Introduction

The red meat industry is an important component of Australian agriculture. It contributes significantly to the value of agricultural production and exports, and provides employment for a sizable proportion of workers in rural and regional areas. By buying farm inputs and supplying products, the red meat sector also stimulates other industries, both upstream and downstream.

The geographical distribution of the cattle and sheep populations within Australia indicates the regional importance of the red meat industry. Nearly 70 per cent of the national beef cattle herd of 24.8 million head is located in regional areas of Queensland and New South Wales, and the majority of Australia’s 76.9 million sheep are located in regional areas of New South Wales, Western Australia and Victoria.

The contribution of the cattle and sheep industries to agricultural production has varied over time, reaching 29 per cent of the value of agricultural production in 2006-07 when crops were adversely affected by drought, then falling to around 22 per cent in 2007-08 as the value of crop production recovered.

The cattle and sheep industries are subject to a number of factors, both domestic and foreign, affecting production which in turn affects Australia’s regional economies where the cattle and sheep industries are located. Over the past 10 years, the industry has become increasingly reliant on the export market as production has risen and domestic consumption per person declined.

The objective of this research is to assess the economic contributions of the red meat industry to Australia and create a database for an analytical framework for the analysis of factors affecting the red meat industry. A detailed assessment of the contribution of the industry and an analysis of the factors affecting it will improve understanding of the red meat sector’s importance to the Australian economy, particularly to regional communities, and may assist in the design of policy measures affecting the industry and regional economies.

An overview of the red meat industry in Australia is provided in chapter 2, while its economic contribution is discussed in chapter 3. The role of the industry in regional economies is examined in chapter 4. The factors affecting the red meat industry are explored in chapter 5, and some concluding remarks are contained in chapter 6.