Choice cuts: The popularity of Australian beef exports has boosted industry revenue

The Meat Processing industry has performed strongly over the past five years. Mostly favourable weather conditions and surging export demand have aided the industry. However, production volumes of lamb and mutton, and beef and veal have fallen slightly over the past five years. Strong demand from overseas has boosted domestic beef and lamb prices and encouraged farmers to sell livestock. Increased prices have helped boost revenue for meat processors. Industry revenue is expected to grow at an annualised 6.4% over the five years through 2017-18, to reach $19.8 billion. This includes an anticipated rise of 3.1% during 2017-18. A depreciation of the Australian dollar and high beef prices due to tight cattle supply are expected to support industry revenue in the current year...read more.

Industry Statistics & Market Size
Revenue
$20bn
Annual Growth 13-18
6.4%
Forecast Growth 18-23
Profit
Employment
33,671
Businesses
606

Industry Threats & Opportunities

  • Rising overseas demand has boosted domestic beef and lamb prices over the past five years
  • Imports of beef and pork products have increased over the past five years
  • Adding value to existing meat products provides a significant opportunity to boost revenue
  • Industry Report - Starting a New Business Chapter

    The Meat Processing industry has moderate barriers to entry. The largest obstacles facing prospective industry operators are the high initial establishment costs, which include the cost of obtaining export licences and the expenses of building strong economies of scale. Meat processing is characterised by large-volume production. Economies of scale are particularly important in the generic processing of meats. Many of the basic meat products processed by the industry have low per-unit values, making economies of scale necessary to minimise per-unit costs. Firms wishing to enter the market need to establish large-scale production operations to compete effectively against existing low-cost producers. How...purchase to read more.

    Additional Insights for the Meat Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Meat Processing Industry are

  • Automation - reduces costs, particularly those associated with labour
  • Economies of scale
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Domestic price of beef and Trade-weighted index in the Meat Processing industry impact industry performance..

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    What's in this report

    What is the Meat Processing Industry?

    Industry operators primarily process live animals into meat products. Processors slaughter, bone, freeze, preserve, pack and can meat. Businesses that primarily manufacture meat from abattoir by-products and render lard or tallow are also included. The industry excludes poultry and seafood processors, and smallgoods manufacturers (such as bacon, ham and corned meat producers).

    Industry Products
  • Beef and veal
  • Lamb and mutton
  • Pig meat
  • Other meats
  • Industry Activities
  • Abattoir operation
  • Animal meat packing and freezing
  • Meat (except bacon, ham and poultry)
  • Meat meal or bone meal (except fish or poultry meal)
  • Meat packing (except poultry)
  • Canned meat (except poultry, bacon, ham and corned meat)
  • Dehydrated meat (except poultry)
  • Frozen meat (except poultry)
  • Unrefined animal oils or fats
  • Lard or tallow rendering
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of beef
  • Trade-weighted index
  • Domestic price of lamb
  • Beef and veal production
  • Demand from cafes, restaurants and takeaway food services
  • Demand from food retailing

  • Current Performance
  • Export boom
  • Production and participation
  • Efficiency and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Exports and international competition
  • Profit and participation
  • Value-added products
  • Table: Meat Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Meat Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Meat Processing
  • Meat, Poultry and Smallgoods Wholesaling
  • Fresh Meat, Fish and Poultry Retailing
  • Supermarkets and Grocery Stores
  • Fast Food and Takeaway Food Services
  • Restaurants
  • Cafes and Coffee Shops

  • Key Selling Industries
  • Beef Cattle Farming
  • Pig Farming
  • Sheep Farming

  • Products & Services
  • Beef and veal
  • Lamb and mutton
  • Pig meat
  • Other meats
  • Chart: Meat Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Retailers
  • Wholesalers
  • Food-service industries
  • Food manufacturers
  • Chart: Major Market Segmentation for the Meat Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Meat Processing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Meat Processing Industry

  • Industry Globalization
    Industry Park Pty Ltd, Teys Australia Pty Ltd, Thomas Foods International Consolidated Pty Limited,
  • Table: Industry Park Pty Ltd - financial performance
  • Table: Teys Australia Pty Ltd - financial performance
  • Table: Thomas Foods International Consolidated Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Meat Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Meat Processing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Aus-Meat
  • An organisation that developed a set of objective descriptions for primal cuts and offal products derived from beef, veal, sheep and goat.
  • Feedlot
  • A confined area of land used for controlled feeding of livestock to finish them prior to slaughter or sale.
  • Meat Standards Australia (Msa)
  • The organisation that labels beef and sheep meat with a guaranteed grade and recommended cooking method.
  • Turn-Off
  • The number of livestock sold by farmers and available for market.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Meat Processing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Meat Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Meat Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Meat Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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