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Student Name:Student No:Subject Code:ECO803Subject Name:International Trade & LogisticsLecturer/Tutor:Dr Ali AlaviAssignment Title: Assignment 2 Individual Report & PresentationWord Count:2,492Due Date:I am aware of ICMS policy on plagiarism as stated in the ICMS Student Handbook. This assignmentdoes not breach those requirements nor has it been previously submitted for assessmentcontributing to any other subject or course. The ideas and information that are not mine havebeen referenced accordingly.Signed: Student DeclarationAnalysis of the BeefIndustry in AustraliaECO 803 International Trade & LogisticsLecturer Dr Ali AlaviTable ContentsExecutive Summary………………………………………………………………………………………….1. Introduction ………………………………………………………………………………………………12. Overview of opportunities and risks ………………………………………………………..43. Opportunities in the Australian beef industry ………………………………………..43 – 1 Efficient production methods ……………………………………………………………..43 – 2. Increase demand from Asian markets ………………………………………………53 – 3 Clean & green – True Aussie Beef………………………………………………………84. Risks in the beef industry……………………………………………………………………….104 – 1 Severe drought and flood in NSW and QLD…………………………………….104 – 2 Competitive Markets against South America ………………………………….114 – 3 Higher input prices……………………………………………………………………………125. How risks can be minimized …………………………………………………………………..135 – 1 Generics improvement & Water management…………………………………135 – 2 Sustainable Competitive Advantage ………………………………………………..155 – 3 Efficient supply chain in QLD…………………………………………………………..166. Conclusion……………………………………………………………………………………………….19Reference……………………………………………………………………………………………………….20Appendix A…………………………………………………………………………………………………….24List of TablesTable 1 SWOT analysis of the Australian meat industry ……………………….4Table 2 Operating cost structure summary, beef processor, Australia,United States, Brazil, and Argentina, 2015 – 2016…………………………13Table 3 Regulated cost summary, beef processor, Australia, United States,Brazil, and Argentina, 2015 – 2016………………………………………………….13Table 4 Conclusion Table ………………………………………………………………………..19List of FiguresFigure 1 Top ten exporters of agriculture products, 2018 ……………………….2Figure 2 Australian Q1 red meat exports ………………………………………………..2Figure 3 Distribution of Australia’s 25 million cattle as in June 2016 …..3Figure 4 Top ten world beef exporters & beef producers …………………………3Figure 5 Schematic of Australian beef supply chain ……………………………….5Figure 6 Beef consumption……………………………………………………………………….6Figure 7 China beef sales value growth even stronger than volume growth…………………………………………………………………………………………………………….6Figure 8 Beef export value, Australia and South America ……………………12Figure 9 Value of Genetic Gain for Terminal Index……………………………….14Figure 10 Murray-Darling Basin……………………………………………………………15Figure 11 China share of exports……………………………………………………………16Figure 12 Details of QLD infrastructure ……………………………………………….17Figure 13 Statewide livestock rail network……………………………………………18Figure 14 Drivers of competitive advantages in Australia processing….25List of PhotosPhoto 1 NLIS Tags (1) ………………………………………………………………………………9Photo 2 NLIS Tags (2) ………………………………………………………………………………9Photo 3 True Aussie Trade Mark License ………………………………………………..9List of DiagramDiagram 1 True Aussie Trade Mark License application processes ……..10Executive SummaryThis report aims to examine the opportunities and risks associated with theAustralian beef industry as a business owner. Australia is one of the largestbeef producers in the world, and its beef has a remarkable reputation.Therefore, its future will be opportunistic. In this report, it emphasizesthree areas; efficient production methods, increasing international demandsfor Australian beef, and the salient brand status of “clean and green”. Firstly,efficient production methods enable Australia to apply backgrounding, feedlotand then export overseas. Secondly, this article will be covering Australia’sdominant international markets that steadily provide opportunities for theindustry to grow business. Lastly, the system that Australia tries tomaintain beef cattle safe and disease-free will be discussed.In light of risks, three essential areas will be investigated. In the firstsection, the industry damaged by turbulent weather will be explained becausethese severe weathers hinder the