The US President’s recent announcement of a flat 10 per cent tariff on all imports – including Australian beef and dairy – signals a return to protectionist trade policy and will likely disrupt global supply chains.
While this presents challenges, it also opens strategic opportunities for Australia to capture lost US market share in key Asian and Middle Eastern markets.
Capturing the US share of premium Asian markets
In 2023, the US dominated beef exports to Asia, accounting for over 70 per cent of South Korea and Taiwan’s imports, with nearly US$2 billion sent to China. Tariff increases on US goods create a timely opening for Australia to strengthen its foothold.
- South Korea: Australia can expand chilled beef exports under Kafta, leveraging its premium product reputation.
- Taiwan: With the US holding 73 per cent of the chilled beef market share, Australia can increase exports through CPTPP and consistent supply.
- China: Chafta offers Australia a key advantage to boost chilled and frozen beef exports in place of US suppliers.
- Vietnam: Previously reliant on US imports, Vietnam is now an accessible growth market for Australian beef and dairy under AANZFTA.
Expanding into the Middle East
Beyond Asia, the Middle East presents a high-growth opportunity. Countries like Saudi Arabia, the UAE and Kuwait are increasingly sourcing quality beef and dairy from Australia.
To capitalise, Australia should:
- Strengthen ties with distributors and retailers.
- Invest in cold chain capabilities.
- Promote its food safety and premium credentials.
- Pursue trade agreements to reduce non-tariff barriers.
Shifting to margin-driven exports
Australia must also evolve its export strategy to focus on value, not just volume. High-margin products such as branded beef (eg: Wagyu) and functional dairy (eg: high-protein milk) are in demand globally. Success depends on:
- Real-time market insights to track consumer preferences.
- Agile supply chains to respond to shifting demand.
- A production focus on high-value categories, such as premium cuts and infant formula.
Long-term growth through partnerships
Sustainable growth will rely on:
- Traceability and certification to meet premium market requirements.
- Collaborations to develop private-label offerings in emerging markets.
- Government engagement to maintain and expand trade agreements.
Conclusion
With US exporters facing new tariff barriers, Australia has a window to rebalance its beef and dairy exports. By leveraging trade agreements, focusing on high-value products, and expanding into emerging regions, Australia can strengthen its position in the global premium protein market.
- Argon & Co, a global management consultancy specialising in operations strategy and transformation across the beef and dairy sectors, helps businesses navigate global market shifts. For strategic advice on navigating tariff impacts and export opportunities, contact Joe Coote, Strategic Advisor, or Frans Verheij, Partner and Consumer Goods Industry Lead.
