AUSTRALIA is making inroads into once-uncharted country, the European Union (EU) grain-fed beef market, with further gains to be made, producers heard in Armidale this week.
Meat and Livestock Australia (MLA) Europe and Russia regional manager Michael Crowley told the Ebor Beef "Steakholders" meeting despite having to revise carefully cultivated perceptions Australia excelled mainly at grass-fed beef production, it was now filling an increasing share of the EU's high-quality grain-fed quota.
The EU is important to the Australian beef industry because it is our highest-value beef market.
Each beef shipment to the EU averages $9.72 a kilogram, versus $6/kg in our next most valuable market, Singapore.
Growing share in this market earns a proportionately higher return than in other markets, and Mr Crowley is encouraged Australia's share of the EU beef market is rising.
The 48,200 tonne EU grain-fed quota, accessible by only five countries, was introduced in 2010.
By 2012-13, Australia's share of the quota had grown to 8700t, or 27 per cent, and Australia looks like taking a third of the quota in the current year.
The US takes the majority share of the grain-fed quota, filling 19,000t or 51pc in the last financial year, and Uruguay took 9000t based on keen pricing.
Demand for grain-fed beef has been slow to gain traction in Europe - traditionally a market for grass-fed product - especially after the global financial crisis melted down several European economies.
But after EU importers only filled 31,000t of the 48,200t grain-fed quota in 2012-13, Mr Crowley said about 41,000t could be filled this year, with Australia contributing much of the growth.
The EU's 48,200t high quality grain-fed quota is held by importers, with specifications demanding 0-2 tooth cattle having had a minimum 100 days on feed. Importantly, it carries no import tariffs.
The largely grass-fed "Hilton" quota is exporter-held, and carries a 20pc import duty. Australia usually fills its 7150t share.
Mr Crowley is confident Australia can capture an even larger share of the grain-fed quota, especially while the US is in a herd rebuilding phase.
"Price-wise, we're cheaper than the US," he told the Armidale forum.
"We're a lot dearer than Uraguay, but our perceived value is good because we have good shelf life, our quality is very good, we're a consistent supplier with good sustainability messages, and we really have the industry systems that can back up the claims we make for the product."
While tonnages are lifting, there are efforts to also lift value of Australian grain-fed beef.
"Increasing prices will mean increasing the perceived value of the product," Mr Crowley said.
"We're seeing that perception grow.
"Australia as a grain-fed producer in Europe is totally new.
"The most recognisable thing about Australia to Europeans are the road signs showing kangaroos and cattle crossings.
"The associations they have with Australia are not to do with (us) being a high quality food producer, so we have to start from scratch and really work on the messaging."
MLA's marketing strategy, whose success may be judged by the rising share of Australian grain-fed beef imports, works across four areas: market knowledge, business development, Brand Australia and individual brands.