industry poorly. Later, this report will beanalyzing the competitors that emerged at the rapid growth speed in SouthAmerica. Lastly, since a burden of higher input costs carried by Australia isconsidered as a disadvantage, the article will be providing an insight into it.With these risks, the industry may remain forward-looking since it canmitigate these risks; hence, another three elements are considered to providereasons why the risks can be overcome. For instance, although the severeclimate harms the beef industry, Australia could improve its profitability bythe application of genetics analysis. While the competition is intensifiedglobally, Australia is still superior to the competitors. Finally, the higherinput can be offset by the efficient supply chain.This report comprehensively covers these areas; therefore, further researchneeds to select each area to do extensive research. 11. IntroductionAccording to the World Trade Organization (2019), the top seven exporters ofagriculture unchanged. As Figure 1 reveals below, the top export is led bythe European Union, followed by the United States and Brazil is ranked third.For Australia, it experienced the most significant decline among top tenexport countries by 10% due to the enormous fall of wheat and meslin by 34%as well as barley by 13% (WTO, 2019).Although Australia saw the dramatic decline in agriculture exports, the beefindustry has produced a great outcome. There are 47,000 cattle producersin Australia accounted for 20% (AUS$ 12.7 billion) from the total farm valueproduction (Greenwood, Gardner and Ferguson, 2018). The beef exports inAustralia exponentially grew from $4,517 million in 2009 – 2010 to $8,258million in 2015 – 2016 by 83% (Cadence Economics, 2017). From 2011 to2015, the beef production in Australia had been improved by 20.9% from 2.1million tons to 2.5 million tons, and 74% of Australian beef was exportedoverseas in 2015 (Cadence Economics, 2017). The key importers are Japan,the United States, China and South Korea, as Figure 2 reveals below.2Figure 1 Top ten exporters of agriculture products, 2018(WTO, 2019, page 31, Chart 4.2)Figure 2 Australian Q1 red meat exports(MLA, 2019)In terms of beef production in Australia, Queensland owns the most of cattle,and 60% of cattle in Australia are in the northern part (Greenwood, Gardnerand Ferguson, 2018). The country was the world’s third-largest beefexporter across the globe (refer to Figure 4).While the Australian beef industry has demonstrated some positive sides,3there are some risks and challenges faced by the industry. Therefore, thisreport will be aiming to discover some positive and negative elements andhow the industry is in an attempt to mitigate these risksFigure 3 Distribution of Australia’s 25 million cattle as in June 2016(Greenwood, Gardner and Ferguson, 2018, page 994, Figure 3)Figure 4 Top ten world beef exporters & beef producers(Greenwood, Gardner and Ferguson, 2018, page 993, Figure 1)42. Overview of opportunities and risksTable 1 SWOT analysis of the Australian meat industry(PwC, 2011, page 3)3. Opportunities in the Australian beef industry3 – 1 Efficient production methodsIn Australia, the cattle industry is liberalized through its operation.Greenwood, Gardner and Ferguson (2018) point out that the industry ispasture and rangeland-based. Australia comprehensively coversbackgrounding, feedlot or pasture finishing, and so forth. Backgrounding isa system for beef production which pasture and forages are used after calvesare weaned till they are freed in a feedlot (Happer and Kime, 2005). As anexample of Australia as the world’s third-largest beef exporter (Greenwood,Gardner and Ferguson, 2018), Figure 5 shows how efficient Australian beefsupply is operated.5Figure 5 Schematic of Australian beef supply chain(Greenwood, Gardner and Ferguson, 2018, page 995, Figure 4)3 – 2. Increase demand from Asian marketsWith the global trend, MLA (2019b) demonstrates that the Asian market isthe biggest opportunity for beef producers and it is projected to grow furtherin the future (refer to Figure 6). As Figure 1 revealed earlier, the eminentimporting countries in Asia are Japan, South, and China. Notably, a largeamount of beef has been lately exported from Australia to China. The figureof Australian beef exports to China in July between 2017 and 2018 escalatedfrom 9.5% to 24.5% of the