Meat and Livestock Australia chairman Don Heatley says while the nation's beef industry faces a multitude of challenges on an almost daily basis, productivity improvement and market access remained two of the central pillars in that process.
"In this country we need about two percent productivity improvement every year, just to stand still," he told a recent gathering of international beef economists in Brisbane.
"As an industry, we just have to address the productivity issue on an almost daily basis. Without a strong and consistent industry-wide approach to productivity improvement, we will fall behind in our international competitiveness ? there is absolutely no doubt about that."
Mr Heatley said in a similar fashion as to what was happening in Brazil, the Australian beef herd was shifting north, driven largely through the potential to gain economies of scale and consequent greater productivity by moving into more extensive areas. In many cases these regions still offered scope for further development.
"At the same time, general productivity in northern regions has to continue to improve," he told the visiting economists. As an example, he said Indicus-based herds of Northern Australia could make a major jump in productivity simply through using available tools to drive further genetic improvement.
Another critical factor that would drive the northern industry's fortunes was market access.
"As a nation, being 65 percent export market-dependent, market access is the blood in our veins. If we are unable to secure reasonable access, then we can quickly get into trouble," he said.
"Building blocks and systems that have been created within the Australian beef industry like NLIS, MSA and LPA have helped us achieve and maintain unparalleled market access across the world."
One of the regional market access challenges facing cattle producers in Northern Australia at present was the 350kg weight limit for cattle exported to Indonesia, as well as the Indonesian Government's recent announcement that it will cap cattle imports at 452,000 head this year.
To address this issue Mr Heatley said a number of activities had been undertaken by both the Australian and Indonesian industries, who are concerned about the impact of the cap on the northern cattle industry as well as the impact that tightened supply would have on Indonesian cattle producers and beef consumers.
The Indonesian industry is seeking an increase in cattle import permits from its government to ensure it will be able to meet demand for beef from local consumers. Simultaneously, the Australian industry is working with the Indonesian industry to ensure Australia is viewed positively in Indonesia.
While the beef industry generally was under pressure from rising input costs, a recent study of northern beef businesses revealed there is a lot of variation in performance, Mr Heatley said.
"The top 20pc of Queensland producers averaged an 8.5pc/year return on asset, while the overall average was just 2.6pc."
MLA programs for northern beef focused on genetic improvements, optimising pasture use as well as productivity and sustainability in grazing and feeding systems.
* Don Heatley will outline some of the new initiatives supporting the northern beef industry during an address at the Charters Towers Meat Profit Day.
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