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Australian Meat and Live-stock Corporation Act - Australian Meat and Live-stock Corporation - Report and financial statements, together with Auditor-General's - Report - Year - 1983-84


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The Parliament o f the Commonwealth of Australia

AUSTRALIAN MEAT AND LIVE-STOCK CORPORATION

Annual Report

1983-84

Presented 25 February 1985 Ordered to be printed 28 March 1985

Parliamentary Paper No. 88/1985

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AUSTRALIAN MEAT & LIVE STOCK CORPORATION

13th November 1984

The Hon. J . C. K erin, MP M in ister for P rim ary Industry, P arliam en t House, CANBERRA, A.C.T. 8600

D ear M inister,

U nder th e te rm s of Section 4 9 (1 ) of th e A u stralian Meat and Live-stock C orporation Act 1 9 7 7 ,1 subm it a re p o rt of the C orporation’s activities together w ith fin an cial sta te m e n ts for th e y e a r ended 30 Ju n e 1984.

The y e a r saw a n um ber of changes p u t in tr a in to th e ad m in istratio n and s tru c tu re of th e C orporation. One of these w as the reco n stitu tio n of th e Board of th e C orporation an d th e ap p o in tm en t of Board Members based on c riteria of relev an t b u sin ess acum en and experience th ro u g h a form al in d u stry selection process. This cam e into effect im m ediately after the end of the year under review.

O verseas a large th r e a t arose to th e econom ic well-being of the A ustralian beef in d u stry . I refer to th e increased possibility of the European Economic C om m unity dum ping subsidised p ro duct in Pacific B asin m arkets. EEC practices have already forced A u stralia out of m an y m arkets around the w orld and, as a resu lt, o u r ex p o rts have become con cen trated in th e Pacific Basin. This area now accounts for aro u n d 80 per cen t of o u r to tal overseas trade, w ith Ja p a n (our second biggest m ark et after th e USA), th e Republic of Korea, Taiwan, M alaysia an d Singapore being sig n ifican t p u rch asers.

With th is in m ind th e Economics and Finance Division of th e Corporation prepared a paper, “The T hreat of EEC Beef E xports to Pacific Basin M arkets”, giving the background to and focusing a tte n tio n on th e th reat, and possible strategies th a t m ig h t be ta k e n a t governm ent and b u sin ess level. I t w as presented to your G overnm ent as a briefing p ap er and w as distributed also to overseas governm ents, local an d foreign b u sin ess com m unity leaders, to bring w hatever p re ssu re is possible on th e EEC.

Page 2

The paper, p erh ap s the m ost im p o rtan t p repared by the C orporation in several y ears, received w idespread coverage in w orld m edia w ith reactions noted as far afield as Zimbabwe and as close to hom e as New Zealand.

On th e domestic scene the cattle h erd of 22.2 m illion head a t 31 M arch w as 1.4 p er cent below last year’s figure. Sheep and lam b num bers — a t 140.6 m illion head — w ere up 5.6 per cent, a reflection of flock rebuilding by producers in

response to favourable seasonal conditions and im proved lam bing rates. These figures also dem onstrate th e efficacy of Governm ent drought assistance w hich helped m itigate losses of breeders during the previous four-year drought. W ithout th a t assistance, producers would n o t have been in a position to s ta rt

rebuilding.

Total red m eat production fell to 1.987 m illion to n n es carcase weight, a drop of 14.1 per cent, w ith beef and m utton production show ing su bstantial losses.

Overall saleyard prices for cattle, sheep and lam bs w ere up, a resu lt of reduced m ark etin g of cattle and stro n g com petitive dem and betw een ab attoir operators an d cattle fatteners.

One d irect re su lt of the fall in production of red m eat w as a corresponding decline in dom estic consum ption, down six per cent a t 1.167 m illion tonnes.

E x p o rts also fell, to 571 216 tonnes shipped w eight, w hich is 28.3 per cent below the 1 9 8 2/83 level.

As to th e future, I believe th a t the industry, w hich m eans so m uch to the A u stra lia n economy, will continue to have its in trin sic problem s but such inn o v atio n s as th e Computer Aided Livestock Selling system w ill help m ake life ea sie r for all sectors of the industry. The m ajor problem, still unsolved, is th a t

th r e a t of EEC subsidised product being dumped on world m arkets.

Y ours faithfully,

R AUSTEN C hairm an

Page 3

r

AUSTRALIAN MEAT & LIVE-STOCK CORPORATION

x ______________________ /

HEAD OFFICE

Aetna Life Tower, Hyde Park Square, Elizabeth & Bathurst Streets, Sydney GPO Box 4129, Sydney NSW , 2001. Telephone: (02) 267 9488. Telex: AA22887, Cables: AMLC.

CORPORATION MEMBERS Chairman: R. Austen, AO Deputy Chairman: W. G. Hunter, BEc (Hons), FASA G. S. Ashton-Jones

M. J. Blarney (Government Representative) R. T. Ibbotson R. G. Mclver, BSc (Hons), PhD, MBA I. H. Park D. B. Trebeck, BScAgr (Hons), MEc R. B. Vaughan J. Ware

SENIOR OFFICERS OF THE

AUSTRALIAN MEAT AND LIVE-STOCK CORPORATION Acting Managing Director: Assistant General Manager: Acting Assistant General Manager:

Marketing Services Director: Technical Services Director: Publicity Director:

Acting Finance and Administration Director: Acting Economics and Statistics Director:

R. S. Jordan, DEM K. E. Begaud, AASA, CPA, FAIM D r B. J. Standen, MAgEc, PhD L. G. Spencer L. E. Brownlie, MScAgr Russell Gray J. Perrin

M. A. Hayward, BScAg, MCom

CORPOR ATION MEMBERS 1983/1984 Chairman: R. G. Jones Producer Representatives:

Exporter Representatives: Government Representative: Members, Special Qualifications:

T. H. Bryant, N. W. Seccombe, J. B. Newman, G. E. McCamley, MBE, E. I. Ashby

I. P. Kennedy, J. Ware M. J. Blarney R. Austen, AO, J. K. Horwood

Page 4

STATE OFFICES AND MANAGERS New South Wales: R. Wilson,

Victoria:

Aetna Life Tower, Elizabeth & Bathurst Streets, Sydney, NSW. Phone: 267 9488. Telex: AA22887. Cables: AMLC.

R. Dann, 367 Collins Street, Melbourne, Vic. Phone: 62 5792. Telex: AA32075. Cables: AMLC.

Queensland: P. Troja, 79 Eagle Street, Brisbane, Qld. Phone: 221 4049. Telex: AA41254. Cables: AMLC.

South A ustralia: J. S. A. Wotton, 68 Grenfell Street, Adelaide, SA. Phone: 233 5177. Telex: AA82518. Cables: AMLC.

Western Australia: Μ. E. Basile, 172-176 St. George’s Terrace, Perth, WA Phone: 321 9055. Telex: AA92487. Cables: AMLC.

T asmania: B. Christie-Johnston, P.O. Box 94, Glenorchy, Tasmania. Phone: 72 6812. Telex: RASTAS AA57228.

OVERSEAS REGIONAL DIRECTORS OF AUSTRALIAN MEAT & LIVE-STOCK CORPORATION Europe: P. W. Russell,

North A m erica:

9 Kingsway, London WC2. Phone: 836 3018. Telex: 887169 (AMLC-G). Cables: AUST-MEAT, LONDON WC2.

R. L. Hood, 11th floor, 805 Third Avenue, New York, NY 10022. Phone: (212) 486 2405 Telex: 226093.

N orth Asia: J. F. Schumacher, World Trade Centre Bldg, 4-1 Hamamatsucho 2-chome, Minato-ku, Tokyo, 105, Japan. Phone: 435 5785.

Telex: J25669. Cables: TOKAMLC.

South E ast Asia: K. R. Wilson, 2302 Peninsula Plaza, 111 North Bridge Road, Singapore 0617. Phone: 3384222. Telex: RS21009. Cables: MEATCORP.

M iddle East: P. M. L. Wood, Yateem Centre, Almutanabi Road, Manama, Bahrain. Phone: 244009. Telex: 490 9476 AMLC BN.

Page 5

Liaison with Industry During the year the Corporation conferred regularly with the various Consultative Groups established to assist it under the Australian Meat and Live-stock Corporation Act.

Livestock Producers’ Consultative Group (PCG) The members of this group at the end of June 1984 were:

Representatives from the Cattle Council of Australia W. T. H. Bodman (Chairman) L. D. Foster G. F. Heaslip R. J. Martin I. H. Park

W. J. Peart G. C. Porter I. M. Steele-Park Representatives from the Sheepmeat Council of Australia D. J. Blair P. B. Blandford T. R. C. Cropper K.R. James

Meat Exporter and Abattoir Operators Consultative Group (MEACG) The members of MEACG at the end of June 1984 were: Representatives from the Australian Meat Exporters’ Federal Council K. D. Bowtell

D. A. Culley M. F. Holman R. E. Phillips K. J. Smeltzer

Representative from the Council of Public Abattoir Authorities J. W. E. Tidswell Representative from the Australian Meatworks’ Federal Council K. F. Gooley Jj

Representative from the Meat and Allied Trades Federation of Australia J. H. Medway MEACG, together with PCG, met jointly with the Corporation on seven occasions during the year.

. Π

Livestock Exporters Consultative Group (LECG) The members of LECG at the end of June 1984 were:

Representatives from the Australian Livestock Exporters’ Association P. A. King (Chairman) B. Bloch J. R. Francis

D. C. Mactaggart I. D. Phillips R. K. Trivett

LECG met with the Corporation on three occasions during the year.

Page 6

Advisory Committee to AMLC for Market Development and Promotion o f Sheepmeats

Membership of the Committee at the end of June 1984:

Representatives from AM LC T. H. Bryant (Chairman) J. Ware

Representatives from the Sheepmeat Council of Australia T. R. C. Cropper K. R. James

Representative from the National Farmers’ Federation M. A. J. Cameron

Representative from the Australian Meat Exporters’ Federal Council K. D. Bowtell

Representative from the Australian Council of Trade Unions J. O ’Toole

Representative from the Department of Trade D. K. Kenyon

Representative from the Department of Primary Industry J. Jenkins

The Committee met on eight occasions during the year. A detailed report on the activities of the Committee is contained separately in this Annual Report.

Australian Lamb Prom otion Committee

The members of the committee at the end of June 1984 were:

Representative from AM LC J. B. Newman (Chairman)

Representative from the Sheepmeat Council of Australia G. S. Ashton-Jones

Representative from the Livestock and Grain Producers’ Association of New South Wales D. S. Kingham

Representative of the Victorian Farmers’ & Graziers’ Association J. Mewton

Representative of the United Farmers & Stockowners of South Australia G. Martin

Representative of the Meat and Allied Trades Federation of Australia H. A. James

Representative of the Australian Retailers’ Association J. O’Shea

Representative of the Australian Meat Exporters’ Federal Council P. Greenham

The committee’s inaugural meeting was held on 30 March 1984. It met on a further three occasions during the year.

Page 7

M EAT&LJVtCTOCK CORPORATION

State of

the Industry

State of the industry Livestock numbers Preliminary estimates by the Australian Bureau of Statistics put Australian cattle numbers on 31 March 1984, at 22.2 million head, 1.4 per cent below the level of the previous year. The decline is mainly attributed to reduced numbers in Queensland, Australia’s largest cattle producing state. Producers in other major cattle states responded to favourable seasonal conditions with increased retention of female breeding cattle and herd rebuilding. In contrast, the slaughter of female cattle as a proportion of total cattle in Queensland continued to rise. Cattle numbers increased in NSW (2.9 per cent), Victoria (1.8 per cent), South Australia (5.4 per cent) and the Northern Territory (0.5 per cent). Declines were recorded in Queensland (5.4 per cent), Western Australia

(2.7 per cent) and Tasmania (2.8 per cent). The breeding base of the Australian herd expanded slightly over the year though the potential for significant increases in cattle numbers in the following year was moderated by a decrease in replacement calves. The number of beef cows and heifers one year and over rose by 1.7 per cent, but beef heifer calves under one year decreased by

3.8 per cent. Preliminary estimates of sheep and lamb numbers at 31 March 1984 were 140.6 million head, 5.6 per cent above the level of the previous year. The increase reflected flock

rebuilding by producers in response to favourable seasonal conditions as well as improved lambing rates. Increased numbers

were recorded in all states: NSW (4.8 per cent), Vic (11.1 per cent), Qld (8.9 per cent), SA (7.8 per cent), WA (0.2 per cent) and Tas (5.4 per cent). In the Northern Territory

numbers were unchanged. Included in the Australian total was a 2.1 per cent increase in rams, a 6.4 per cent increase in ewes, a 7.1 per cent increase in wethers and a 2.5 per cent increase in lambs and hoggets.

Pig numbers in Australia fell by 2.2 per cent to 2.4 million head as the result of increased slaughterings.

Meat production Total red meat production in Australia during 1983-84 was 1.987 million tonnes carcase weight, 14.1 per cent below the level of the

previous year. Beef and mutton production were down substantially. Adult cattle slaughterings in 1983-84 totalled 5.79 million head and calf slaughterings 1.24

million head, a decrease of 21.6 per cent and 28.6 per cent respectively from the previous year. Total beef and veal production declined by 15.8 per cent to 1.3 million tonnes carcase

weight. The decline in beef and veal production was tempered by an increase in the average carcase weight of adult cattle. Total sheep slaughterings were 7.69 million

head, 41.4 per cent down. Mutton production declined by 37.9 per cent to 155 000 tonnes carcase weight. Lamb slaughterings totalled 16.16 million

head, 4.2 per cent down. Despite the decline in slaughterings, lamb production, at 281 000 tonnes carcase weight, increased marginally because of a heavier average carcase weight. Total pig slaughterings rose by 4.7 per cent to 4.36 million head. Pigmeat production increased

by 4.9 per cent to 251 000 tonnes carcase weight.