total export share (Fortune, 2019). This reportwill be examining Japan, South Korea, China and the United States alongwith national agreements which generate enormous opportunities forAustralia.6Figure 6 Beef consumption(MLA, 2019b, page 2)ChinaIn 2013, Australia exponentially expanded beef exported into China.Australian beef mainly went into hotels and restaurants in China, and beefexports rose four times from AU$149 million in 2012 to $722 million in 2013with annual growth of 383.7% (NAB, 2014) as Figure 7 shows below.Figure 7 China beef sales value growth even stronger than volume growth(MLA, 2019c, page 2)Australia and China made an agreement that came into effect in December2015, the China-Australia Free Trade Agreement (ChAFTA) and ChAFTA7brought tariff cuts at different phases to Australia (Department of ForeignAffairs and Trade, 2018). With ChAFTA, it will eliminate the tariffsimposed on beef imports ranging from 12.5% and 25% by 2024 (MLA,2019c). It will create promising opportunities for Australian beefproducers.On top of that, the outbreak of African Swine Fever (ASF) worldwide hasbeen damaging the Chinese pork industry. China assumes that it will lose55% (193 million out of 350 million) of its pigs by the end of 2019 (Street,2019). In 2019 August, the pork price in China hiked to almost double by46.7% when compared to last August (He, 2019).JapanIt is estimated that Japanese beef consumption will be growing at a slowpace in the next few years. The country is the largest beef export destinationfor Australian beef producers (MLA, 2019d). In addition, Japaneseconsumers are affluent and urbanized when compared to other neighbouringcountries, and there will be continuous demands for a high volume ofquality Australian beef. There are two agreements made between Japanand Australia, Trans-Pacific Partnership (TPP) and Japan-Australia FreeTrade Agreement (JAFTA). Since 2017, Japan has implemented the globalsnapback that has pushed the tariffs on imported beef from 38.5 to 50%. Itis fortunate that under JAFTA, Australian frozen beef is tariffed 27.2%(Gunders, 2017).South KoreaSouth Korea is the fourth largest export market with Australian beefproducts (Department of Foreign Affairs and Trade, 2017). For SouthKorean, Australian beef is well-known and highly reputable. Betweenthese two countries, the trade agreement, Korean-Australian Free Trade8(KAFTA), was signed and came into effect December 2014. KAFTA will lift40% of tariff on Australian exporting beef to Korea by a January 2028 – 24%in 2019 and 21.3% in 2020 (MLA, 2019d).North AmericaThe United States is the second-largest Australian export destination.Under the Australia-United States, Free Trade Agreement signed in 2005,all tariffs imposed on Australian beef were removed. However, 26.4% ofquota tariff has been imposed on it since then, and it will be lifted to zeroafter 18 years (Department of Agriculture, 2019).3 – 3 Clean & green – True Aussie BeefOn top of that, Australia implemented The National Livestock IdentificationSystem (NLIS) in 1999 to reinforce traceability for cattle in line with theiridentification certified by IOS 9001 (NLIS, n.d.). Australia is the first countrythat obtained the technology and NLIS has three core pillows:1. Tag: an electronic ear tag that identifies an individual animal2. PIC (Property Identification Code): it identifies the physical location ofthe property3. Database: to store data of cattle and analyze their movement andassociated details(Queensland Government, 2015)This system enables beef farmers to produce reputable “clean and green”beef products. Any device, along with property statuses such as abiosecurity or disease risk can inform processors and make sure that theaffected cattle are tested at processing properties. NLIS tags are exhibitedas Photo 1 & 2 below.9Photo 1 NLIS Tags (1)(NLIS, n.d.)Photo 2 NLIS Tags (2)(NLIS, n.d.)Furthermore, True Aussie Trade Mark License is used as a brand to appealthat red meats are from Australia-based companies or internationalcompanies who import Australian beef producers. Photo 3 shows thelicensed mark and Diagram 1 explains how to apply for it online (MLA,2018).Photo 3 True Aussie Trade Mark License(MLA, 2018, page 2)10Diagram 1 True Aussie Trade Mark License application processes(MLA, 2018, page 4)4. Risks in the beef industry4 – 1 Severe drought and flood