Conclusions

The red meat sector is vital to Australian agriculture. It is a large contributor to the value of agricultural production and exports and also accounts for a significant proportion of rural and regional employment. Developments in the red meat sector also affect other industries, both upstream and downstream.

There is a greater reliance on the red meat industry, from cattle and sheep production through to meat processing, in regional economies compared with urban economies. However, the reliance on the red meat industry varies across states and regions. For example, parts of the Northern Territory and Queensland are heavily reliant on the cattle industry, while parts of New South Wales and Victoria are reliant on the sheep industry. Reliance on meat processing is reflected in the size and location of processing plants.

The proportion of Australian red meat exported has increased over time. External factors such as changes in trade barriers, exchange rates and competition from other red meat exporting countries can have a large effect on the industry as well as on regional economic activities.

Understanding the effects on the industry of domestic and external factors may assist in designing policies affecting the industry and regional economies where red meat production and processing are important economic activities.

With the construction of regional databases (appendix B) covering red meat industry activities, this research provides a basis for further analysis of factors influencing developments in the red meat industry and on regional economic activities, using an economy-wide modelling framework such as ABARE’s Ausregion model (for a description of the Ausregion model, see ABARE’s website).