Livestock prices Annual average 1983-84 saleyard prices for cattle, sheep and lambs generally increased over the previous year’s level while saleyard prices of pigs decreased. Reduced marketings of cattle and strong competitive demand between graziers and

canle fatteners boosted saleyard prices. Downward pressure on saleyard prices in the first half of 1984 from weak export demand was cushioned by a strengthening of the US dollar relative to the Australian dollar. As an indication of prices for export quality cattle in

1983-84, the annual average price of steers (251-300 kg) at Cannon Hill increased by 13.1 per cent to 152.4c per kg estimated dressed weight, and the price of cows (201-250 kg) increased by 18.8 per cent to 138.7C per kg. The price of cattle for the domestic market, as indicated by the price of young cattle (161­ 200 kg) at Homebush, increased by 19.9 per cent to 174.4c per kg. Reduced sheep numbers, retention of stock for breeding and weak export demand, combined to cut sheep and lamb marketings during the year. Reduced supplies and strong restocking and trade demand pushed prices well above the drought-affected depressed levels of the previous year. For example, the

1983-84 average price of lamb (16 kg and under) at Newmarket was 115.5c per kg estimated dressed weight, a 5.1 per cent increase. The average price of wethers (22 kg and under) at Midland was 84.5c per kg, up

16.4 per cent. Pig prices eased in response to increased supplies. Pig prices (60-73 kg) at Newmarket averaged 161.4c per kg estimated dressed weight, down 13.4 per cent.

Page 9

Meat consumption Total red meat consumption at 1.167 million tonnes carcase weight, was down six per cent. There was a 13.3 per cent decline in beef and veal consumption to 604 000 tonnes and a 4.5 per cent decline in mutton consumption to 63 000 tonnes. Lamb consumption was unchanged at 247 000 tonnes while pigmeat consumption increased by 9.1 per cent to 253 000 tonnes. Per capita consumption of total red meat (in rounded figures) was 76 kg, a decrease of 5 kg from the previous year. Included in the total was beef and veal consumption at 39 kg (down 7 kg), mutton and lamb consumption unchanged at 4 kg and 16 kg respectively and pigmeat consumption at 16 kg (up 1 kg).

Meat exports Meat exports in 1983-84 totalled 571 216 tonnes shipped weight, 28.3 per cent below the 1982-83 level. The fall reflected both reduced supplies and weak export demand for beef and sheepmeats.

Beef and veal exports. totalled 439 251 tonnes, 24.1 per cent down. Beef and veal exports to major markets in 1983-84 and relative movements on the previous year’s exports were: US 239 415 tonnes (-23.9 per cent),

Japan (excluding Okinawa) 87 476 tonnes (+0.3 per cent) and Republic of Korea 37 065 tonnes (-54.7 per cent). These countries accounted for 83 per cent of the total volume of beef exported. Australian buffalo meat exports totalled 2358 tonnes shipped weight, a fall of 20.1 per cent. Increased exports to West Germany, which accounted for 81 per cent of the total, were offset by lower sales to the other European countries and Asia. Australian total mutton exports (including hogget) declined by 53.6 per cent to 57 606 tonnes shipped weight. Exports to Japan, Australia’s major mutton market, declined by 45.9 per cent to 23 881 tonnes. Iran and the

USSR, which in 1982-83 imported 25 486 tonnes and 5124 tonnes of mutton respectively, made no purchases during the year. Other significant markets for mutton over the year were the Middle East (excluding

Iran) which accounted for 14 907 tonnes and Greece, 1243 tonnes. Australian lamb exports totalled 31 710 tonnes shipped weight, 6.2 per cent down. Exports to the Middle East, which totalled 16 157 tonnes, down almost 30 per cent, represented 51 per cent of the total lamb exported. Other countries importing significant quantities of

PER CAPITA DOMESTIC DISAPPEARANCE OF MEAT

1982/83 1983/84

BEEF AND VEAL (46)

M UTTON (4)

LAMB (16)

PIG M EA T (15)

Page 10

Australian lamb were Japan, the USA, the Caribbean and Papua New Guinea. Australian goatmeat exports totalled 3433 tonnes shipped weight, a drop of 31.3 per cent. Exports to the Caribbean and Taiwan, together accounting for 73 per cent of the total, declined by 4.9 per cent and 49.1 per cent respectively. Australian pigmeat exports were 1347 tonnes shipped weight, an increase of 2.4 per cent. Major destinations for pigmeat were Papua New Guinea and New Zealand, accounting for 61 per cent of total exports. Australian fancy meats exports totalled 35 511 tonnes shipped weight, down 29.3 per cent. Exports to Australia’s major markets for fancy meats, the EEC and Asia, declined by 50.4 per cent and 11.9 per cent respectively.

Controls on Australian meat exports Since 1 November 1968 the Australian Meat Board (AMB) and the AMEC have controlled, when required, the export of beef, veal, buffalo, mutton and goat meat to the USA. The controls have been primarily aimed at keeping the volume of Australian exports within the voluntary restraint levels negotiated with the US Government. Controls were not operated in 1980 or 1981 but were introduced on 16 September 1982 and again on

10 August 1983 to regulate total shipments to the levels negotiated for 1982 and 1983. Until 1977 controls were applied exclusively to the US market. On 14 January 1977 the AMB implemented a control scheme for beef and veal exports to Canada following the

imposition of import controls by that country. Controls on exports to Canada were last operated by the AMEC in 1980 but were suspended in May of that year when shipments were not expected to reach restraint levels. A control scheme for the export of beef and veal to Japan operated from 2 November

1977 to 31 May 1979. The scheme was aimed at discouraging Australian exporters from bidding for Japanese contracts at unnecessarily low prices in the situation of over-supply of cattle which prevailed over much of that period. The Corporation subsequently decided

that satisfactory prices could be achieved by market forces alone and the Japanese control scheme was abandoned from 1 June 1979. As a result of Australia’s M TN settlement with the European Economic Community

(EEC) a control scheme was introduced on March 4 1980 to regulate exports of high quality beef to the EEC in accordance with

the new levy-free quota. Buffalo meat shipments against levy-free quota were regulated from the same date. On 7 October 1980 the AMLC introduced a control scheme to regulate shipments of

sheepmeat and goatmeat due to enter the EEC on and after 20 October 1980. These controls became necessary following the introduction of voluntary restraint agreements

on imports of these meats by the EEC. On 4 March 1981 the Corporation advised exporters that a “sensitive market” agreement

had been reached by the Australian Government with France which would limit the shipments of sheepmeat and goatmeat to 327 tonnes in 1981. This quantity had already

been shipped when the agreement was reached. On 24 March 1982, the AMLC introduced a separate control scheme to regulate shipments

of sheepmeat and goatmeat to France. Although such shipments to France were part of the voluntary restraint agreement covering sheepmeat and goatmeat shipments to the

EEC, a separate control scheme was necessary following additional restrictions being imposed by France on sheepmeat imports from

Australia. These controls on sheepmeat and goatmeat to the EEC have continued in force. Details of the control schemes which operated

during 1983-84 follow.

USA On 10 August 1983, after protracted negotiations with US authorities, the Deputy Prime Minister and Minister for Trade agreed

to limit beef exports to the USA to 272 156 tonnes for 1983. In separate negotiations, other major supplying countries agreed to similar voluntary restraint arrangements to the USA to avoid the imposition of quotas. On 12 August 1983 the Minister for Primary Industry, pursuant to sub-section 11(3) of the Act, directed the Corporation to limit Australia’s shipments to the USA for 1983 entry to the level agreed upon and the

Corporation implemented a control scheme effective from 16 August 1983. For the purposes of section 49(2) of the Act, the terms of that direction are: “I, John Charles

Kerin, Minister of State for Primary Industry acting pursuant to sub-section 11(3) of the Australian Meat and Live-Stock Corporation Act 1977, hereby direct the Australian Meat and Live-Stock Corporation to exercise the powers conferred to it in relation to licensees by sub-section (1) of section 11 of the said

Act so as to subject licences granted by the Corporation to such conditions, imposing requirements or giving directions as will

Page 11

Country of destination

United Kingdom France Germany Italy Benelux Denmark Greece Austria Sweden

Norway Poland Yugoslavia Romania

Bulgaria Malta Other Europe USSR USA-EC USA-WC Hawaii Canada-EC Canada-WC Caribbean

Mexico Venezuela Other C&S America Japan (exc. Okinawa)

Okinawa Hong Kong Malaysia Singapore

Philippines Taiwan Korea, Republic of Other Asia

Iran Kuwait Oman Qatar Saudi Arabia Abu Dhabi

Dubai Bahrain Iraq Syria Jordan

Lebanon Egypt Israel South Africa Other Africa Mauritius PNG Pacific Islands New Zealand Ship stores All other countries

FROZEN AND

Chilled beef Young

(included in Total sheep and

beef and veal) beef and veal Buffalo Mutton hociget

1983 1984 1983 1984 1983 1984 1983 1984 1983 1984

1034 1467 5642 3890 2 — 2488 108 — —

— — — — 596 130 — —

16 21 49 1598 1902 2270 457 — —

42 — — — — — — —

1 1 315 126 — — 702 265 — —

___ 311 116 — — 50 — — —

— — 141 — 7838 1243 — —

44 15 — — — — — —

61 48 816 495 536 — — 9 — —

317 63

— —

115 131

— —

44

— — —

29 70

— —

7 4 166 117 — — — — —

1 — — — 5124 — — —

51 251956 185480 — — 452 257 — —

117 5 60881 52086 — — — 15 — —

1963 1849 — — — — — —

12544 14712 — — 1171 145 — —

2453 1641 — — 518 49 — —

— 16 7479 7868 — — 236 233

I T " 1551 — — — — — —

— 8 13 — — — — —

34993 37569 87212 87476 — — 44168 23881 —

11 — 2587 2058 — — — — —

169 172 4868 1760 — — 136 82 — —

114 162 4115 3942 — — 2952 4387 — —

314 284 8319 5729 — 4996 4386 — —

— 2618 1954 93 — 5 — — —

___ — 18334 19640 582 456 3249 2975 — —

— — 81775 37065 — — 4514 1740 — —

119 102 317 288 — — 1 12 — —

— — — 25486 — — —

2 16 1141 357 — — 1067 1098 — —

26 21 142 143 — — 3489 3948 — —

17 9 165 72 — — 322 195 — —

621 409 12868 4634 — — 5921 5989 28 78

68 1 299 62 — — 514 603 — 7

136 3 2312 970 — — 3530 2590 16 2

195 112 481 203 — — 539 372 —

— — — — — — — — —

— — — — — — — — —

2 — 2 32 — — — 18 — —

___ — — — — 114 — — —

_ 11 — — —

38 — — — 36 7 — —

— ___ 4 — — — — 14 — —

— — 89 3 — — 8 1 — —

2 3 306 101 — — 1051 1115 — —

19 14 2436 2359 — — 214 841 13 4

133 171 1275 1126 — — 37 84 —

— — — — — — — — —

19 9 435 732 — — 48 55 — —

1 — 103 22 — — 27 8 ——

38232 40613 578793 439251 2951 2358 124027 57515 59 91 TOTAL ALL COUNTRIES Miscellaneous meat includes such items as corned, cooked, boiled or salted meat, bacon, ham and other smallgoods. tlncludes meat exported by aircraft 13743 tonnes 1983 and 12674 tonnes 1984.

Components may not add to totals due to roundings Source: AMLC Statistics

Page 12

1984_____ (tonnes shipped weight)

CHILLED MEATS

Miscel-

Canned laneous*

Lamb Goat Pigmeat Fancy meat Total t meat meat*

1983 1984 1983 1984 1983 1984 1983 1984 1983 1984 1984 1983 1984 1983

409 727 — — — — 8800 5075 17341 9801 3997 2018 45 3

105 97 — — — — 5489 2858 6189 3086 — — —

119 133 — — — — 46 105 4055 2645 — — — 1

18 17 — — — — 274 153 334 170 — — — —

51 435 — — — — 3321 836 4389 1661 — — — —

156 124 — — — — 27 — 544 240 — — 4 —

723 23 — — — — 364 68 9066 1334 — — — —

120 26 — — — — 27 7 191 48 — — — —

— — — — — — 184 104 1535 608 — — — —

55 49

1

— — — —

76 5 562

1

248

1

— —

1

91 134

— — — —

27 58 191 261 5

— — —

415 1

736

724 — — — — 283 371 865

5126

253698

1212 2 — — 1

946 7 205 113 342 433 187229 1 139 333

577 744 — — 14 32 106 351 61578 53228 14 15 418 336

— 51 — — — — — — 1964 1900 — 13 — —

134 191 78 5 — — 432 295 14360 15349 1027 845 245 28

175 159 27 — — — — — 3174 1848 372 452 — —

1216 1188 2023 1924 — —

534 302 11488

1551 8

143510

11516 7 9

- -

3358 6031 — —

679 179 8092 6905

13

124472 57 50 5429 6583

— — 67 165 13 — 33 55 2701 2279 700 391 — —

158 306 22 14 1 7 3661 3358 8845 5527 14 4 94 101

199 228 537 367 1 5 2571 3821 10375 12749 42 38 36 71

264 160 603 191 25 31 4559 3129 18767 13626 128 73 142 180

3 2 — — — — 725 296 3445 2251 145 70 — —

8 2 1122 571 — — 341 134 23637 23779 — — — 1

11 11 — — — 1 195 73 86496 38890 5 — — —

31 45 — — 36 14 64 52 449 411 94 43 30 22

— — — — — — — — 25486 — — — — —

619 682 — — — — 153 132 2980 2269 19 20 — 19

343 275 — — — — 70 29 4044 4395 20 — 8 6

46 91 — — — — 69 25 602 384 — — — —

3020 2504 — — — — 5358 3110 27196 16314 26 83 161 74

5216 4817 — — — — 127 86 6156 5575 — — — —

8715 7211 — — 2 — 815 512 15390 11285 3 4 19 9

105 82 — — 42 30 175 187 1341 875 10 2 40 17

2759 — — — — — — — 2759 — — — — —

1100 — — — — — — — 1100 — — — — —

529 — — — — — 31 147 561 197 — — — 7

3 — — — — — 40 — 158 — — 210 — —

2 — — — — — 233 — 246 — — — — —

605 495 — — — — 35 10 714 512 — — — —

— 3 — — — — 77 30 81 46 16 — — —

43 23 2 — — — 42 95 185 122 — — — —

205 243 81 37 2 1 1645 1302 3291 2800 108 87 11 18

848 1684 3 — 246 354 498 474 4258 5716 8710 8202 853 820

325 442 76 28 48 106 38 44 1800 1831 1578 1515 97 71

_ _ — 474 — — — 474 93 125 — —

100 521 — — — — 43 318 625 1626 2 2 4 1

94 83 345 130 1 — 220 167 789 412 7 22 2 1

33813 31710 4994 3433 1315 1347 50243 35511 796195 571216 17200 14293 7780 8705

Page 13

ensure that the quantity of beef, veal, mutton and goatmeat exported from Australia, or withdrawn from warehouse, for entry into the United States of America in 1983 will not exceed the level of 600 million pounds.”