in NSW and QLDAustralia is facing the most severe drought in many years, and this droughthas led to little water in New South Wales and Queensland. The exportearnings as a whole were estimated to drop by 6% in 2019 (Sullivan, 2019).Bell and Burt (2018) describe that this severe drought across these regions11also left little stock of hays and its price doubled.Moreover, the national herd is assumed to descend to 25.2 million, with 7.7%due to the recent drought (Country News, 2019).What is more, Smee (2019) reports that after five years without any rain,widespread flood in north-west Queensland killed roughly 500,000 cattle.4 – 2 Competitive Markets against South AmericaAccording to MLA (2019e), beef production is increasing globally. Especially,South American beef producers are considered as a great threat to Australianfarms since these regions gain more access to Asian markets which Australiahas traded with for years (Hyde et al., 2016). As Figure 8 shows that Brazil’sbeef export grew rapidly and its revenue rose US $500 million to US $2 billion(US dollar in the year of 2000) between 2000 and 2014. The reason for theimmense growth is because of China. China gave Brazil as well asArgentina access into the Chinese market to sell beef in 2018 (Department ofAgriculture and Water Resources, 2019).Then, in 2019 Argentina benefited from this access and its beef sales to Chinawere over two-fold to US $ 870 million (AUS $ 1.3 million) for seven monthsthis year with a rise of volume 21.7% as the top China’s import share, followedby Brazil with 21.3% (Heath, Bronstein and Patton, 2019). That was 129%up year-on-year along with the amount of 185,604 tons.12Figure 8 Beef export value, Australia and South America(Hyde et al., 2016, page vii, Figure S1)4 – 3 Higher input pricesAccording to Australian Meat Processor Corporation (2018), the cost ofprocessing beef in Australia is: 24% higher than the United States; more thandoubled when compared to Brazil; 75% higher than Argentina.Moreover, the labour-related cost is also a significant discrepancy incomparison with other countries. In Australia, 58% of operating cost in totalis generated from the labour-related cost (Australian Meat ProcessorCorporation, 2018). Figure 9 outlines the disparity of input costs in contrastwith other countries.13Table 2 Operating cost structure summary, beef processor, Australia, United States,Brazil, and Argentina, 2015 – 2016(AMPC, 2018, page 5, Table 1)Table 3 Regulated cost summary, beef processor, Australia, United States, Brazil, andArgentina, 2015 – 2016(AMPC, 2018, page 5, Table 2)5. How risks can be minimized5 – 1 Generics improvement & Water managementAccording to Meat & Livestock Australia (n.d.), genetic improvement assistsin enhancing productivity and profitability. Nason (2018) mentions thatsharing genetics data with other farmers reinforces the entire beef cattle’s14profitability as it occurred in Ireland. The country successfully improved by$100 per head (refer to Figure 9). Roughly 30 organizations are willing toshare their data through a central database developed 15 years ago.Another example is BREEDPLAN based in Australia (Pilling andRischkowsky, 2007); its system evaluates cattle’s genetics so-called EstimatedBreeding Values (EBVs) for farmers. MLA (2019) revealed in its report thatthe genetic evaluation helps develop female reproduction performance. Iffarmers are willing to evaluate cattle’s genes and share their data with otherfarmers collectively, the beef industry as a whole will raise their profitability.Figure 9 Value of Genetic Gain for Terminal Index(Nason, 2018)In 2012, Australia implemented plans for efficient water management, theMurray-Darling Basin Plan (Australian Government, 2019). The BasinPlan was developed to achieve the efficient water use and to generate thehealthier and sustainable basin with 2,500-kilo maters across five states;NSW, QLD, SA, VIC and ACT while continuously supporting farmers,industries and Australian communities in these regions. That represents15one-third of the national agriculture production.Figure 10 Murray-Darling Basin(Vidot and Jasper, 2019)5 – 2 Sustainable Competitive AdvantageEven though South American countries such as Brazil and Argentina havecreated strong momentum in the Chinese beef market, Australia is notdependent on China only. As Figure 11 signifies below, Australia