Page 6 - Beef_Week
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Stock Journal Beef Week | 2021
          Beef stayed on plates this year



          but it arrived via new channels



          By SHAN GOODWIN

            OR beef, changed
            consumption habits
         Fon the back of
          COVID-19 have resulted
          in channel shifting
          rather than structural
          change, testament to the
          entrenched nature of the
          product in diets both at
          home and overseas.
           Total consumption of
          Australian beef has not
          experienced change - it
          continues to mirror
          production.
           Given the enormity of
          what the global pandemic
          delivered to the way people
          were able to consume
          food - public dining
          effectively shut down
          overnight - that bodes   Changing consumption habits create opportunity.
          strongly for the cattle
          industry, prominent animal   “We have also seen   whereby they place other   market is unlocked, even
          protein analysts believe.  butchers evolve into   attributes above price but   though pork availability
           “2020 has been a fair   offering new services   Mr Gidley-Baird believes   will improve.
          test for the consumption   such as home delivery,   butchers will have to   “It’s an encouraging
          of beef and it has held   supplying into foodservice   work hard to retain the   trend that could
          its ground,” Rabobank’s   and provision of meat   additional business.    potentially change the
          Angus Gidley-Baird said.  for events, re-inventing                        fundamentals of that
           The big agribusiness   packaging, selling pre-  China’s new ways         market for Australian
          bank’s latest Beef      prepared meals and selling   Changed beef consumption   beef,” Mr Gidley-Baird said.
          Quarterly says as old   more branded product,”   habits in China is a      Up to 60pc of beef
          distribution channels   Mr Gidley-Baird said.    different story.         consumed in China was
          recover, it is likely many   “For many consumers, it   It’s more a case of   eaten out of the home
          consumers will revert   was possibly more a revival   movement of the needle,   prior to COVID-19 but
          to previous long-held   of old ways rather than the   Mr Gidley-Baird said.  with the movement to the
          habits but there will be   opening of new doors but   While the changes   retail space, that is fast
          opportunities for those   there will be opportunity   have come more from the   coming down.
          in the supply chain that   now for butchers to   impacts of African swine   “It’s a different dynamic
          have gained through this   capitilise longer term.  fever than from COVID-19   to our domestic market.
          period to ‘lock-in’ new   “The exposure to one-  but both drivers were    In China, it’s more of a
          consumption habits.     on-one conversations with   important, the Rabobank   progression, with new
                                  independent butchers     report said.             supply chains being
          Butcher boom            opened consumers’ eyes     As pork supplies have   developed into retail
          Domestically, the move   to other cuts, the variety   declined in China, the   channels and beef
          in meat sales from      on offer and different   price spread between beef   becoming more a part
          the closed or reduced   experiences with beef.   and pork has narrowed,   of the home-cook diet,”
          foodservice channels into   That will encourage them   making beef a more   Mr Gidley-Baird said.
          the retail space has been   to stay but the onus will be   attractive purchase.  A telling sign has been the
          well-documented and     on the butcher make the    The slowdown and       performance of Australian
          independent butchers    new custom stick.”       closure of restaurants   chilled exports to China,
          have been a big winner.   After all, consumers   and street food vendors   most of which is going into
           The Rabobank report    developed previous habits,   has forced more in-home   the retail channel.
          says the butchers’      which saw supermarkets   consumption, and that     Total Australian beef
          share of the fresh meat   secure an 80 per cent   has accelerated the use   exports to China for the
          market has increased    share of the fresh meat   and skill sets for Chinese   year-to-October were
          two percentage points   market, for strong       consumers to prepare beef   down 27pc but chilled
          for several reasons: no   reasons - convenience and   at home.            exports were up 21pc.
          limit on purchases, the   price being two.         Rabobank takes the      Chilled may be only
          reduced people exposure   There is talk about the   view that the combined   a small portion - 16pc -
          with shopping at a      pandemic experience      drivers will continue to see   of total exports but it
          smaller outlet and more   fostering ‘new values’   increased consumption of   is a category bucking
          home cooking.           among food consumers     beef as the home cooking   the trend.
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