Quota entitlement of 40 000 tonnes was allocated among eligible exporters in the proportion of each exporter’s 1982 beef, veal and buffalo performance to all destinations

(boneless equivalent weight) plus mutton and goatmeat to the USA (boneless equivalent) earned between 1 November 1981 and 31 October 1982. On 18 October 1983 a further release of 1646 tonnes of quota entitiement was made available to eligible exporters on the same basis.

On 1 September 1983 the Corporation accepted approval applications for shipments into bond for 1984 entry from exporters who did not hold or had exhausted their 1983 entitlement. Exporters who received entitlement from the 1646 tonnes released on

18 October 1983 and who had shipped meat

into bond against the 1984 US quota were allowed to convert the shipments for 1983 entry up to the level of their quota entitlement. On 5 December 1983 the Corporation removed the need for approval to ship 1984 quota meat to the USA.

European Economic Community On 30 September 1983 the AMLC cancelled all 1983 entitlement to ship high quality beef to the EEC remaining in exporters’ accounts. Exporters were subsequently allowed to ship without restraint although AMLC approval continued to be required to ensure that exports did not exceed the quota limit. On 2 November 1983, the AMLC made an interim release of 2000 tonnes of 1984 high quality beef entitlement to the EEC. The allocation was made to all exporters on the basis of their beef and veal boneless equivalent export performance to all destinations from

1 November 1982 to 30 September 1983.

AUSTRALIAN MEAT EXPORTS

BY VALUE — $A MILLION FAS

1982/83: $1628.7

-------- BEEF AND VEAL $1289.0

M UTTON $167.1

LAMB $61.1

G O A T $7.9

-------- PIGM EA T $5.4

ιιιιιιΓίΤΠΏ

FANCY MEAT $60.3

-------- CA NN ED $37.8

1983/84: $1351.0

--------- BEEF AND VEAL $1120.9

MUTTON $84.1

LAMB $53.3

— GOAT $5.6

----------PIGM EAT $5.9

FANCY MEAT $46.1

--------- CANNED $35.1

Source: Australian Bureau of Statistics

Page 14

Exporters receiving less than one tonne of entitlement were excluded. On 12 December 1983, the AMLC made a full release of 5000 tonnes of 1984 high quality beef to the EEC. This replaced and superseded the interim release made on 2 November 1983. The full release allocation was made to all exporters on the basis of their beef and veal boneless equivalent export performance to all

destinations in the preceding export performance year (1 November 1982 to 31 October 1983).

Buffalo On 30 September 1983, the AMLC introduced a scheme to control buffalo exports to the EEC in 1984. Under this, the AMLC approved shipments without entitlement up to the limit of 2250 tonnes in order of receipt of applications from exporters.

Sheepmeat and goatmeat Shipments of sheepmeat and goatmeat to the EEC during 1983 were permitted against approvals. Under EEC regulations, sheepmeat

and goatmeat were allowed in up to 31 March 1984 subject to the expiry date on the export certificate. On 8 December 1983, a new scheme was introduced by the Corporation to control shipments of sheepmeat and goatmeat to the

EEC against the 1984 quota. This required exporters to have entitlement to cover each shipment. On 9 December 1983, a release of 17 500 tonnes of entitlement was made to

exporters. The release was based on eligible exporters’ individual sheepmeat and goatmeat carcase weight equivalent exports to the EEC during the three years ended 31 October 1984.

On 3 January 1984, following the French Government agreement to allow 165 tonnes of sheepmeat/goatmeat imports from Australia in the first quarter of 1984, the AMLC issued approvals to ship on a first-come first-served basis, up to the limit of 165 tonnes. Approvals were granted against the general EEC entitlement allocated to licensees. On 9 May

1984, a further 335 tonnes of French sheepmeat and goatmeat was approved.

AUSTRALIAN MEAT PRODUCTION 1983/84

THOUSAND TONNES CARCASE WEIGHT*

Source: Australian Bureau of Statistics * Totals may not add due to rounding

Page 15

Z X

AUSTRALIAN MEAT &. LIVESTOCK CORPORATION

\ ___________________ /

Division of

Publicity Services

Publicity Division The biggest promotion of the year was the Beaut Butcher Competition, part of National Meat Week. It was a nation-wide contest that drew more than 300 000 entries. Winning butchers came from each state and the

Northern Territory and an over-all winner was chosen from this group. He was Mr Denis Kelly, of Kenmore, Queensland. He was presented with a gold cleaver by the

Minister for Primary Industry, M r John Kerin, in Canberra. The state winners each received a silver cleaver in a series of ceremonies in the various capital cities.

The success of the promotion was seen in the involvement of customers as well as butchers — the customers were asked to vote for their favourite butcher and say why they voted.

There were 14 double holidays as prizes — one each to the winning state butchers and one to a customer of each of the winners. The competition was run in conjunction with

MATFA and Thai Airways International was a generous supporter of the competition. Despite its success the competition was discontinued because of cost. MATFA and a number of supermarket chains were approached to share the cost of a 1984 contest but the approach was not fruitful.

One of the most successful advertising campaigns was put together in a matter of days to solve a crisis in the lamb industry — a glut of spring lamb. Lambslide was a retail

campaign seen on TV right across the country and designed to move product quickly with a direct appeal to consumers to stock their freezers with new season lamb. There were discernible results immediately, something

that cannot always be said in the advertising industry. The campaign, which was produced internally by the Publicity and Promotions Division, featured actor Ray Meagher and a

number of MATFA butchers. Cookery consultant Tess Mallos wrote a series of long-running newspaper display advertisements under the heading Meat Brief.

These appeared in the major metropolitan newspapers in all capitals and key provincial cities. The theme was basically meat as a part of a healthy nutritious diet. The campaign

drew heavy coupon response from readers.

Education programme The division’s education programme continued but on a reduced scale because the entire project was being rewritten to bring it

into line with school curricula and other

teaching establishment requirements. The audio-visual and display section produced work for industry education including production of several TV tapes. One was of boneless lamb cuts made on behalf of the

Sheepmeats Advisory Committee. Another was on the muscle structure of a beef carcase. The section also produced two tapes on muscle structure and cutting lines of a beef

forequarter and a beef hindquarter respectively. Many duplicates were made of existing tapes and sent to such bodies as the Department of

Primary Industry, state Departments of Agriculture, industry groups, colleges of advanced education, MATFA, as well as to many centres overseas.

Display module An exciting innovation this year was the arrival of display modules, easily assembled panels that can be transported and put up easily, thus allowing the AMLC to have a presence at shows and field days other than the established capital city “royals”. The modules were used at the Melbourne, Adelaide, Hobart and Sydney shows — and will be used in these again — but they also travelled to such places as Perth, for the Veterinarians’ Congress; the Orange Field

Day; Brisbane, for the Rhythm of Life Exhibition; Lockington, Vic, and north to Rockhampton and Mackay. In Sydney, the Meat Hall demonstration auditorium at the Royal Agricultural

Showground, was extensively renovated to allow for industry information to be disseminated and for cookery demonstrations by Tess Mallos direct to the public.

Publishing Six new Meat Masterpiece recipe booklets were published in Better Homes and Gardens, with several thousand run-offs printed for

more general distribution. Titles were: Budget Beef; Better Lamb; Meat for Good Health; The Entertainers; Little Trimmers, and The Barbecue Book. Another three booklets,

Versatile Veal, Brilliant Beef and The Inside Story, were similarly published (with run-ons) in Gourmet Magazine. All the recipes were put together by Tess Mallos.

Overseas promotions AMLC participation in overseas promotions, trade fairs and exhibitions began this year with a stand at ANUGA World Food Fair, in Cologne, in October 1983. This is the biggest such fair in the world and draws buyers from

Page 17

all over the world, not just the EEC countries. There were five meat stands in the Australian exhibition — the AMLC had one and there were four Australian exporters represented. Product on show included a range of chilled and frozen beef, lamb and mutton, goatmeat, offals and buffalo. The AMLC organised the meat segment which was part of a larger exhibit under the auspices of the Department of Trade.

In February the AMLC organised an industry stand at MEFEX, the Middle East Food and Equipment Exhibition, in Bahrain. This exhibition attracts customers from the Gulf countries. Seven exporters joined the

Corporation showing product or promoting services. The AMLC staged cutting demonstrations and provided cooked samples for visitors.

The AMLC represented the Australian meat

industry at the Australian Trade Display at A1 Khobar, Saudi Arabia, in March. On show were chilled lamb and beef, frozen mutton

and offals. Samples prepared by a hotel chef were provided for trade visitors. March also saw the AMLC exhibiting at Foodex, Tokyo, the largest show in Asia. On

the AMLC stand were beef, sheepmeats and offals, and samples were offered to trade visitors.

SaudiAgriculture was held in Riyadh from April 8-12. The AMLC has been at all three of these annual shows. At the first two live dairy cattle and breeding sheep were exhibited, but this time, for financial reasons, the AMLC provided an information stand. Later in April, the AMLC represented the entire Australian meat industry with a stand at the Australian Food Display in the Trade

Commissioner’s Showroom in the Australian

Mr Russell Gray, Director of Publicity, left, and Mr Mike Hayward, Manager! Economics and Statistics, discuss the exact wording of questions to be used

in the $75 000 nationwide consumer survey into attitudes to red meat and other foods. The survey was planned as an integral part of the AMLC’s

over-all promotion strategy.

Page 18

Embassy in Kuala Lumpur. Emphasis here was on halal slaughter with a selection of beef and mutton on display and barbecued meat

samples available for visitors. In Singapore, from 24-27 April, the AMLC organised an industry stand at Food and Hotel Asia. Four export companies took part and part of the stand included an entertainment area. Once again the AMLC put on cutting demonstrations and had barbecue samples cooked for visitors. An Australian Trade Display was held in Amman, Jordan, in late May, organised by the Department of Trade. The AMLC exhibit, the only meat stand at the Display, featured frozen sheepmeats, beef and offal.

Samples were on offer and the stand also showed video tapes on aspects of the Australian industry. AMLC officials attending held talks with government, army and meat trade representatives.

Final activity of the year was Korhotel, in Seoul, Korea, in June. The AMLC was involved as part of the Australian contingent representing the meat industry.

Public relations The Corporation maintains a reasonably high profile public relations function to disseminate information to industry and to print, radio and television media outlets throughout

Australia and abroad. The Corporation employs two experienced journalists as Manager and Assistant Manager, Public Relations, and retains consultative services to carry out this function.

An average of three media statements on matters of general public interest issue from the Corporation each week and are telexed to major metropolitan and country newspapers,

radio and television outlets in each state using the facilities of Sydney head office and state offices. More than 200 copies of each statement are

mailed to country newspapers throughout the Commonwealth. Copies are immediately made available to more than 80 media representatives in the Press Gallery of

Parliament House, Canberra. All in all, well over 500 media outlets and industry organisations are blanketed with AMLC statements and comment.

The AMLC employed M r Chris Le Gras as a consultant with expertise in radio. Through M r Le Gras the Corporation services the Macquarie and 2UE radio networks involving

access to 29 country radio stations with some 500 000 listeners — from grass roots to industry leaders — in Queensland, New

South Wales, Victoria and South Australia. Interviews with Corporation members and senior staff are regularly transmitted to the networks, as is a weekly economic report from the Economics Division.

Media conferences and coverage for specific promotional campaigns, such as National Meat Week and tours by visiting personalities, are arranged by publicity staff.

Speech notes are prepared for the Chairman and members of the Corporation, for senior staff and for state managers whenever they are invited to attend public functions. On occasion, notes are also provided for overseas

functions dealing with the meat and livestock industry. Public relations staff act as official spokesmen for the Corporation in responding round-the- clock to direct questioning from media,

industry and the public. This may take the form of radio interviews or statements to the press, or simply satisfying requests for information and assistance from private

groups and individuals.

Statements are regularly prepared for media overseas; e.g., in Japan, South East Asia, the United States and Europe. Visiting foreign journalists are also provided with information

and background on the Australian industry.

Apart from direct dealings with the media, the public relations staff write material to be used in the educational films produced within the

division, and other words for other purposes, such as the messages to go on the display modules. This section also produces Meat Producer and Exporter, the flagship publication of the AMLC which goes around the world.

They have started work on a possible remake of the 20-minute film Big Beef Country, and have been involved in other film projects, notably a film on the Muslim community in

this country. This film is to be used as a low- key selling tool for sheepmeats to the Middle East (part of the film incorporates the message

that Australian halal meat is slaughtered to the strict requirements of Islamic law).

Staff from this section also helped a Japanese team of writers and cutters who toured NSW, Queensland and Victoria studying the

Australian meat industry with particular emphasis on lamb. This was to result in a lamb cutting book designed specifically for the Japanese market.

Part of the continuing public relations effort is the monthly recipe service which is sent free to more than 60 newspapers around the country.

Page 19

r Λ

AUSTRAUAN MEAT & LIVE-STOCK CORPORATION

\________ y

Division of

Economics and Finance

Division of Economics & Finance Economics The Economics Section of the AMLC has expanded to meet the requirements of industry and government, particularly the growing demand for economic analysis of issues facing the meat and livestock industries. In addition to policy analysis and advice, the section has three other major areas of responsibility: market intelligence, forecasts and projections and research projects. The section, with a staff of seven graduate economists, offers a broad range of analytical and research skills.

Policy analysis Policy issues are often referred to the Economics Section by Corporation members and senior management for research and analysis. The results of this work may provide an important input to policy formulation and,

in some instances, industry decision-making. The section aims to anticipate and monitor developments in the industry which may require analysis and plan its research programme accordingly.

In October, the section prepared a paper based on the AMLC submission to the Department of Industry and Commerce review of the Customs Tariff (Anti-Dumping) Act. The report reviewed existing legislation on dumping and suggested some changes. More efficient means of ameliorating adverse effects of dumping were considered and the paper concluded with AM LC recommendations to the Department. During 1983-84 the Economics Section prepared a paper on the potential threat of highly subsidised EEC beef exports into the Pacific Basin region. Markets of the Pacific

Basin have been developed and traditionally serviced by Australia. The research was carried out to inform industry of the seriousness of the threat and to assess strategies which may be used to restrain the

EEC from extending export subsidies to these markets. The information and policy suggestions contained in this report were very

well received by industry and Government.

