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Beef fund cut chews up exports
15 Oct 2003
A review by the Cattle Council of Australia has found that Meat and Livestock Australia marketing funds are "under significant pressure", which could have long-term ramifications for market share in the domestic and export markets. The review found a major issue with the Japan marketing budget; 2001-2002 funding of $16 million fell to $12.7 million in 2002-2003. The amount was boosted by government and processor funds to assist with problems in the wake of Japan's BSE scare. But the budget for Japan will drop to $6.8 million this financial year with only $1.7 million for the BSE recovery program.
At this level of funding ($5.1 million), MLA will be unable to conduct vital consumer campaigns like those employed during the BSE recovery campaign, according to the review.
Australia's market share in Japan had risen from 41 to 49 per cent, mainly at the expense of the US, but it slumped to 35 per cent when marketing stopped for a time early last year, which demonstrates the impact of a big marketing cut.
CCA says it's indisputable that Australia will lose market share over the next year, but nothing can be done about it as the funds are not available.
Weekly Times, 15/10/03, page 10.
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