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2022’s New Agricultural Opportunities

With the beginning of 2022 comes new opportunities for farmers. With the continued growth of herds thanks to favorable conditions over the past year, Australian production is set to ramp up. That’s why it is important to be across the new opportunities in the agricultural sector.

What to expect in 2022

022 marks the highest world food price on record. With production affected by the COVID-19 pandemic and the effect of seasonal conditions affecting the rearing of livestock, have meant a drastic increase in food price throughout 2021. Commodity level analysis by the Australian Government’s Department of Foreign Affairs and Trades has shown that in 2021 the demand for Dairy has grown by 21% and the demand for meat has increased by 6%. This increase is favorable for Australian agricultural producers and exporters with the value of exports expected to reach $61 million by the end of 2022.

Argentina meat exports ban

With the introduction of a beef export tariff in Argentina that will last until 2024, there’s a great opportunity for the rearing of cattle for beef. This export ban will stop the selling and distribution of full cattle carcasses, half carcasses and specific cuts of beef. This tariff means that commercially viable cow products like rump, boneless ribs, skirt and shoulder will be no longer available from Argentinian distributors. This move will not only mean that there will be fewer Argentinian exports in the Australian market but also an opening in multiple international markets. Europe, Israel and Chile are some of the biggest importers of beef that, prior to this decision, relied on Argentina for their beef product. This means with this option, farmers can target increasing demand in the domestic and international markets.

Tariff reductions in the export of meat

With the increase in food prices worldwide one of the ways countries are trying to counteract the price hike is to reduce tariffs. Thailand, Mexico and now Taiwan have announced the decision to reduce the tariffs on the cost of specific imports. For Thailand this tariff reduction has been drastic, cutting their tariffs to zero for all meat exports. Beef has seen a massive push during these campaigns, with all three countries pushing for more beef. Mexico has pledged to import seven tonnes of beef before reapplying tariffs whilst Taiwan will cut the tariffs for beef in half for the next three months. This decision will severely decrease the cost of exporting meat products to these nations. Thanks to Australia’s geographical closeness with the continent of Asia, it provides the opportunity for Australian producers to break into the Asian market.

Saudi Arabia increasing shelf-life for chilled vacuum-packed meats

Though this may not seem like a big change this could be a potential opportunity for a wider range of exporters in further away destinations. Each year Saudi Arabia spends over $276 million (AUD) on meat exports for sale around the country. With the increase in shelf life, vacuum-packed beef can be kept for 120 days before it reaches expiration. This has also been applied to lamb meat, which can now be kept for 90 days before reaching expiration. With these changes, there will be the opportunity for longer freight times of vacuum-packed meat. With this change, there is an opening in the market for Australian producers to export their livestock products to the Saudi Arabian market.

Better machinery options for farming

With the increase of these opportunities, the machinery that is available has also become more efficient and better suited to farmers’ needs. In particular one of the noted improvements is in the way that animals are fed. Mixers have seen significant developments in the ability to provide total mixed ration diets (TMR). Not only are these diets better for livestock health but they also provide a cheaper alternative to other feeding methods. At Ausmix, our mixers are built with a Fibre-X Auger in every mixer, providing correctly processed fibre to your animals. These mixers are specifically built with Australian feeding programs in mind with materials built to withstand the Australian climate.

Contact Us

If you are interested in learning more about our mixers contact our friendly staff today.
We offer a variety of mixer sizes and specifications to suit the needs of your farm.
Our staff are experts and always ready to help the Australian agricultural sector grow!
Contact us at (02) 8880 7873 or send an email to Sales@farmtech.com.au. 

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