Market intelligence The section is an important source of market information on the international and domestic meat market. Members of the section are responsible for the collection, storage and analysis of information relating to the demand and supply of meat and livestock. The

information resources generated by the section are readily available to the industry. The traditional avenue for the dissemination of information is through the Corporation’s

monthly publication In Brief, which has a circulation of more than 4000. It provides an up-to-date summary of the situation and outlook for the livestock and meat industries.

Featured regularly in In Brief are price and production data as well as analyses of economic trends and developments which shape our markets and supply situation. In Brief is free and recipients include producers, processors, exporters, government

departments and commercial organisations. An important development this year has been the extensive use of radio and electronic media in communicating information gathered by the

C oloration. The section now prepares a weekly radio comment for broadcast on two major networks servicing rural areas in eastern Australia. This AMLC Economic Update offers

a concise commentary on a current issue of interest to the industry. The Corporation has extended its market intelligence resources by providing regular information on two electronic publishing systems, a videotex facility and Agridata, a computer-generated text-only system. These

were developed during the year and were both due to be operating commercially from about mid-1984.

Reports prepared by the section for presentation at industry meetings and conferences are often made available for general distribution. A situation and outlook paper for the beef and sheepmeat industries is prepared by the Corporation for presentation at the annual meeting of four major meat producing nations, Argentina, Uruguay, New

Zealand and Australia. At the November 1983 meeting in Montevideo a wide range of issues relating to the international meat trade was discussed.

A Lamb Market Situation paper is submitted each year by the AMLC to the Lamb Promotion Co-ordination Committee (LPCC).

Members of the LPCC, comprising representatives from Australia, New Zealand and the USA, exchange information on lamb trade and promotion in the United States.

consumption and exports are revised twice yearly and published in In Brief. Forecasts of

Forecasts and projections Sheep and cattle industry projections compiled by the section are an important input into industry decision-making and policy formulation. Five-year projections of livestock numbers, sl3U2htenn2S, productioi

Page 21

beef and sheepmeat exports by destination are made one year ahead on the basis of projected supplies and developments in overseas markets.

The projections draw on the forecasts by state committees of monthly meat exports and quarterly slaughterings and production. These committees are made up of exporters, producer group representatives, officers from the State Departments of Agriculture and the Australian Bureau of Statistics, other industry representatives and Corporation officers.

Climatic variations make long-term forecasting hazardous and, for the purpose of the AMLC projections, are assumed to average out over a fixed time period — that is, over the period of the forecasts there will be a normal pattern of good, average and poor seasons. As a result, the projected statistics must be viewed as trend statistics. Extraordinarily good pastoral conditions followed the 1982-83 drought and this is believed to have precipitated a programme of herd and flock rebuilding over the past 12 months. Livestock numbers are expected to increase gradually in Australia over the next few years. Price expectations, however, will continue to dictate the level of optimism in the industry and therefore livestock turnoff rates and production levels.

Research projects The Economics Section also has a research programme with research projects often providing the basis for policy formulation or critical analysis of existing policy options.

The section has the benefit of an impressive range of computing facilities, including statistical and econometric techniques for use in economic research. A recent addition is a computer graphics facility which generates graphs and charts for AMLC publications.

Results of major research projects are published by the AMLC in the Economics Information Paper series. There are 14 papers currently available in this series. Copies are available on request from the AMLC. Papers published in the past 12 months include a comprehensive report of a study tour of the Middle East made by an officer of the Economics Section in January 1983. This report provides an outlook for exports to the Arabian Gulf and offers an in-depth consumer profile of selected Middle East countries. The report reveals that meat exports to the Gulf are expected to decline in the short term due largely to falls in oil revenue and declining expatriate population.

Live sheep for slaughter and lamb exports

provide the best prospects for increased sales to this region in the future. Another paper reports the results of research into the diaphragm beef trade with Japan and the implications for Australia of the increase in the US share of the Japanese diaphragm beef market since 1977. The study suggests strategies aimed at increasing access for Australian beef.

Trends in the World Meat Market 1975 to 1983 — Outlook for Australia to 1984 was published in April. This paper provides an information and data base on trends and production consumption and trade in the major meat producing countries since 1975. In April a paper entitled The Threat of EEC Beef Exports to Pacific Basin Markets was published as Economics Information Paper No. 14. The initiative in preparing this paper was taken by the AMLC to bring to the attention of industry and Government the seriousness of the possible penetration of the EEC into markets traditionally serviced by Australia. A study of the feasibility and potential benefits of the AMLC acting as a sole trader in particular markets is nearing completion.

Increasing interest in this method of trading already pursued by a number of other countries pointed to the need to examine potential benefits, if any, that would accrue to the Australian industry if the Corporation exercised its sole trading rights.

Research is continuing into the economics of the meat processing industry as well as into export control schemes for Australian meat.

Statistics Meat and livestock export statistics are drawn from returns submitted by exporters covering all shipments of meat from Australia. The AMLC Statistics Section provides a wide

range of statistics and reports for management, producers, processors, exporters, government departments, non-government bodies, the shipping industry, educational institutions and a wide range of individuals.

Statistical reports produced and published include: Meat exports by state of production and types of meat

Meat exports by destination and types of meat Meat exports by ports of loading Exports of fresh, chilled and frozen meat to major markets Forecasts of meat for export

Page 22

Stocks of meat in store Livestock exports by destination Average livestock prices in Australian capital cities

Livestock yardings in Australian capital cities

Export control The Export Control Section is responsible for implementing and administering the Corporation’s control schemes on shipments of meat to a country where restrictions have

been imposed on the quantity, standard, grade or class of meat that may be imported from S Australia. The section is also responsible for designing , export control schemes. Policy options for

these are considered, taking into account such factors as the extent of Corporation authority under the AMLC Act, administrative ';i feasibility and commercial practicality. These

are then submitted to the Corporation for decision. The section maintains close links with the

Commonwealth Departments of Trade and Primary Industry, as the negotiation of voluntary restraint agreements and other agreements limiting access to export markets is always on a govemment-to-govemment basis. The Corporation takes responsibility for administration and compliance with these

agreements. Officers of the section are responsible for maintaining detailed accounts of performance,

and entitlements for individual licensed exporters; for approving applications for shipments to controlled markets, and for monitoring the level of shipments to those

markets. Staffing levels fluctuate depending on the extent of controls operating, but generally comprise four permanent staff with temporary assistance in peak periods.

Markets which operated control schemes in 1983/84 were the EEC, for high quality beef, buffalo, sheepmeat and goatmeat shipments, and the USA for beef and mutton. There is also a sensitive market agreement with the

EEC limiting exports of sheepmeat and goatmeat to France.

Dr Nicola Blyth, a senior economist with the AMLC, at work on the report The Threat of EEC Beef Exports to Pacific Basin Markets, described as

perhaps the most important paper prepared by the AMLC in several years.

Page 23

Finance and administration Finance and accounting This section is responsible for the general accounting and financial administration of the

Corporation. Its functions include the management of the Corporation’s investment portfolio and the maintenance of a financial management information reporting system. Budgeting systems have been established for long- and short-term projections.

The section is responsible for external financial reporting, compilation of the annual financial statements and the management of funds derived from Government grants. Computerisation of the Corporation’s accounting system is continuing. The firm of Price Waterhouse was appointed on 1 July

1982, as the Corporation’s internal auditors for three years. Under the AMLC Act, the Commonwealth Auditor-General conducts a comprehensive annual external audit of the

Corporation’s accounting arrangements and reports to the Minister for Primary Industry.

Personnel This section produces a fortnightly computerised payroll, arranges travel and accommodation for members and staff proceeding on Corporation business in Australia and overseas, processes claims for travelling expenses and generally administers the staff terms and conditions of service, including recruitment, induction and transfers.

In most respects the staff of the Corporation are employed under Commonwealth Public Service terms and conditions of service. These include the benefits provided under the

Superannuation Act, the Long Service Leave (Commonwealth Employees) Act, the Compensation (Commonwealth Government Employees) Act, the Commonwealth Employees (Redeployment and Retirement) Act. Australia-based officers serving at overseas offices and locally-engaged employees at overseas offices (other than locally-engaged staff in London) are subject to terms and conditions based on Commonwealth Public

Service terms and conditions of employment. Locally-engaged staff at the Corporation’s London office are subject to the Australian High Commission Staff Rules.

Staff numbers At 30 June 1984, the Corporation employed 155 people world-wide. Although a comparatively small organisation, the

Corporation offers career opportunities for suitably-qualified persons. Under section 31(2) of the AMLC Act, the terms and conditions of service of its staff are as determined by the

Corporation and approved by the Minister. Under the Act, ex-employees of the Australian Meat Board are required to be employed by the Corporation on terms and conditions no less favourable than those applicable to them under the Board.

Administration — office services

This section is responsible for the procurement of goods and services, communications, office layouts and furniture and equipment, the management of freehold and leasehold premises, motor vehicles, in­ house printing, receipt and despatch of mail, a comprehensive range of insurance cover and archival matters generally.

In-house printing The in-house printing facilities include three printing machines and ancillary equipment on which are produced the Corporation publications Market Notes and In Brief as well as promotional materials and circulars and directions for distribution to the industry.

Freehold properties and leases The Corporation owns two residences in Sydney, one in London, and two in New York as well as the research properties Brian Pastures near Gayndah and Belmont near Rockhampton. The AMLC maintains five office leases in Australia and five office and seven apartment and residence leases overseas. The Corporation also leases property in Gosford for licence compliance training facilities and extra storage space in Sydney for promotional material.

Australian levies and charges on the slaughter and export of livestock Income of the AMLC is chiefly derived from a levy on the slaughter of livestock authorised under the Livestock Slaughter Levy Act 1964, and from a charge on the export of livestock authorised under the Livestock Export Charge Act 1977. The following tables show the operative and maximum rates of the livestock slaughter levy and livestock export charge effective as at 30 June 1984.

It should be noted that the Corporation’s income from the slaughter levy and the export

Page 24

charge represents a component only of the total levy and charge.

For convenience, the tables also include operative and maximum levies and charges imposed under the Meat Research Act 1960, the levy and charge for cattle disease eradication under the Livestock Slaughter

Levy Act 1964 and the Livestock Export Charge Act 1977 respectively, the export inspection charge payable under the Livestock Slaughter (Export Inspection Charge) Act

1979 and the inspection fees for export of live animals payable under the Quarantine (Animals) Regulations of the Quarantine Act 1908. Also included are the NSW domestic meat inspection fees payable to the

Commonwealth under the NSW Meat Industry Act 1978 and the NSW Commonwealth Powers (Meat Inspection) Act 1983. At a meeting chaired by the Minister of Primary Industry, early in the 1982/83 financial year, representatives of primary producers, processors, live sheep exporters and unions agreed to the establishment of a market development fund to promote Australia’s carcase sheepmeat trade, especially to Middle East markets. It was funded (as from 1 October 1982) by a two cents a head increase in the AMLC component of the

slaughter levy for sheep and lambs, and is matched on a dollar for dollar basis by the Commonwealth. The Export Inspection Charge payable under the Livestock Slaughter (Export Inspection

Charge) Act 1979 was increased from 1 October 1983 to expand the proportion of total inspection costs recovered from the industry.

In June 1984, however, the Minister for Primary Industry, taking into account a recommendation of the Interim Inspection Policy Council, announced a Government decision to reduce overall the industry’s contribution to the cost of meat inspection.

The reduction was to be effected in two stages. As a first step, the Export Inspection Charge would be reduced from $5.40 to $4.35 for cattle and proportioned for other species, as from 1 July 1984.

Inspection fees for the export of live animals, imposed from 1 July 1983, were increased substantially from 1 October 1983. Following representations by the AMRC and

industry groups to provide additional funds for the CSIRO industry service and investigation section at Cannon Hill, Brisbane, this component of the Livestock Slaughter Levy was increased to the maximum rates payable with effect from 1 April 1984.

L ivestock s la u g h te r levy a n d e x p o rt in sp ectio n c h a rg e a s at 30 J u n e 1984 (c e n ts p er h ead )

Maximum rates leviable Columns

(1 )-(3) only

Operative rates of levy and charge

For AMLC adminis­ tration (1)

Australian Meat Research Committee

National cattle disease eradi­

cation (c)

Export* inspec­ tion charge

(d)

Total

AMRC research (a) (2)

For CSIRO industry service & Investi­

gation section (b) (3)

Cattle and buffaloes 300 120 35 4 400 540 1099

Calves 105 43.2 9 1.4 133 180 366.6

Bobby calves 30 12 2.5 0.4 40 54 108.9

Sheep 30 14 3.33 0.4 — 54 71.73

Lambs 30 24 3.33 0.4 — 54 81.73

Goats 30 12 3.33 0.4 — 54 69.73

* NOTE: P a y a b le o n ly a t a b a tto ir s reg iste re d a s e x p o rt e s ta b lis h m e n ts . S e e follow ing for de ta ils of d o m e s tic m ea t in sp e c tio n fe e s in N ew S o u th W ales p a y a b le as from 1 Ju ly , 1983, to th e C o m m o n w e a lth .

Page 25

MAXIMUM RATES

(c e n ts p e r h e a d )

MAXIMUM RATES LEVIABLE AND CHARGEABLE FOR:—

Cattle, buffaloes Calves

Bobby calves

Sheep, lambs & goats

(a) Australian Meat Research Committee research 50 17.5 5 6.66

(b) CSIRO Industry Section 4 1.4 0.4 0.4

(c) National cattle disease eradication 500 167 50

(d) Export inspection charge 10.80 3.60 1.08 1.08

NOTE: “B o b b y ca lf" m e a n s a bovine anim al th e d r e s s e d w e ig h t o f th e c a rc a s e of w h ic h d o e s n o t e x c e e d 40 kilogram s.

"C alf" m e a n s a bovine anim al th e d r e s s e d w e ig h t of th e c a r c a s e of w h ich e x c e e d s 40 k ilo g ra m s b u t d o e s n o t e x c e e d 90 kilo g ram s.

The G overnm ents of the C om m onw ealth and of New S outh W ales have e n te re d into an a rrangem ent w hereby th e C om m onw ealth would b e responsible for all m ea t inspection in New S outh Wales as from 1 July, 1983. In o rd er to achieve this objective, the New S o u th W ales G overnm ent am ended th e legislation governing th e inspection of m eat for dom estic con su m p tio n in New S o u th W ales a nd a g re e d to provide for the collection of dom estic inspection fees by the C om m onw ealth, on a basis com parable to th e collection of th e C om m onw ealth Livestock S laughter Levy.

