Key points:
- The last 10 years has seen a significant increase in the volume of Australian boxed beef exported to the Middle East and North Africa region.
- Accelerated economic growth in the region has led to more demand for higher quality grades and cuts of beef.
- From 2016–17 to 2021–22, the average unit price of Australian beef exported to MENA has risen more rapidly than the average to all markets.
Australia has been a major and consistent supplier of red meat to the Middle East and North Africa (MENA) region for decades.
While Australian exports to the region have previously skewed towards live sheep, frozen mutton and chilled carcase, the last 10 years has seen a significant increase in the volume of boxed beef. In fact, beef has been the fastest growing export among all red meat and livestock categories over the past decade. The United Arab Emirates (UAE) and Saudi Arabia markets have both been among Australia's top 20 most valuable beef export markets consistently for the past eight years.
Traditionally, MENA consumers' access to domestic beef was predominantly lean product coming out of the local dairy industry – hence, local beef dishes tend to use slow, wet and dry cooking methods and heavy spicing. To meet growing consumption demand, the region's beef import volumes have been dominated by India and Brazil, particularly in what had previously been relatively price-sensitive and undifferentiated beef markets.
However, over the past decade of accelerated economic growth (driven by a young population, already-high urbanisation, increasing disposable incomes and expanding tourism sectors), western-style foodservice has seen rapid development. This, in turn, has led to more demand for higher quality grades and cuts of beef.
In addition, Saudi Arabia's ban on Brazilian beef from 2013 to 2015 due to an atypical Bovine Encephalopathy detection draw consumers' attention to the benefits of Australian beef. Its traceability, high quality and sustainability credentials have cemented it as a favourite among import suppliers.
Australia has played a pioneering role in developing the region's market for premium beef. Over the past five years from 2016–17 to 2021–22, the average unit price of Australian beef exported to MENA has risen more rapidly than the average to all markets – unit prices to MENA increased at a CAGR of 14.9% compared to 7.8% to all markets.
Australia competes in the mid- and higher-end segments with suppliers such as the US, South Africa, New Zealand and European countries, and more recently also Russia and Japan.
As Australian beef exports begin to lift on the back of increased supply, MENA is expected to continue to be a valuable and growing market region for Australia.
Australia competes in the mid- and higher-end segments with suppliers such as the US, South Africa, New Zealand and European countries, and more recently also Russia and Japan.
As Australian beef exports begin to lift on the back of increased supply, MENA is expected to continue to be a valuable and growing market region for Australia.