stilldominates other international markets, especially Japan, South Korea, anddepends on the Chinese market, only 20% (MLA, 2019a).16Besides, the United States suspended Brazilian beef to be imported into thecountry because the federal inspectors in Brazil accepted bribes to pass theexpired meats to the markets and fabricate sanitary standards (Phillips,2017). It generates opportunities for Australia to export more beef into theUnited States.Moreover, Argentine’s beef exporters still struggle with market access sinceJapan and South Korea still do not allow Argentine to enter their market(Hyde et al., 2016) on the ground that the outbreak of the contagious disease“foot-and-mouth” occurred in 2000 (Bown and Hillman, 2016).Figure 11 China share of exports(MLA, 2019a)5 – 3 Efficient supply chain in QLDAlthough Australia’s input cost is higher than the United States, Brazil, andArgentina, it has an efficient and organized supply chain logistics. As anexample, this report delves into Queensland’s beef supply chain since its stateis the leading beef producer across the country.17As Figure 12 displays the state map, Queensland can be split into twoproduction systems between north and south (Queensland Government,2018). Norther production system generally focuses on live cattle exportssince their meat is low-valued. Additionally, Port of Townsville is the secondlargest port for live cattle exports with more than 200,000 head throughoutthe year (Port of Townsville, 2018). In contrast, the south region is composedof relatively smaller cattle farms, with 70% of processing capacity situated inthe south-east region. Beef cattle are procced domestically and transferredto the Port of Brisbane after boxed for exports.Also, the transporting cattle are supported by Queensland State’s railnetworks, and the state facilitates with 286,000 head movement, as shown inFigure 11 (Queensland, 2018).Although the labour cost is generally high across the country, the beef supplychain led by Queensland can offset the downside.Figure 12 Details of QLD infrastructure(Queensland Government, 2018, page 22)18Figure 13 Statewide livestock rail network(Queensland Government, 2018, page 23)196. ConclusionThis report has examined the opportunities and risks of the Australian beefindustry. This report aims to discover some positive and negativeelements and how the industry is in an attempt to mitigate these risks.Opportunities and risks for the Australian beef industry are as below.Table 4 Conclusion TableFor recommendation, this report has briefly discussed opportunities and risks associated with the beef industry.Although there are manyopportunities for the industry to grow their business, these risks can bebigger threats in the future, particularly climate change.It can affect theagri-business as a whole severely as the drought and flood were witnessedin Australia.Therefore, the entire industry collectively works together tomitigate adverse impacts on climate by reducing carbon emissions with itsstakeholders.Furthermore, as the report investigated the case Irelandthat collaboratively produces profitable outcomes, the success of being asustainable business is collaboration.Taking all stakeholders into account, it would also affect the entire supply chain positively.Appendix A for recommendation theory).(Refer to 20ReferenceAustralian Government. (2019).A plan for the Murray–Darling Basin. Retrieved fromhttps://www.mdba.gov.au/basin-plan/plan-murray-darling-basinAustralian Meat Processor Corporation [AMPC]. (2018).ANALYSIS OF REGULATORY AND RELATED COSTS IN REDMEAT PROCESSING. Retrieved fromhttps://www.ampc.com.au/uploads/FINAL_Cost%20to%20Operate%20Report%20Oct%202018.pdfBell, N & Burt, M. (2018).The drought hay crisis. NSW Farmers. Retrieved fromhttp://www.nswfarmers.org.au/NSWFA/Posts/The_Farmer/Environment/The_drought_hay_crisis.aspxBown, C. P. & Hillman, J. A. (2016).Foot-and-Mouth Disease and Argentina’s Beef Exports: The WTO’sUS–Animals Dispute. Peterson Institute For InternationalEconomics [PIIE]. Retrieved fromhttps://www.piie.com/publications/working-papers/foot-and-mouthdisease-and-argentinas-beef-exports-wtos-us-animalsCadence Economics. (2017).AUSTRALIA’S RECENT MEAT EXPORT PERFORMANCE.Retrieved Oct 28, 2019 fromhttps://fial.com.au/Attachment?Action=Download&Attachment_id=48Country News. (2019, May 16).National herd