Nothing in this a rra n g e m e n t affects th e liability of export e s ta b lish m en ts to export inspection c h a rg e s payable u nder the Livestock S laughter (Export

* D o m estic m e a t in sp e c tio n fees — N ew S o u th W ales P ay ab le to th e C o m m o n w e a lth a s a t 30 J u n e 1984 A nim als sla u g h te re d in a n o n -e x p o rt a b a tto ir o r in a sla u g h te rh o u se only ---------------------------------------------------------------------------------------------- ---- --------------------- >.

Cattle, 70 kilograms and over dressed weight $2.20 per head

Calves, under 70 kilograms dressed weight $1.10 per head

Sheep, lambs and goats $0.40 per head

* New S o u th W ales M eat In d u stry A ct 1978, a n d N ew S o u th W ales C o m m o n w e a lth P o w e rs (M eat In sp e c tio n ) Act, 1983.

L ivestock e x p o rt c h a rg e a s a t 30 J u n e 1984 (c e n ts p e r h e a d )

Maximum rates leviable columns

(1)-(2) only

Operative rates of export charge

for AMLC adminis­ tration (D

Australian Meat research committee

(a) (2)

National cattle disease eradication

(b) Total

Cattle and buffaloes 300 120 35 400 555

Sheep, lambs and goats 30 12 3.33 — 15.33

(a) T h e m axim um rate s c h a rg e a b le for AMRC rese a rch a re th e s a m e a s for th e Livestock S la u g h te r Levy. (b) M axim um is $5.00 p e r head.

N ot included in th e a bove table are details of th e im position of a fee o n th e in sp e c tio n of live cattle, buffaloes, s h e e p a nd g o a ts for e x p o rt as from 1 July, 1983. T h e D e partm ent of Prim ary Industry a d v ises th a t th e s e fe e s a re in line with th e c o n c e p t of recovering from th e m ajor b eneficiaries a re a s o n a b le prop o rtio n of th e c o st of providing ex p o rt in sp e c tio n se rv ic es. T h e fee s a re im p o sed u n d e r the Q u a ra n tin e (Animals) R e gulations (Q u a ran tin e A ct 1908) a n d a re as follows:— ~

In spection fe e s — E x p o rt of live an im als a s a t 30 J u n e 1984

Consignment

Up to animals

Fee per animal

Fee per animal in excess of that number Minimum

fee

Cattle & buffaloes slaughter 100 $ 3.60 $0.90 $90

feeder 50 $ 7.20 $0.90 $90

breeding 50 $10.80 $1.80 $90

Sheep and goats slaughter 20000 $ 0.09 $0.04 $90

breeding 50 $ 9.00 $0.20 $90

Page 26

r \

AUSTRAUAN MEAT & LIVE-STOCK CORPORATION

x__________ y

Auditor General’s

Report

and

Financial Statement

of the AMLC

for the year ending

30 June 1984

Page 28

w -

COMMONWEALTH OF AUSTRALIA AUSTRALIAN AUDIT OFFICE

Cnr Moore and Rudd Streets, Canberra City, A.C.T. 2601

9 November 1984

The Honourable the Minister for Primary Industry Parliament House CANBERRA ACT 2600

Address correspondence to Auditor-General Box 707, G.P.O. Canberra 2601 Telegrams ‘Comaudit’ Telex 61653 Comaud Telephone 48 4711

Dear Sir

AUSTRALIAN MEAT AND LIVE-STOCK CORPORATION

Pursuant to sub-section 49(3) of the Australian Meat and Live-stock Corporation Act 1977, the Australian Meat and Live-stock Corporation has submitted for my report its financial statements for the year ended 30 June 1984. These comprise a Balance Sheet, Income and Expenditure Statement, Belmont-Brian Pastures Operating Account, Statement of Sources and Applications of Funds and accompanying

‘Notes to and forming part of the Financial Statements’.

The financial statements, which have been prepared having regard to the Statement of Accounting Policies outlined in Note 1, are in the form approved by the Minister for Finance under sub-section 49( 1) of the Act. They have been prepared in accordance with the ‘Guidelines for the Form and Standard of Financial Statements of Commonwealth Undertakings’ approved by the Minister for Finance. A copy of the financial statements and accompanying Notes is attached for your

information.

In accordance with sub-section 49(3) of the Act, I now report that the statements are in agreement with the accounts and records of the Corporation and, in my opinion —

(a) the statements are based on proper accounts and records

(b) the statements show fairly the financial transactions for the year ended 30 June 1984 and the state of the affairs of the Corporation as at that date, and

(c) the receipt, expenditure and investment of moneys, and the acquisition and disposal of assets, by the Corporation during the year have been in accordance with the Act.

Yours faithfully C. T. Monaghan First Assistant Auditor-General

Page 29

AUSTRALIAN MEAT AND LIVE-STOCK CO RPO RA TIO N BALANCE SH EET AS AT 30 JU N E 1984

Note 30 JUNE 1984 30 JUNE 1983

$ $ $ $

Accumulated fu n d s...................................... . 22 11,190,853 11,409,030

Reserves ...................................................... . 23 905,431 12,096,284 971,471 12,380,501,

12,096,284 12,380,501

Represented by:—

ASSETS

Fixed assets Land and improvements — at c o s t........... . 24 985,115 977,401

Buildings — at cost less depreciation . . . . . 25 410,027 429,488 t

Plant, equipment, furniture and vehicles — at cost less depreciation ................... . 26 898,734 2,293,876 739,508 2,146,397

Investments — at c o s t................................ . 27 839,496 840,496

Livestock — at estimated market value , . . . 28 888,593 981,836

Current assets Cash at bank and in hand.......................... . 29 242,802 94,136

Advances to state and overseas o ffic e s ... 364,766 179,380

Short-term d e p o s its .................................... . 30 8,163,118 7,700,891

Short-term investm ents.............................. . 31 1,000 558,558

Advances, deposits and prepayments . . . . . 32 151,718 142,193

Income accrued........................................... 1,242,004 1,208,447

Sundry debtors ........................................... . 33 279,752 10,445,160 195,911 10,079,516

TOTAL ASSETS 14,467,125 14,048,245

Less LIABILITIES Non current liabilities Non current provisions .............................. 34 1,206,404 1,020,015

Current liabilities Sundry c re d ito rs ......................................... 809,714 260,306

Current provisions....................................... 35 354,723 1,164,437 387,423 647,729

TOTAL LIABILITIES 2,370,841 1,667,744

NET ASSETS 12,096,284 12,380,501

In our opinion the Balance Sheet and associated Statements are drawn up so as to show fairly the results of operations for the year ended 30 June, 1984 and the state of the Corporation’s affairs as at that date.

R. AUSTEN, M. J. BLAMEY,

Chairman Member

I

I

Page 30

AUSTRALIAN MEAT AND LIVE-STOCK CO RPO RA TIO N INCOM E AND EXPENDITURE STATEM ENT FOR TH E YEAR ENDED 30 JU N E 1984

Note

INCOME Export charges...............................................

Livestock slaughter levie s............................ 2

Surplus (Deficiency) of Belmont-Brian Pastures............................

Administrative expenses recouped from Meat Research Trust A c c o u n t.................

Grants— Overseas trade publicity committee ..................... 3

— Export market development grants board.................................. 3

— National carcase classification scheme................... 4

— Sheep meat market development fu n d ......................... 5

— Quality assurance schem e.........

Investment in c o m e ........................................ 6

Other in c o m e ................................................. 7

EXPENDITURE Salaries — A u s tra lia ......................................

— Overseas...................................... 8

Administrative expenses — A u s tra lia ...................................... 9

— Overseas...................................... 10

Members of Corporation — salaries, fees and expenses ..................... 11

Consultative groups — fees and expenses......................................

Corporation advisers and sundry committees — fees and expenses Promotion and p u b lic ity .............................. 12

Research and technical services................. 13

Depreciation of fixed assets.........................

Transfer to provisions .................................. 14

OPERATING (DEFICIENCY) SURPLUS Transfers to reserves.................................... 15

Transfers from reserves................................ 16

NET (DEFICIENCY) SURPLUS transferred to accumulated fu n d s ...............

30 JUNE, 1984 30 JUNE, 1983

$ $ $ $

963,127 11,154,449

766,234 10,378,276

56,891 5,012

129,786 75,884

366,110 321,504

200,000 200,000

116,000 500,000

472,623

1,154,733

386,669 1,000,000 2,408,173

986,053 86,012

1,025,990 108,397

14,531,051 14,767,966

3,153,340 1,011,866 4,165,206 2,866,544 907,475 3,774,019

2,043,730 1,212,860 3,256,590 1,612,460 1,127,324 2,739,784

345,759 338,280

169,338 186,000

107,173 9,147

4,869,282 3,917,740

1,146,154 1,384,337

201,019 170,837

482,764 457,463

14,743,285 12,977,607

(212,234) 1,790,359

5,943 9,504

— 5,310

(218,177) 1,786,165

Page 31

AUSTRALIAN MEAT AND LIVE-STOCK C O R PO R A TIO N BELM ONT-BRIAN PA STU RES OPERA TIN G A C C O U N T FOR TH E YEAR ENDED 30 JU N E 1984

Note 30 JUNE 1984 30 JUNE 1983

$ $ $ $

INCOME Livestock sales............................................. 274,337 171,636

Miscellaneous in c o m e .................................. 17 31,975 28,501

306,312 200,137

EXPENDITURE D epreciation................................................. 58,421 59,062

Maintenance of equipm ent......................... 47,896 60,301

Property expenses ...................................... 121,844 121,100

Other expenses — 228,161 7,572 248,035

78,151 (47,898)

Livestock (Decrease) Increase................... . 18 (93,243) 379,135

OPERATING (DEFICIENCY) SURPLUS (15,092) 331,237

Transfer to Belmont-Brian Pastures reserve a cc o u n t........................................ . 19 5,113 9,924

Transfer from Belmont-Brian Pastures reserve a c c o u n t........................................ — (78,219)

Transfer to unrealised profit on livestock reserve a c c o u n t....................... . 20 37,197 394,520

Transfer from unrealised profit on livestock reserve a c c o u n t....................... . 21 114,293 71,983 — 326,225

BALANCE Transferred to income and expenditure statem ent..................... 56,891 5,012

Page 32

AUSTRALIAN MEAT AND LIVE-STOCK CO RPO RA TIO N STATEM ENT O F S O U R C E S AND A PPLICA TIO N S O F FUNDS FOR TH E YEAR ENDED 30 JU N E 1984

SOURCES OF FUNDS Operating (Deficiency) S u rp lu s .....................

Add adjustments for items not involving the outlay of funds in the current period: Depreciation ...............................................

Transfer to Belmont-Brian Pastures reserve account ......................................

Transfer to unrealised profit on livestock reserve account.......................

Assets written off on disposal...................

Increase in non-current liabilities ...........

Livestock decrease ....................................

Less transfer from unrealised profit on livestock reserve account..........................

Less transfer from Belmont-Brian Pastures reserve account ........................................

Decrease in investments ............................

Decrease in non-current assets.................

Decrease in working capital: Increase in current a s s e ts .......................

Less increase in current lia b ilitie s.........

APPLICATIONS OF FUNDS Increase in working capital: Increase in current a s s e ts ..................................

Less increase in current lia b ilitie s .....................

Land and improvements.........................................

Buildings ..................................................................

Plant and equipment, furniture and vehicles . . . . Livestock increase...................................................

JUNE 1984 JUNE 1983

$ $ $ $

(212,234) 1,790,359

259,440 229,899

5,113 9,924

37,197 51,873 186,389 93,243

394,520 15,473 127,223

421,021 2,567,398

114,293 —

— 306,728 78,219 2,489,179

1,000 558,558

7,572

365,644 516,708 151,064

_

458,792 3,055,309

7,714

451,078

2,396,649 69,097 2,327,552 18,563 38,648

291,411 379,135

458,792 3,055,309

Page 33

N O TES TO AND FORM ING PA RT O F THE FINANCIAL STATEM ENTS

1. STATEMENT OF ACCOUNTING POLICIES The Australian Meat and Live-stock Corporation is required by Section 38 of the Australian Meat and Live-stock Corporation Act 1977 to keep proper accounts and records of the transactions and affairs of the Corporation in accordance with accounting principles generally applied in commercial practice.

The following summary of the significant accounting policies is given in order to assist in understanding the figures presented in the accounts. Accounting policies adopted are consistent with the accounting standards issued by the Australian accounting bodies.

A c c o u n tin g p rin c ip le s — The accounts have been prepared in accordance with conventional historical cost principles and have not been adjusted to take account of either changes in general purchasing power or changes in specific prices except to the extent that livestock shown in the accounts is valued at estimated market value.

P e rio d o f a c c o u n ts — The accounting statements cover the period from 1 July 1983 to 30 June, 1984. The comparative figures cover the period from 1 July, 1982 to 30 June, 1983.

S o u rc e s a n d A p p lic a tio n s o f F u n d s S ta te m e n t — This statement is now incorporated in the Financial Statements. The 1982/83 Non-Current Provisions include a $29,364 Provision for Long Service Leave as an amount estimated to become payable in 1983/84. This amount is now included in Current Provisions in the 1982/83 comparative figures in this statement.

D e p re c ia tio n —- Depreciation is calculated so as to write off the book value of fixed assets, other than land, over their expected economic lives. Depreciation rates for buildings are based on the remaining useful life of each building.

E m p lo y e e s e n title m e n ts — Due allowance has been made in the accounts for benefits accruing to employees in respect of annual leave and long service leave. Annual leave and long service leave accruals are calculated on the entitlement due to employees at the end of the accounting period.

S u p e ra n n u a tio n p e n s io n in c re a s e s — Due allowance has been made in the accounts for the estimated liability of the Australian Meat and Live-stock Corporation to the Commonwealth by way of employer contributions for increased pension costs during the period 1973/84. The actual amount involved has not yet been determined. This provision makes due allowance for an estimated expected refund of employer contributions of staff superannuation arising from the 1972 actuarial assessment of the scheme. The liability is considered unlikely to be payable in the 1984/85 financial year.

