Territory Stories

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



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


Northern Territory Cattlemen's Association yearbook; Reports; PublicationNT




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




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

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Northern Territory Cattlemen's Association

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Indonesia & Vietnam - Risks, Opportunities and Tactics and thats reflected ultimately in what population income will drive in our four key livestock markets (Indonesia, Vietnam, Philippines, Malaysia). Population and income trends all bode well for our industry, lets not forget that. Its how we manage and differentiate those markets that will be key to our viability and profitability. The transformation or transition in markets between whats going on from a traditional market to a more modern operation is happening. For example, there are butcher shops in Jakarta now that are starting to use price ranges I believe the more sophisticated these stores become the more they will turn back to Australia as their supply base, and I believe that we have some things in this country that are so good and are not yet being promoted in Jakarta, like our traceability and all of our on-farm systems that can be amplified and need to be done more in this live export space. This is something we havent needed to do to-date because we havent had this competition before. The growth and rapid evolution of Quick Service Restaurants (QSR), like McDonalds, is increasing the drive for integrity in the supply system by manufacturers and will start determining how much of the space we continue to occupy India doesnt have it, we do. Going back to what Jarrod Payne (Millward Brown) was saying earlier about the rapidly changing consumer, which can be applied to Jakarta, where two years ago you didnt see some of the convenience sectors like we do today. An example being GoJek, a company that 3 years ago consisted of 10 entrepreneurs and now employs 250,000 people. They do 2 things: 1. They ferry people around on the back of a motorbike 2. They home-deliver meals; you can get all of your supermarket goods delivered to your home in Jakarta now for $1. What does that mean for fresh, premium product? It means the world is our oyster if we can continue to tap into the convenience and modern sector of where these countries are going. Tactics With all of the politics and price issues aside, there are some key elements we need to take hold of: 1. Boxed Beef v Fresh Beef: Business development, training and market knowledge has allowed us to take a global brand into southern Asian countries that differentiates. As a result there are now supermarket fronts that have True Aussie branding and that is the drawcard because we are a safe, healthy, natural nation. We havent done this in live export because our cattle stop at the port and MLA havent had a mandate to market live imported cattle because the beef is adulterated with local product. But boxed beef is defined by country of origin and we retain our premium and our margins because of that. The lesson here is highlighted when you can go into a modern supermarket in Jakarta and they tell you that the more aggressive we can be at doing this, the better well be. When you look at live cattle, weve got these great feedlots and far more sophisticated processing chains than ever before but weve stopped short of the butcher shop. What were starting to see now, because of this, are pilot programs driven by a few entrepreneurial importers that are trying to introduce their own branding. This will evolve, and I believe it will evolve very quickly because point of difference is key. I would love to walk down a wet market and Diagram 1: Comparative advantage: feeders vs breeders vs self sufficiency Diagram 2: PR and social media strategy: Indonesia 80 NTCA YEAR IN REVIEW 2016/17