a constant and promising future to come. In the report it will cover; the main markets and end use applications for the product, monitoring the market and change of supply and demand patterns over the years. It will identify the future trends and challenges in the lamb industry, including the competition and locally and overseas. The report will also cover how and what the industry agencies do to protect the lamb market for Australia. Main Markets and End Uses

There is a growing export demand for both lamb and mutton, with China being the largest export destination for Australia followed by India, Kuwait and Italy (IBIS, 2013) Australia’s sheep flock is the second largest in the world although the flock has been shrinking and Australia is the largest exporter of lamb according to IBIS world report. Producers sell prime lamb and mutton to meat processing markets or export markets. A rise in global markets will usually generate an increase in return off livestock due to more numbers being sold and cost increasing for them. In relation to sales of lamb and mutton, the average Australian consumes around 11kg of lamb and mutton every year (IBIS, 2013) ABARES estimates and annual increase of 3.1% for lamb and 6.1% increase for mutton over the four years through to 2016-17. (IBIS, 2013)

Figure 1. Lamb utilisation and retail price (MLA, 2013)
Supply and Demand Patterns
Whilst there are large countries Australia’s population is growing, therefore the demand for meat is on the rise and lamb being a popular meat and a substitute for others such as beef and chicken. In 2011-2012 Australia exported 49 percent of all lamb and 97.5 percent of all mutton produced in Australia, the total value of these lamb exports was 1.094 million. Around 19,240 Australian broad acre farms are classified as lamb around 19,240 Australian broad acre farms are classified as lamb producers the majority of these farmers are mixed enterprise, a substantial proportion of their income coming from cropping, beef cattle, sheep and wool, as well as from the sale of lambs. Lamb producers generally sell their lambs to slaughter houses, feedlots or export. Around 9400 slaughter lamb producers earn more than 20 per cent of their total farm receipts from the sale of slaughter lambs and are classified as specialist slaughter lamb producers. With the numbers of lamb sitting steady we can see.

Key Competitors
Competition for the Australian Lamb Market is continually increasing from overseas buyers and investors, despite remaining one of the largest and most valuable market for lamb. The reasons for this include a challenging domestic consumer market and strong growth in overseas markets, this is due to the decrease in the Australian dollar decreasing. (MLA, 2012) New Zealand is one of...

References: http://www.mla.com.au/Prices-and-markets/Trends-and-analysis/Sheepmeat-and-lamb/Live-exports
http://www.daff.gov.au/animal-plant-health/welfare/export-trade
http://www.daff.gov.au/animal-plant-health/welfare/export-trade/live-vs-frozen
http://www.nff.org.au/
http://www.sheepcrc.org.au/about/about-the-sheep-crc.php
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