B e lm o n t a n d B ria n P a s tu re s re s e a rc h s ta tio n s — In 1952 the Australian Meat Board purchased two properties in Queensland in order to initiate research into the cattle industry by the CSIRO and the Queensland Department of Primary Industries. The northern Queensland property (Belmont) is used primarily for cattle breeding research by the CSIRO and the other property in southern Queensland (Brian Pastures) is used for pasture research by the Queensland Department of Primary Industries. In managing the respective properties the CSIRO and the QDPI are solely responsible for expenditure in relation to experimental programmes and salaries of scientific, technical and general station staff. The Australian Meat Board provided the livestock for the properties and made a number of capital improvements. Under section 3(2) of the Australian Meat and Live-stock Corporation Act 1977 the Corporation acquired the assets and became responsible for the liabilities of the Australian Meat Board. Both properties are operated in accordance with a Memorandum of Agreement between the CSIRO, the Queensland Department of Primary Industries and the Australian Meat and Live­ stock Corporation. The memorandum provides for the establishment of a reserve account, a station fund, station trust fund and a station investment account for either property. A station fund is operated by the CSIRO in the case of the Belmont property and a station trust fund is operated by the Queensland Department of Primary Industries. Money in the Belmont station fund or Brian Pastures station trust fund may be used by “ Belmont” or “ Brian Pastures" respectively for the purchase of cattle, replacement of improvements, maintenance, council rates, purchase of equipment and payments to the Australian Meat and Live-stock Corporation. All revenue however obtained is paid in the case of “ Belmont” into the Belmont station fund and in the case of “ Brian Pastures” into the Brian Pastures station trust fund.

Page 34

The reserve account is a special reserve for use on either property and is made available only for expenditure approved by the three parties to the Agreement. It is augmented by 50% of the net proceeds of the sale of pure bred cattle from either property, funds in excess of those reasonably required to meet budgeted commitments on either property and interest on the

balance of the reserve account. The Belmont station investment account and the Brian Pastures investment account were established for the investment of surplus moneys arising from both properties. A reserve account is credited with interest at the three monthly interest bearing deposit rate which is

based on the aggregate balance of the investment account. The unrealised profit on live-stock reserve account was established to prevent distortion in the Belmont-Brian Pastures operating account by the inclusion of unrealised profits arising from the valuation of livestock. Transfers to and from the reserve reflect adjustments in line with the movement of livestock valuation. Since the original establishment of the properties the purchase of additional land and capital improvements have been effected by the use of the station funds, the Belmont station

investment account and the Belmont-Brian Pastures reserve account. Action has been taken to incorporate the full value of the Australian Meat and Live-stock Corporation’s equity in both properties in the financial accounts. A separate account (Belmont-Brian Pastures operating account) reflects the Corporation’s interest in the financial operations of the properties for the

period 1 July, 1983 to 30 June, 1984.

National carcase classification scheme Following legal advice that the assets and liabilities of the national carcase classification scheme are directly attributed to the Australian Meat and Live-stock Corporation, it has been considered appropriate to incorporate the accounts of the national carcase classification scheme in the financial statements of the Australian Meat and Live-stock Corporation. The scheme has evolved in two stages. At the inception of the scheme in 1976 a national carcase classification fund was established in order to finance the provision, testing and commercial evaluation of the carcase classification system for cattle, sheep and pigs.

Contributions to the fund were received from the six State Governments, the Commonwealth Government, the Australian Meat Research Committee, the Australian Meat Board and the Australian Pig Industry Research Committee. On 22 September, 1977 the Minister for Primary Industry announced the Government’s decision to provide up to $6 million towards the capital cost of implementing carcase classification in beef chains. Included in this amount were funds to be made available to the AMLC to meet contingencies in finalising the commercial development of the system and to ensure the completion of trial programmes around Australia already financed by the

Commonwealth and State funds.

Sheep meat market development fund This fund was established during the financial year 1982/83 to promote Australia's sheep- meat trade especially in the Middle East markets. The fund has been set up under the

auspices of the Australian Meat and Live-stock Corporation and is to be funded by a 2 cent increase in the rate of the live-stock slaughter levy for sheep and lambs. The Commonwealth has agreed to contribute to the fund up to $1 million a year on a dollar for dollar basis with the industry up to October 1985.

Australian lamb promotion fund This fund was established in February 1984 following a recommendation from the producer consultative group to increase the rate of the livestock slaughter levy for lambs by 10 cents per head for the purpose of market development and promotion. The fund has been set up

under the auspices of the Australian Meat and Live-stock Corporation.

Quality assurance scheme During the financial year 1982/83 the Commonwealth Government provided assistance to the Australian Meat and Live-stock Corporation by making a contribution of $1 million towards the cost of the development of a quality assurance scheme for export meat. During 1983/84

no further commonwealth funding was received by the AMLC, and the scheme was terminated by the AMLC during 1983/84.

Page 35

Licence compliance extension service Following the termination of the quality assurance scheme the AMLC introduced the licence compliance and extension service. The objectives of this service are to provide technical advice to the meat industry and establish that conditions relating to the issue of meat export licences are being complied with. The service is fully funded by the AMLC.

2. LIVESTOCK SLAUGHTER LEVIES Included in livestock slaughter levies:— (a) Industry contribution to the sheep meat market development fund .......................... 474,014

(b) Industry contribution to the Australian lamb promotion fu n d ...................................... 457,979

931,993

3. GRANTS Promotional activities undertaken by the Corporation in selected overseas markets received financial support from the Commonwealth Government. Each $1.65 of approved Corporation expenditure attracted a 65Φ grant from the Overseas Trade Publicity Committee (OTPC) to a

prescribed maximum. In addition, eligible Corporation expenditure attracted the maximum grant under the Export Market Development Grants (EMDG) scheme to be received during 1984/85.

The financial effect of these Government grants is summarised as follows: 1984 $

Corporation expenditure on meat promotions in overseas m arkets................................................................................... 1,034,448

Less OTPC g ra n t................................................................................... 366,110

668,338

Less EMDG grant.................................................................................. (a) 200,000

Net expenditure by the corporation ................................................... 468,338

(a) estimated grant to be received in 1984/85 (b) grant received in 1983/84

4, Grant received from the Commonwealth Government during 1983/84 for funding of the national carcase classification scheme $116,000.

5. Grant received from the Commonwealth Government during 1983/84 for funding of the sheep meat market development fund $472,623.

6. INVESTMENT INCOME 1984 1983

$ $

Investment income Australian Meat and Live-stock Corporation ................................................................... 876,490 979,682

Investment income national carcase classification schem e.............................................................................. 12,688 18,817

Investment income sheep meat market development fu n d .................................................................................... 93,682 27,491

Investment income Australian lamb promotion fu n d ............................. 3,193 —

986,053 1,025,990

7. OTHER INCOME 1984 1983

$ $

Commission .......................................................................................... 237 278

Islamic slaughter certificate recoveries ............................................ — 55,827

Realisation of assets............................................................................. 63,689 6,121

Realisation of investments................................................................... — 876

Recoveries from handbook p ublications........................................... 11,963 20,393

Rental data point com puter................................................................. — 6,902

Advertising recoveries........................................................................... 9,768 —

Sundries................................................................................................. 355 18,000

86,012 108,397

1983 $

882,530 321,504

561.026 (b) 200,000

361.026

Page 36

8. SALARIES OVERSEAS 1984 1983

$ $

L o n d o n ........................................................................................................... 149,746 149,386

New Y o r k ....................................................................................................... 218,711 210,284

Tokyo ............................................................................................................ 321,686 298,773

B a hra in ........................................................................................................... 168,288 136,367

Singapore....................................................................................................... 153,435 112,665

1,011,866 907,475

9. ADMINISTRATIVE EXPENSES — AUSTRALIA 1984 1983

$ $

Travelling Expenses............................................................................... 214,723 196,830

Insurance................................................................................................ 112,275 34,203

Legal Expenses....................................................................................... 273,009 71,900

Postage, Printing & S tatio ne ry............................................................ 370,404 337,677

R e n t.......................................................................................................... 658,388 596,031

Telephone .............................................................................................. , 132,635 112,040

External Audit F ees............................................................................... 41,000 36,620

O th e rs ...................................................................................................... 241,296 227,159

2,043,730 1,612,460

10. ADMINISTRATIVE EXPENSES — OVERSEAS 1984 1983

$ $

L o n d o n .......................................................................................................... 193,421 195,556

New Y o r k ...................................................................................................... 276,979 203,750

Tokyo ............................................................................................................ 279,192 223,418

B a h ra in .......................................................................................................... 269,184 323,448

Singapore 194,084 181,152

1,212,860 1,127,324

11. MEMBERS OF CORPORATION — SALARIES, FEES AND EXPENSES The Chairman and Members of the Corporation receive such salaries, fees and expenses as are determined by the Remuneration Tribunal, $345,759. Emoluments or other benefits received or due and receivable directly or indirectly by full-time members included in the above $72,139. Emoluments or other benefits received or due and receivable directly or indirectly by other members included in the above $89,406.

12. PROMOTION AND PUBLICITY Promotion and publicity expenditure for 1983/84 includes an amount of $747,272 which relates to promotional and administrative activity in respect of the sheep meat market development fund and an amount of $33,262 which relates to the Australian lamb promotion fund. Administrative expenditure in respect of the sheep meat market development fund was $99,234 and project expenditure was $648,038. Administrative expenditure in respect of the lamb promotion fund was $28,837 and project expenditure was $4,425.

13. RESEARCH AND TECHNICAL SERVICES 1984 1983

$ $

National carcase classification sch e m e ............................................. 266,768 564,429

Quality assurance schem e.......................................................................... 538,467 749,315

O th e r........................................................................................................ 57,333 70,593

Licence compliance extension service ..................................................... 283,586 —

1,146,154 1,384,337

Page 37

The national carcase classification expenditure included salaries $41,309, operating expenses $225,350, equipment $109, The quality assurance expenditure included salaries $335,194, administration $95,141, training school $108,132. Licence compliance expenditure included salaries $203,102, administration $80,484.

14. TRANSFER TO PROVISIONS 1984 1983

$ $

Provision for recreation leave.................................................................... 256,282 267,222

Provision for long service lea ve ................................................................. 66,482 60,241

Provision for superannuation pension increases.................................... 160,000 130,000

482,764 457,463

15. TRANSFERS TO RESERVES 1984 1983

$ $

Transfer to Belmont-Brian Pastures reserve account...................... 5,943 9,504

5,943 9,504

16. TRANSFERS FROM RESERVES 1984 1983

$ $

Transfer from Belmont Station investment reserve account........... — 5,310

17. MISCELLANEOUS INCOME 1984 1983

$ $

Sales of e qu ip m e n t............................................................................... 4,421 21,794

Rations and quarters............................................................................. 4,365 3,764

Grain sales.............................................................................................. 19,545 1,578

Fodder..................................................................................................... — 870

S undries.................................................................................................. 1,336 495

In te re s t................................................................................................... 2,308 —

31,975 28,501

18. LIVESTOCK DECREASE $

Value of livestock on hand — 1/7/83 ........................................................................... 981,836

Value of livestock on hand — 30/6/84......................................................................... 888,593

Decrease in value of livestock...................................................................................... 93,243

19. TRANSFER TO BELMONT-BRIAN PASTURES RESERVE ACCOUNT $5,113 represents a transfer of 50% of the net proceeds of the sale of pure bred cattle on the Belmont and Brian Pastures properties to the Belmont-Brian Pastures reserve account in accordance with the memorandum of agreement.

20. TRANSFER TO UNREALISED PROFIT ON LIVESTOCK RESERVE ACCOUNT $37,197 represents an estimate of unrealised profits transferred to the reserve until such profits are realised.

21. TRANSFER FROM UNREALISED PROFIT ON LIVESTOCK RESERVE ACCOUNT $114,293 represents an appropriation of unrealised profits previously transferred to the reserve.

22. ACCUMULATED FUNDS $

Balance 1/7/83................................................................................................................ 11,409,030

(Deficiency) 30/6/84 ....................................................................................................... (218,177)

Accumulated Funds as at 30/6/84 .............................................................................. 11,190,853

Accumulated funds include unexpended moneys as at 30/6/84 in the national carcase classification scheme $112,887, sheep meat market development fund $997,315, Australian lamb promotion fund $427,909.

Page 38

23. RESERVES Includes:— $

(i) Belmont-Brian Pastures reserve a c c o u n t............................................................ 58,932

The balance of the account at 1 July 1983 was $47,876. During the year ended 30 June, 1984 total amounts credited to the account were $11,056 which included an amount of $5,943 representing interest on the accumulating balance of the account. Transfers from the reserve during the

period were $nil. (ii) Unrealised profits on live-stock reserve a c c o u n t............................................... 846,499

The balance of the reserve at 1 July, 1983 was $923,595. During the year ended 30 June, 1984 an amount of $37,197 was transferred to the account and an amount of $114,293 was transferred from the account. _________

905,431

24. LAND AND IMPROVEMENTS AT COST 1984 1983

72,?93 Residential land ................................................... 72,193

Land Belmont-Brian Pastures............................ 590,371 590,371

Land improvements Belmont-Brian Pastures .. 322,551 314,837

985,115 977,401

25. BUILDINGS AT COST LESS DEPRECIATION 1984

$

1983 $

176,671 Residential b u ild in g s........................................... 176,671

Belmont-Brian Pastures station b u ild in g s....... 358,829 358,829

535,500 535,500

Less depreciation................................................. 125,473 106,012

410,027 429,488

26. PLANT, EQUIPMENT, FURNITURE AND VEHICLES AT COST LESS DEPRECIATION 1984 1983

$ $ $ $

Plant, equipment, furniture and vehicles at cost ..........................................

Less depreciation on plant, equipment 1,387,184 1,081,970

579,499 furniture and vehicles................................ 613,005 774,179 502,471

Belmont-Brian Pastures plant, equipment, furniture and vehicles at c o s t...................

Less depreciation on plant, equipment, 287,073 278,322

160,009 furniture and vehicles................................ 162,518 124,555 118,313

898,734 739,508

27. INVESTMENTS Investments comprise Commonwealth Government and Semi-Government inscribed stock and transferable deposits. Total costs and values were: 1984 1983

S S

Capital c o s t............................................................................................ 839,496 840,496

Face v a lu e .............................................................................................. 839,500 840,500

Market value .......................................................................................... 687,831 617,814

28 . LIVESTOCK Includes all livestock on market value.

Belmont ........

Brian Pastures

hand at 30 June, 1984 at Belmont-Brian Pastures valued at estimated

1984 1983

$ $

...................... 570,843 685,136

..................................... 317,750 296,700

888,593 981,836

Page 39

29. CASH AT BANK AND IN HAND

Bank Balances and Cash:— Australian Meat & Live-stock Corporation....... Belmont station fu nd ...........................................

Brian pastures station trust fu n d ........................

National carcase classification sch em e ............. Sheep-meat market development fu n d ............... Short term investment account.......................... .

Lamb market development and promotion fund National carcase classification fu n d ...................

