Beef Central and Sheep Central caught up with MLA’s regional managers for Australia’s three biggest red meat markets while they were in Brisbane this week – Paul da Silva (North America); Travis Brown (Japan/Korea) and Murray Davis (Greater China) – click on video above to see our full interview – click on video above to see our full interview

HOW is the war in the Middle East affecting consumer sentiment in Australia’s major red meat export markets?

Meeting in Brisbane this week, Meat & Livestock Australia’s regional market managers for the United States, Japan/Korea and China took time to chat with Beef Central and Sheep Central on Tuesday about conditions in their respective markets, including how the Iran conflict is being felt by consumers on the ground. (You can listen to the full interview in a special edition of Week in Beef podcast here)

With the conflict just over two weeks old, all noted it is still early days and there is little in the way of definitive market data yet to draw upon.

However, they reported varying levels of anecdotal impacts at consumer level.

MLA North America region market manager Paul da Silva

In the United States, Paul da Silva said the nation’s involvement in a foreign conflict was unsettling for many consumers.

“The thing that has noticeably happened is things like fuel prices changing and discussion about what that means, and is this the first of other things that will change?

“So I would say that’s just flowing through to uncertainty.”

Eating red meat remains culturally significant in the US and is closely tied to a sense of normality in uncertain times, he said.

“Demand for red meat seems to be very, very tied to the cultural significance of meat being the centre of the meal in the United States, whether they’re dining out or eating at home, whether they’re eating in fine dining or a QSR (quick service restaurant) kind of context.

“It seems to anchor the American way of life, that America they’re living normally, because that is such a feature, and I think that seems to be coming through in what we see – wherever people can buy meat, they still are.”

MLA Japan and Korea market manager Travis Brown

Travis Brown, who represents Meat & Livestock Australia in Japan and Korea, said the Middle East conflict is affecting consumers “to a degree” in those markets.

“Certainly from a trade point of view, there’s nervousness around price in particular, what increased fuel costs are going to do to supply chains, disruption to supply chains and all those sort of things.

“There’s certainly a nervousness around it, and that extends far beyond just the red meat category or the beef category, that extends into everything, where both nations are net importers of food.

“They need food, so there’s concerns around that.

“I’d say from a consumer point of view, they’re relatively risk averse consumers in the first place, So certainly keeping an eye on those sort of things.”

MLA Greater China region manager Murray Davis

Regional manager for Greater China, Murray Davis, said many of the effects of the Middle East conflict were unlikely to be felt directly by consumers in China.

“I think most of the impacts will be cushioned by the Chinese government,” he said.

“So, for example, petrol prices haven’t moved, and the government will continue to subsidise those to maintain stability of their energy supply.

“They’ve also got very, very large strategic reserves.

“So I don’t see any kind of crisis and the energy supply to China, certainly in the short term.

“We have heard reports that some of the Brazilian beef that does go to China has been delayed, the transport routes have been disrupted going through the Middle East, but how enduring that is, I couldn’t say.”

The MLA regional managers also shared their views on current conditions in their repsective markets, including the growing impact of South America product in export markets, and how the outlook for Australian exports is shaping up.