Territory Stories

Year in review 2016-2017, Northern Territory Cattlemen's Association

Details:

Title

Year in review 2016-2017, Northern Territory Cattlemen's Association

Collection

Northern Territory Cattlemen's Association yearbook; Reports; PublicationNT

Date

2017

Description

Made available via the Publications (Legal Deposit) Act 2004 (NT).

Language

English

Subject

Livestock -- Northern Territory -- Periodicals; Beef cattle -- Northern Territory -- Periodicals; Ranches -- Northern Territory -- Periodicals

Publisher name

Northern Territory Cattlemen's Association

Place of publication

Darwin

Copyright owner

Check within Publication or with content Publisher.

Parent handle

https://hdl.handle.net/10070/304642

Citation address

https://hdl.handle.net/10070/363392

Page content

Indonesia & Vietnam - Risks, Opportunities and Tactics MLA have done some surveys looking at over 200 markets in the region to try and ascertain just what channels the buffalo flows through. We have found that the 60,000 tonnes of buffalo meat is making inroads in the wet market and the Small/Medium Enterprises (SME), which is the bakso ball manufacturers. The implications of this to a consumer or to what were trying to measure are somewhat unknown, but were starting to see some trends. One point is that its difficult for anyone to tell the difference between Australian beef and Indian buffalo when looking at cuts of meat in the wet market where there is no signage to differentiate between the two products. At present, the high-end hotel trade in Jakarta is not buying buffalo, however its starting to appear in these markets in Malaysia. The Indians have worked out that they can send a young bull animal from their dairy herd into the high-end market and its very hard to tell from Australian beef when presented at the store. At the consumer level the beef or buffalo is served as a bakso ball. Again, its impossible to tell the difference by looking at it. Theres are risks and opportunities in this. We also need to consider the manufacturing business: at the moment manufacturers are resistant to using buffalo because of labelling requirements and the cost of re-registration or changes in recipes, which is a good thing for us in the short term. However, the driver that could change this is that buffalo meat is consistent with what they need to make their products; its possible to substitute beef for buffalo and its likely that they will if they think there is a long-term benefit. What about the consumers? A wet market seller will tell us that 80% of their product is sold as beef, 20% as buffalo, but do the consumers know the difference? Theres little chance they do. Consumers in both Vietnam and Indonesia are driven by an affordable price, freshness, and safety of consumption. In Jakarta the consumer does not differentiate between local beef and Australian beef as long as the meat is fresh, safe and affordable, and this has been the case for 30 years. However, with the buffalo coming into the market, it is now important for the products to be differentiated in order to prevent buffalo being sold as beef. MLAs survey showed that 72% of people surveyed said they would not buy buffalo meat, however 54% said they dont have a preference this is where our marketing needs to focus. Opportunities Price, politics and competition will have a bearing on where our markets go, but Im an optimist and so are you by nature so we need to look at how we tackle what is actually real in our market. Every day were waking up in a world, as weve seen from all of the other presenters today, that is looking to consume meat and in ASEAN its no different. The numbers are staggering, we keep seeing this growing middle class and increased disposable income impact on what consumers are wanting. But what does that mean on a local level in Indonesia? The reality is that theres about 7 million consumers in the greater Jakarta region that are earning over uSD 15,000 a year, theyre the people who are buying your product. The high echelon, those earning over uSD 35,000 a year, theres only about a million of them however, both brackets are forecast to increase quite rapidly. In Vietnam its not dissimilar, the numbers are mind-boggling when you look at where we were in 2012 to where were going (see Graph 5, pg 79) millions and millions of people are meeting this middle class, which will drive our consumption Graph 4: Indian Buffalo Meat (IBM)- aggressive Graph 5: Emerging middle class in Vietnam NTCA YEAR IN REVIEW 2016/17 79