1984 1983

$ $

33,826 9,178

91,088 15,578

59,771 48,637

19,780 20,743

10,476 —

11 —

18,627 —

9,223 —

242,802 94,136

30. SHORT-TERM DEPOSITS Short-term deposits comprise:— Bank deposits, bank accepted bills and amounts invested in the official Australian short term money market at call.

Total values at 30 June were:—

Bank deposits..................

Bank accepted b ills ......... Short-term money market Australian savings bonds.

1984 $ nil

6.763.118 1,200,000 200,000 8.163.118

1983 $

246,904 6,803,987 650,000

7,700,891

Short-term deposits at 30 June 1984 include an amount of $100,000 which relates to the national carcase classification scheme and $1,075,555 which relates to the sheep meat market development fund and $300,000 from the lamb market development and promotion fund.

31. SHORT-TERM INVESTMENTS Short-term investments are comprised of deposits which will mature before 30 June, 1985.

Total costs and values at 30 June were:—

1984 1983

$ $

Capital c o s t.......................................................................................... 1,000 558,558

Face v a lu e ............................................................................................ 1,000 559,600

Market v a lu e ........................................................................................ 948 548,290

32. ADVANCES, DEPOSITS AND PREPAYMENTS 1984 1983

$ $

Advances............................................................................................. — 3,070

Prepayments........................................................................................ 80,317 72,524

Security deposits................................................................................. 71,401 66,599

151,718 142,193

33. SUNDRY DEBTORS 1984 1983

$ $

Amounts owing to Australian Meat and Live-stock Corporation ... 219,864 138,590 Amounts owing to Belmont-Brian Pastures..................................... 59,588 36,864

Amounts owing to national carcase classification scheme............. 300 20,457

279,752 195,911

Bad debts amounting to $910 were written off during the current year.

Page 40

:i4. NON CURRENT PROVISIONS Includes: (1) Provision for long service leave $406,604. The balance of the provision at July 1,1983 was $380,215. During the year ended 30 June, 1984

total amounts transferred to the provision were $42,072. Amounts charged against the provision were $15,683.

(2) Provision for superannuation pension increases $799,800.

The balance of the provision at July 1,1983 was $639,800. During the year ended 30 June, 1984 total amounts charged against the provision were nil. Amounts transferred to the provision were $160,000.

35. CURRENT PROVISIONS Provision for long service leave $24,410.

The balance of the provision at July 1, 1983 was $29,364. During the year ended 30 June, 1984 total amounts transferred to the provision were $24,410. Amounts charged against the provision were $29,364.

Provision for recreation leave $330,313.

The balance of the provision at 1 July, 1983 was $358,059. During the year ended 30 June, 1984 total amounts transferred to the provision were $256,282. Amounts charged against the provision were $284,028.

Other Funds It has not been considered appropriate to consolidate in this report the Australian Meat Research Committee account as the assets and liabilities of this account cannot be directly

attributed to the Australian Meat and Live-stock Corporation. A summary of the transactions affecting this account for the twelve month period ending 30 June, 1984 has been provided.

AUSTRALIAN MEAT AND LIVE-STOCK CORPORATION AUSTRALIAN MEAT RESEARCH COMMITTEE ACCOUNT $

Opening balance as at 1/7/83............................................................................................ 81,084

Plus: receipts to 30/6/84...................................................................................................... 541,255

Less: payments to 30/6/84.................................................................................................. 580,401

Closing balance as at 30/6/84 .......................................................................................... >938

The Australian Meat and Live-stock Corporation Australian Meat Research Committee account is mainly comprised of amounts allocated by the Australian Meat Research Committee pursuant to the Meat Research Act 1960. The balance in the account represents the total funds available for research projects administered by the Australian Meat and Live-stock Corporation, the cost of

postgraduate studentships awarded by the Australian Meat Research Committee and administration costs of the Australian Meat Research Committee. Allocations approved by the Australian Meat Research Committee for these items for the financial year 1983/84 were:— $

Research projects ............................................................................................................... 128,700

Post graduate student sch olarships................................................................................. 150,000

Adm inistration....................................................................................................................... 258,000

536,700

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Page 42

Division of

Technical Services

Beef research stations The Corporation owns two properties in Queensland, which are used for research into improving beef cattle production in the northern environment by means of better nutrition, husbandry, pest and parasite control and breeding. One property, Belmont, near Rockhampton, is staffed and managed by the CSIRO. The other, Brian Pastures, at Gayndah, is operated and managed by the Queensland Department of Primary Industries. The original holdings were bought in 1952 and adjacent land acquired since then for both properties has increased the area of Belmont to its present 3865 hectares and Brian Pastures to 3823 hectares. The research policies of the two properties are co-ordinated by the Belmont-Brian Pastures Research Committee, which has representatives from all three organisations and regional cattle producers. Some research projects at these properties are financed by the Australian Meat Research Committee.

Under the agreement with CSIRO and QDPI the Corporation is entitled to receive half of any surplus finance generated from running the properties. However, the Corporation has not exercised this right for many years, choosing instead to allow any such finance to remain in the station funds.

Belmont The National Cattle Breeding Station, Belmont, is intended primarily to investigate the breeding of beef cattle adapted to the northern environment. It:

• Analyses productive and adaptational attributes of contrasting types of cattle. • Breeds lines of cattle which enable genetic controls of important attributes to be

defined and strategies by which they can be improved to be developed. • Tests the research findings and performance of various breeding lines in

different environments as appropriate to the research aims and their practical application. Breeds and crosses under examination include Afrikander, Brahman, Hereford and

Shorthorn, with some work also being carried out with Chianina, Charolais, Simmental and Sahiwal. A significant cross breed developed from these studies is the Belmont Red which is particularly suited to tropical conditions.

Brian Pastures The Brian Pastures Research Station is essentially a pasture research station

investigating the potential for increasing beef production by: • Improving pastures • Developing more efficient methods of

pasture use and maintenance • Providing supplementary feed in the form of grain and/or fodder crops • Animal health and husbandry operations • Any other means from time to time

evolved and approved. These objectives involve agrostological and agronomic investigations, ecology and management of natural pastures, effects of burning natural pastures, incorporation of legumes into natural pastures, establishment and use of sown pastures, cultivation and use of grain and fodder crops and animal health and husbandry investigations.

Australian Meat Research Committee (AMRC) The AMRC is administered under the auspices of the Corporation although constituted by a separate Act of Parliament — the Meat Research Act, 1960 — and composed of an independent membership. The Act provides for the Chairman of the AMLC to be a member of the Committee. The AMRC operations are quite separate and independent of the Corporation. The Corporation has continued to provide administrative, clerical and other assistance to the Committee during the year, the cost being

recouped from the Meat Research Trust Account. Research supported by the AMRC is conducted by the CSIRO, the State Departments of Agriculture, the Northern Territory Department of Primary Production, the AMLC, most universities, the Queensland

Instimte of Medical Research, as well as the Cattle Council of Australia, the Queensland Department of Lands, the Livestock and Meat Authority of Queensland and other institutions. Research carried out during the year includes studies on:

• Breeding relationship between adaptive traits and growth • Reproductive biology and physiology • Embryo transfer and manipulation • Temperature regulation • Index of tick resistance • Lantana poisoning • Control of feed intake and carcase

composition.

Page 44

The Committee meets twice a year. One meeting deals with the research budget for the following financial year and the second reviews new proposals for possible funding from the Meat Research Trust Account. Postgraduate scholarships and study awards

:are also considered at the second meeting. In May 1984 the AMRC recommended to the Minister for Primary Industry allocations totalling $12.3 million for 1984/85 (last year

SI 1.8 million). These made a total of approximately $100 million from the start of grants in 1962-63 to the end of 1983-84 financial year. The recommended allocations

were:

Cattle and beef research Sheep Goat research Industry Section,

CSIRO Meat Research Laboratory

Cannon Hill Postgraduate studentships Administration Extension & industry

liaison Contingencies

1984-85 1983-84

$6.3 m $4.1 m $89 386

$6.5 m $4.0 m

$700 877 $663 854

$150 000 $275 000

$102 850 $585 000

$150 000 $258 000

NA

Further details of AMRC activities can be found in its annual report.

Halal Fee Justification Panel At the request of the Minister for Primary

Industry, M r John Kerin, the Corporation established a committee, the Fee Justification Panel, to enable the Australian Government

Supervised Muslim Slaughter (AGSMS) system to come into operation on 1 January 1984. This panel comprises: One Muslim member nominated by the

Minister on the recommendation of the Islamic bodies, M r Aurangzeb Khurshed One member representing the meat industry nominated by the Meat Exporter

and Abattoir Consultative Group, Mr A. E. C. McDonald One member nominated by the Chairman

of the AMLC being an officer of the Corporation, M r R. S. Jordan. At the direction of the Minister the following terms of reference were established for the panel:

1. Islamic bodies recognised by the Australian Government for purpose of

halal certification of export meat will fund that service by recovering a certification fee direct from the persons to whom the certificates are issued 2. These bodies will submit their scale of

fees and the basis for establishing those fees to a fee justification panel 3. The panel will satisfy itself as to the equitability of those fees 4. The panel, should it determine that the

scale of fees is not justified, will enter into discussions with the recognised Islamic body concerned with a view either to justifying the scale of fees, or to having the Islamic body establish a new scale of

fees which is justified 5. In determining whether a scale of fees is justifiable, the panel will take into consideration:

(a) the cost of providing a service considered commercially acceptable by the AMLC and (b) whether any margin of income over

costs is fair. In instances where the panel and the Islamic body are unable to agree on a scale of fees which the panel accepts is

justified, the panel will inform the Minister for Primary Industry.

The first meeting of the panel was held in Sydney on 28 February 1984 to consider information which had been provided by the

various recognised Islamic bodies. However, the panel considered that insufficient information had been supplied for a satisfactory assessment to be made of any religious body’s submission. Documentary

evidence was required of actual costs incurred in the provision of the halal certification so that some basis for a proper assessment could be reached.

The panel concluded that on the evidence available, it could not consider the fees justified on the basis of recovery of cost. The

only justification offered was that historically the industry had accepted the fees. The panel considered that the current fees had not necessarily been a matter for negotiation but had rather been stipulated by the various

Islamic organisations.

The panel further considered there was no justifiable evidence for the amount of money being collected by the current fee structure. Some of the organisations did not generate substantial money from the fees but the larger

organisations generated more funds than were required to recover the costs for providing halal certification.

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Islamic religious slaughter The interim system used by the Australian Government for issuing halal certificates finished officially on 31 December 1983. Meat produced up to that date was still exported under the interim system, but had to be cleared by 30 June 1984.

Approximately 5000 certificates were validated under the interim system from 1 July 1983 to 31 December 1983. This number fell drastically in the following six months with

1100 certificates validated from 1 January to 31 March 1984 and 150 in the final three months of the fiscal year. The AGS MS system began on 1 January

1984. New stamps and certificates were issued by the Government to the approved certifying bodies for use with all halal export meat produced from that date. The AMLC was also required to register all

Muslim slaughtermen recommended by certifying bodies and to issue them with identity cards. These cards have to be carried and verified by the senior EIS inspector before official halal stamps are released and/or

slaughtermen are allowed to kill. Initially most of the nominated Muslims were for slaughtermen positions only. Several slaughtermen became supervisors and additional supervisors were appointed by the

Australian Federation of Islamic Councils.

Iran Only one enquiry for the supply of meat came from Iran during 1983/84 but no contracts were written. Under the supervision system for Iran, plants have to be approved by Hojatoleslam Mohammed Sharif Mahdavi, the Religious Supervisor for Australia and New Zealand, for the actual period of a contract and before the start of any production. One inspection visit was carried out by Hojatoleslam Mahdavi but as no contracts were written no works were approved for production.

Electronic selling of livestock National conference The Corporation, in conjunction with the AMRC, sponsored a national conference on computer aided marketing of livestock in

Sydney on 9 December 1983 to consider a feasibility study report prepared by the Agricultural Business Research Institute of the University of New England.

The conference was opened by the Minister for Primary Industry and was attended by 130 invited industry representatives — producers, processors, agents, wholesalers and retailers and officials from the Commonwealth and

State Departments and Authorities. Members of each section of the industry addressed the meeting and open discussion followed. As a result of these discussions two resolutions were accepted:

To develop an electronically aided cattle and sheep selling network incorporating the appropriate technology and methodology on an Australia-wide basis giving equal access to all potential vendors, agents and buyers of cattle and sheep regardless of size, affiliation or remoteness. The deployment of trials of sale by description, similar to the ABRI system, and others, to diverse market environments as soon as possible.

The Corporation, at its March 1984 meeting, agreed to continue its participation as the market operator organisation to allow the AMRC research trials to be completed. Price Waterhouse and Associates, business consultants, were engaged to carry out an investigation and advise the options open to the Corporation in setting up a marketing organisation. This was to allow a thorough investigation of the options and facilitate progress from the trials to a commercial operation. This company has submitted two reports to the Corporation setting out its recom­ mendations for setting up such a system and as a result a number of trading banks and computer networking companies has been approached for comments and/or expressions of interest in becoming involved in the marketing operation.

Royalty on carcase tags The Corporation owns a registered design for a self-tying carcase ticket which can be printed by computer controlled ticket printers. This design is registered in Australia and New

Zealand and will be in force until November 1990. Negotiations between the Corporation and a New Zealand company, Globe Printing Company Limited of Wellington, to enter into an agreement for the manufacture and sale of tickets, cut to the Corporation’s design, were planned for later in 1984. These tickets would be sold for use within the meat industry and

for other purposes outside the meat industry.

Page 46

It had been agreed that Globe Printing would have exclusive rights for production in New Zealand and that the Corporation would receive a royalty, based on audited annual production figures of 40' Australian a

thousand. This royalty agreement will be reviewed annually after consultation between the Corporation and Globe Printing. The estimated production of these tickets is 30 million during 1984/85 to supply both the New Zealand and Australian meat industries. The estimated return to the Corporation under this royalty agreement would be SA12 000. A similar arrangement could be entered into with an Australian company for production in Australia under the same conditions.

Sheepmeats Market Development and Promotion The Technical Services Section has been involved in several projects proposed and funded by the Sheepmeats Market

Development and Promotion Fund. One of these was to test the feasibility of CO2 containerisation of sheepmeats and another covered alternative cutting techniques for

lamb.