drops. Retrieved Oct 30, 2019 fromhttps://www.countrynews.com.au/@livestock/2019/05/16/583197/national-herd-dropsDepartment of Agriculture. (2019).Free trade agreements (FTAs) in Force. Retrieved fromhttp://www.agriculture.gov.au/market-access-trade/fta/ftasinforce#ausftaDepartment of agriculture and Water Resources. (2019).Agricultural commodities – Commodity forecasts and outlook Marchquarter 2019. Available fromhttp://www.agriculture.gov.au/SiteCollectionDocuments/abares/agriculture-commodities/AgCommodities201903_v1.0.0.pdfDepartment of Foreign Affairs and Trade [DFAT]. (2017).KAFTA and trade in goods. Retrieved fromhttps://dfat.gov.au/trade/agreements/in-force/kafta/factsheets/Pages/kafta-and-trade-in-goods.aspxDepartment of Foreign Affairs and Trade [DFAT]. (2018).ChAFTA news. Retrieved from21https://dfat.gov.au/trade/agreements/inforce/chafta/news/Pages/chafta-news.aspxFortune, A. (2019).Australian beef exports boosted by China. Globalmeatnews.com.Retrieved Oct 30, 2019 fromhttps://www.globalmeatnews.com/Article/2019/08/08/Australian-beefexports-boosted-by-ChinaGreenwood, P. L., Gardner, G. E., & Ferguson, D. M. (2018).Current situation and future prospects for the Australian beef industry—Areview. Asian-Australasianjournalofanimalsciences, 31(7), 992.Gunders, J. (2017, July 28).Japan ups tariffs on US beef, giving Aussie meat the edge.ABC News. Retrieved Oct 30, 2019 fromhttps://www.abc.net.au/news/rural/2017-07-28/japanese-tariff-on-usbeef-good-news-australian-industry/8753382Happer, J. K. & Kime, L. (2005).AGRICULTURAL ALTERNATIVES: Beef BackgroundingProduction. Penn State Extension. Retrieved fromhttps://extension.psu.edu/beef-background-productionHe, H. (2019, Sep 12).China’s ‘heartbroken’ pig farmers torn apart by pork price spike and African swine fever.2019 fromSouth China Morning Post. Retrieved Oct 31, https://www.scmp.com/economy/chinaeconomy/article/3026906/chinas-heartbroken-pig-farmers-torn-apartpork-price-spikeHeath, M., Bronstein, H. & Patton, D. (2019, Sep 18).Where’s the beef? Argentine ranchers hope more is headed for China.Australian Financial Review. Retrieved Oct 30, 2019 fromhttps://www.afr.com/world/south-america/where-s-the-beefargentine-ranchers-hope-more-is-headed-for-china-20190918-p52spiHyde, M., Thorpe, S., Waring, A., Moir, B. & Gunning-Trant, C. (2016).South America: an emerging competitor for Australia’s beef industry.Department of Agriculture and Water Resources [ABARES].Available fromhttp://www.agriculture.gov.au/SiteCollectionDocuments/abares/publications/SouthAmericaBeef_v1.0.0.pdfJie, F., Parton, K. A., & Cox, R. J. (2013).Linking supply chain practices to competitive advantage: Anexample from Australian agribusiness. British Food Journal, 115(7),1003-1024.Meat & Livestock Australia [MLA]. (2018).True Aussie trade mark licence. Retrieved fromhttps://trueaussielicence.mla.com.au/Documents/True%20Aussie%2022Trade%20Mark%20Licence%20Application%20Criteria%20and%20Process.pdfMeat & Livestock Australia [MLA]. (2019a).Exports to China run red hot. Retrieved fromhttps://www.mla.com.au/prices-markets/market-news/exports-tochina-run-red-hot/Meat & Livestock Australia [MLA]. (2019b).Global Snapshot – Beef. Retrieved fromhttps://www.mla.com.au/globalassets/mla-corporate/prices–markets/documents/os-markets/export-statistics/jan-2019-snapshots/global-beef-snapshot-jan2019.pdfMeat & Livestock Australia [MLA]. (2019c).MARKET SNAPSHOT l BEEF & SHEEPMEAT – Grater China(China, Hong Kong and Taiwan). Retrieved fromhttps://www.mla.com.au/globalassets/mla-corporate/prices–markets/documents/os-markets/red-meat-market-snapshots/2019/mla-msgreater-china-beef-sheep-2019.pdfMeat & Livestock Australia [MLA]. (2019d).MARKET SNAPSHOT l BEEF & SHEEPMEAT – Japan. Retrievedfromhttps://www.mla.com.au/globalassets/mla-corporate/prices–markets/documents/os-markets/red-meat-marketsnapshots/2019/mla-ms-japan-beef-sheep-2019-1.pdfMeat & Livestock Australia [MLA]. (2019e).How are global and Australian beef producers performing?Retrieved fromhttps://www.mla.com.au/globalassets/mla-corporate/prices–markets/documents/trends–analysis/agribenchmark/mla_agribenchmark-beef-results-report_jan-20182.pdfNAB. (2014).THE 2014 AUSTRALIA-CHINA TRADE REPORT. Retrieved fromhttp://acbc.com.au/admin/images/uploads/Copy2ACTradeReport_WEB_v4.pdfNason, J. (2018, May 22).Ireland’s simple message on beef genetics: “a common data platformmakes complete sense”. Beef Central. Retrieved Oct 31, 2019 fromhttps://www.beefcentral.com/beef-2018-review/irelands-simplemessage-for-australia-on-beef-genetics-a-common-data-platformmakes-complete-sense/Phillips, D. (2017, June 22). U.S. Suspends Beef Imports From Brazil.Retrieved Oct 30, 2019 fromThe New York Times. https://www.nytimes.com/2017/06/22/world/americas/beef-importsbrazil-united-states.htmlPilling,D. & Rischkowsky, B. (2007).23Section D Genetic improvement methods to support sustainableutilization. THE STATE OF THE WORLD’s COMMISSION ONGENETIC RESOURCES FOR FOOD AND AGRICULTURE. p 381– 427. Available from http://www.fao.org/3/a1250e/a1250e18.pdfPort of Townsville. (2018).Port of Townsville facilitates Northern Australia’s first cattleshipment to Chinese market. Retrieved fromhttps://www.townsville-port.com.au/port-of-townsville-facilitatesnorthern-australia-s-first-cattle-shipment-to-chinese-market/Pricewaterhouse Coopers. (2011).The Australian beef industry – The basics. Retrieved Oct 28, 2019from: https://www.pwc.com.au/industry/Queensland Government. (2015).NLIS Cattle Video (Queensland Government). [Video File].Retrieved from https://www.youtube.com/watch?v=U5lACzvYj_0Queensland Government. (2018). Strategic Drivers of the Queensland Beef Supply Chain.Young Australia Operations Pty Limited. Retrieved fromErnst & file:///C:/Users/Kohei/Downloads/4-strategic-drivers-qld-beef.pdfSmee, B. (2019, Feb 11).Up to 500,000 drought-stressed cattle killed in Queensland floods.The Guardian. Retrieved Oct 30, 2019 fromhttps://www.theguardian.com/australia-news/2019/feb/11/up-to-500000-drought-stressed-cattle-killed-in-queensland-floodsStreet, C. (2019, Oct 7).UN: African Swine Fever Spreading From China to Other AsianCountries. The Epoch Times. Retrieved Oct 31, 2019 fromhttps://www.theepochtimes.com/un-african-swine-fever-spreadingfrom-china-to-other-asian-countries_3108882.htmlSullivan, K. (2019).Drought wipes billions from Australian farm production. ABC News.Retrieved Oct 30, 2019 fromhttps://www.abc.net.au/news/rural/2019-03-05/value-of-australianfarm-production-drops-abares-figures/10867294The National Livestock Identification System [NLIS]. (n.d.)About NLIS. Retrieved fromhttps://www.nlis.com.au/NLIS-Information/Vidot, A. & Jasper, C. (2019).What is the Murray-Darling Basin Plan and why are we still talkingabout it? ABC News. Retrieved fromhttps://www.abc.net.au/news/2016-11-21/what-is-the-murray-darlingbasin-plan/8043180World Trade Organization [WTO]. (2019).World Trade Statistical Review 2019. Available fromhttps://www.wto.org/english/res_e/statis_e/wts2019_e/wts2019_e.pdf24Appendix AJie, Parton and Cox (2013) identified that competitive advantage could becreated by the improvement of the supply chain. This article is the case ofAustralian processors; it would be useful if the industry taps into this theoryto enhance competitiveness. It is stated in the article that there are fourphases to transfer beef from production, processing, wholesalers and toconsumers. In the article, 600 surveys were distributed and found thatfarmers can take four actions; strategically partnership with suppliers,sharing clear information, building trust among stakeholders, and focusingon CRM (Customer Relationship Management) as Figure 14 demonstrates.It is found that developing information quality, trust, CRM stronglycontribute to responsiveness because if the beef farmers prioritize thesethree elements, they pay close attention to these areas to manage effectivelyand they spontaneously become more responsive.Furthermore, they also discovered that the establishment of strategicsupplier partnerships, sharing quality information and trust play a vitalrole in food quality. Therefore, competitive advantage can be created bytwo attributes; food quality and responsiveness which are contributed byinformation quality and trust most (refer to Figure 14). It would be useful ifbeef farmers put these actions in priority, especially transparentinformation and trust among stakeholders. Moreover, developing asustainable competitive advantage in the industry is essential as the globalcompetition is fiercely being intensified.25Figure 14 Drivers of competitive advantages in Australia processing(Jie, Parton and Cox, 2013, page 1010, Figure 2)
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