CO2 containerisation of sheepmeats On the understanding that importers in the Middle East pay a premium for chilled sheep carcases over frozen carcases, the Sheepmeats Marketing and Promotion Fund Committee proposed a project to test the potential of chilled containerisation with a CO2 atmosphere. The use of increased levels of CO2 is known to prolong the storage life of chilled product and has been used for shipments of beef and horsemeat with acceptable results. This particular project involved containerisation of 213 sheep carcases of various types. The contents were held chilled (~1°C) in an atmosphere of between 25 and 30 percent CO2. To make the trial a simulation of a voyage to the Middle East, Overseas Containers Limited arranged shipment of the container from Sydney to Singapore and back to Brisbane for off­ loading, a round trip voyage of 58 days. Assessment of the carcases when the container was opened showed they were only fit for edible by-products. This was due to continued bacterial growth which had taken place. The procedure was not considered to be commercially viable for the Middle East trade and no further work is to be carried out at this stage.

Alternative cuts of lamb Early in 1983 the British Meat and Livestock Commission developed a new technique for cutting up lamb carcases. The Technical

Services Division of the Corporation tested the suitability of the technique for Australian conditions. The technique offered two alternatives, one to

roll the sides and produce roasts of varying sizes and the other to produce steaks from the loins, legs and topsides, in conjunction with rolled shoulders and breasts. As a result of these cutting trials a report was produced which generated a great deal of interest and discussion. At the time of writing several projects and promotions were under way to develop more cuts suitable to the Australian market as well as improve the growth, production and marketing of lamb and lamb products.

Carcase competitions The Corporation has once again given financial support to a number of carcase competitions at agricultural shows throughout

Australia for both beef and lamb. The sponsorship helps to encourage producers to take part in carcase competitions and benefit from the many advantages of such events. The amount of sponsorship given by the

Corporation over the past year is $7000 for beef and $2300 for lamb competitions.

Live cattle judging Over the past three years the Corporation has undertaken a $1000 sponsorship of a competition for live judging of beef cattle by young judges. This competition is conducted in association with the Agricultural Societies Council of NSW and winners and runners-up

of zone finals are invited to contest the state final at the Sydney Royal Easter Show. There were 21 entries in the 1984 competition. John Carter of Arcadia, came first; Edward Moorehead of Baryulgil, second;

Andrew Laurie of Gloucester, third and Graham Lambert of Bolwarra, fourth.

Handbook of Australian M eat The fourth edition of the Handbook of Australian Meat had reached the stage where

a draft of all sections was prepared and forwarded to industry representatives for their comments. The Export Inspection Service had still to advise on certain product classification details and definitions for inclusion.

Page 47

The EIS also advised that details for goatmeat, buffalo, smallgoods, canned goods, grain/lot fed beef and lamb would be available by the end of July. This information was to be incorporated as soon as it became available.

It was anticipated that the new edition would be available by late 1984.

Strip branding of beef Over the past two years the AMLC has provided $152 066 in joint funding for trials on strip branding systems for accelerated conditioned beef in Queensland, NSW and

Western Australia. These trials have been conducted by the Meat Authorities and Departments of Agriculture in these states and consumer reaction has been sought. The general consensus of opinion was that the concept was very acceptable but that a nationally agreed system of monitoring must be in place to ensure proper application to carcases, primal cuts and retail pre-packaged meat. A meeting of Meat Industry Authorities was convened in May at the request of the

Standing Committee on Agriculture working party on livestock and meat. This meeting proposed the setting up of a national system for colour strip branding of beef having the following criteria:

Gold brand: 0-2 tooth, subject to accelerated conditioning Red brand: 4-7 tooth, subject to accelerated conditioning

Purple brand: 0-7 tooth, lot-fed beef, subject to accelerated conditioning and evidence of the appropriate feeding standards having been used. The AMLC agreed to form a steering committee to develop adequate terms of

reference to help create a national system for colour strip branding. A firm of marketing strategy consultants was engaged to undertake a market analysis and form a market development and launch programme for the promotion of this concept.

External Panel of Review of National Beef Recording Scheme (NBRS) The NBRS has been in operation for more than 10 years. Its role is to provide a service

to help beef breeders, breeding organisations and beef producers to achieve their breeding goals by providing a recording service. This includes performance recording, pedigree recording, analysis of aggregate statistics for member breeds, provision of objective data for inclusion in sale catalogues and other support services. The Corporation has managerial responsibility for the scheme and the day-to­ day operations are undertaken by the Agricultural Business Research Institute of the University of New England. At the request of the Standing Committee on Agriculture the AMLC has appointed a four- man panel to undertake a review of the scheme’s operation. The members of this panel are:

Mr R. Carraill, Chief, Division of District Industry Services, Department of Agriculture, Victoria. Professor B. Latter, Head of the Department of Agricultural Genetics and Biometry at the

Faculty of Agriculture, University of Sydney. M r N. Clissold, a senior consultant on data processing and a qualified accountant with Price Waterhouse Associates. The terms of reference for this review are to evaluate the progress in achieving the aims of the NBRS, review the terms of operation of the NBRS, establish the present and future role of the NBRS in the beef cattle industry and define the needs and requirements for continuation of the NBRS.

Breed societies, industry members, users and non-users, have been invited to make submissions to the panel setting out their opinions and suggestions on the past and future activities of the NBRS.

It was anticipated that a report would be made to the Standing Committee on Agriculture at its February 1985 meeting.

Uniform branding of lambs At a meeting of the SCA in February 1981, it was agreed that a uniform definition of lamb and hogget be adopted and this should coincide with the revision of the Exports

(Meat) Regulations and subsequent amendments. It was also agreed that where ribbon branding of lamb was required, design, placement, size and colour of brand should all be uniform.

Implementation of uniform lamb branding has not been achieved despite numerous attempts. Queensland and NSW have almost identical brands, Western Australia is legislating to introduce one similar. Victoria has a quite different brand. South Australia and Tasmania have no lamb branding

Page 48

requirements. However, New South Wales iamb brands are used in both of these states. A meeting was held on 16 May 1984, chaired by the Chairman of the Sheepmeat Council of Australia and attended by representatives of the State Agricultural Departments and Authorities, at the request of the SCA Working Party on Livestock and Meat. It was agreed that national uniformity was desirable, particularly in terms of brand colour, placement and base design. However, some variation within the base design should be permissible to suit individual requirements within states. In a move towards early implementation of uniform branding, a prototype roller was being prepared for circulation to states by the

Sheepmeat Council of Australia for trials to be carried out and results evaluated.

Standard description of meat At the request of the Food Standards Committee of the National Health and Medical Research Council, the Corporation,

in conjunction with the Meat and Allied Trades Federation, the Retail Traders’ Association and the Pig Meat Promotion Committee, produced a voluntary code of

practice for the standard description of retail meat cuts. This code of practice was introduced in November 1980. It is a voluntary code for use in retail advertising and displays in an endeavour to achieve uniformity of description throughout Australia. It has been generally well supported by most sections of the retail meat trade and supermarkets, though some sections are still using terms other than the standard descriptions.

At the May 1984 meeting of the Food Standards Committee a recommendation was made that the code of practice be extended for a further two years with an indication to

industry that unless a greater degree of compliance were achieved in future, it might be necessary to introduce suitable regulations.

The Corporation was to undertake further publicity during 1984/85 in an endeavour to increase usage of the descriptions in all displays and advertisements.

Mr Rob Hamilton, AMLC technical officer, measuring the fat depth at the sacral crest site of a carcase. This was part of a study of fat measurement, a

system which is becoming a more common method of determining the value of a carcase.

Page 49

Nutrition programme The Corporation approved a $100 000 nutrition programme as part of its overall

1984/85 red meat promotion. A nutritionist was to be employed on the staff to provide unbiased factual information regarding the nutritive value of meat.

The nutritionist would be involved in the preparation of AMLC publications, liaison with people involved in nutrition and medical science in universities, hospitals and industry, present papers and talks at public meetings and conferences on behalf of the Corporation and “back up” publicity and advertising claims. With the employment of the nutritionist, the Corporation also intended becoming actively involved with the Council of the Nutrition Research Foundation of Sydney University.

New trade descriptions New trade descriptions for export meat were introduced on 1 October 1983, by amendment to the Manuals of Meat Inspection and Meat

Handling Procedures. Ministerial Orders, under the Export Control Act, were introduced on 1 January 1984. To service our overseas markets the Corporation’s overseas offices assisted the Department of Primary Industry in the production and distribution of two brochures to advise overseas importers of Australia’s revised meat trade descriptions. The first was an A4 typed version with a glossy coloured brochure following. The new system replaced the visually determined subjective grades previously used to describe meat for export. It is an objective system based on measurable carcase and meat characteristics, providing a more accurate and

reliable guide to the quality of meat. An EIS monitoring manual has been distributed to registered export abattoirs. It includes standard definition of a carcase and all other compulsory components required by the trade descriptions. The Export Inspection Service staff will also be responsible for the monitoring of product if a company is packing to meet an option as set out in the Trade Descriptions as this option becomes compulsory.

Data processing The Corporation’s Wang VS System is used

by every department in the Corporation for word processing or for special application programmes. The computer was upgraded from a VS80 to a VS 100 at the beginning of the financial year. The increased processing power enabled the Corporation to meet the greater demand for enquiries concerning meat and livestock exports and for financial and word processing activities. The computer hardware includes one million characters of main memory storage, 726 million characters of magnetic online disk storage, a 600-line per minute printer, two daisy wheel word processing printers, two high speed draft printers, 22 work stations and 300 baud rate communications facilities. These facilities make possible: • Report writing under word processing

such as used in this report. Once the report has been assembled the information can be sent to the publishers on a diskette for phototypesetting and printing; • Statistical analysis of the Forms 4, 9 and

L for publication, internal use and for monitoring tonnages shipped; • An addressing system for all publications; • Processing of payroll; • Basic economic modelling and forecasting

internally and more advanced forecasting using the data communications link with Computer Sciences of Australia and

Sydney University; • Recording and depreciation of the assets and insured items; • Servicing the many one-off enquiries

concerning meat and livestock shipments that the Statistics and Export Control Sections handle each day; • Extracting and collating of slaughter data from the Queensland Meat Authority, the Victorian Department of Agriculture and the NSW Department of Agriculture for the Cattle Price Indicators Report; • Sending of telexes from each section within the Corporation. New software includes an accounts package from Berger Software.

Licence Compliance and Extension Services Section This section was established on 14 December 1983 with a total staff of 15:

Head office support staff: Chief technical officer 1

Page 50

Technical officer 1

Training officers 3

Administration clerk 1

Steno-secretary 1

New South Wales Licence compliance and extension officer 1

Victoria Licence compliance and extension officers 2

Queensland Senior licence compliance and extension officer 1

Licence compliance and extension officer 1

Western Australia Senior licence compliance and extension officer 1

Licence compliance and extension officer 1

South Australia Licence compliance and extension officer 1

Total: 15

This section, formerly known as the Quality Assurance Section and with a staff of 27 persons, opened on 8 November 1982. A reduction of 12 staff was required as a result

of withdrawal of Commonwealth Government funding for the second year of its operation. The activities of the Licence Compliance and Extension Section include:

(a) Training meat industry employees for quality assurance accreditation purposes, to meet the Corporation’s licensing requirements. Initial courses were conducted on a weekly basis at Gosford training centre, with 922 persons attending over 18 months. Among these were 68

Export Inspection Service personnel (veterinary officers and meat inspectors) and 43 AMLC personnel. (b) Following a request from industry

representatives to conduct further quality assurance accreditation courses on a regional rather than a centralised basis, a programme was developed for the balance

of 1984. A total of 15 courses was planned: Three courses — Victoria Two courses — Western Australia Three courses — New South Wales

Five courses — Queensland Two courses — South Australia

(c) On-plant training of industry personnel in the areas of boning, slicing and packing, on invitation by management — this is a growing part of our activities.

Licence compliance activities Initial explanatory visits have been conducted and licence compliance assessments of licensees are under way, to ensure that exporters and registered establishments are conducting their quality assurance

programmes as required by AMLC Order No M14/83.

Other activities: (a) Overseas and Australian meat cutting and demonstration activities in conjunction with the publicity division.

(b) Preparation of extension material for industry, particularly in the area of video production. (c) Preparation of the fourth edition of the

Handbook of Australian Meat. (d) Participation in activities overseas such as the EIS trade description task group which visited major meat importing

countries; attendance at overseas technical conferences and conduct of study tours in established and developing markets. (e) Follow up trade complaints.

National Beef Recording Scheme The Agricultural Business Research Institute has maintained computer registers for 23 breeds. Performance data has continued to be

processed for all breeds in the basic performance recording unit. Major advances have been made in the procedures for analysis of performance data. The Animal Genetics and Breeding Unit has developed best linear unbiased prediction

(BLUP) techniques to apply at herd level. These provide estimated breeding values for a variety of traits for all recorded animals in the herd. A herd profile report is also produced which differentiates between the effects of genetic and environmental factors on trends of

performance. Extension services for NBRS have also been improved. M r Don Nicol was seconded from the Department of Primary Industries in Queensland to work from the NBRS headquarters in Armidale as the National Extension Co-ordinator. There was a strong resurgence of interest in performance recording as a result of the improvement in seasonal conditions and advance in cattle prices.

Page 51

Ψ 1

AUSTRAUAN MEAT & LIVE-STOCK CORPORATION

V____________ V

Division of

Marketing Services

Commercial services USA The USA remained Australia’s largest market for beef and veal in the 12 months ended June 1984. Exports totalled 239 415 tonnes which was 54.5 per cent of Australia’s total beef exports for the fiscal year. Australia also exported 272 tonnes of mutton, 1740 tonnes of lamb, 145 tonnes of pork and 784 tonnes of fancy meats. Beef and veal exports in 1983/84 were almost 24 per cent lower than in the previous fiscal year. The drop was mainly related to decreased production in Australia, a result of herd rebuilding, and high levels of meat production in the USA. In the latter half of 1983, the US Government negotiated voluntary restraint agreements with the major meat supplying countries to avoid triggering quota restrictions under the US Meat Import Law (MIL).

After protracted negotiations, Australia accepted an access level of 272 156 tonnes, about 48.5 per cent of total meat imports

under the USA Meat Import Law during 1983. The US economy showed strong signs of growth during the year, although the increasing budget deficit remained a concern. The demand for finance by the US Government to cover the budget deficit, combined with the growing demand for finance from the private sector as the US economy expanded, effectively pushed up interest rates. There was a tendency for meat processors in the USA to purchase meat on a “buy as you use” basis rather than on a forward purchase basis. This was seen by most analysts as being

a result of the high interest rates and the variability in the prices of imported meat during 1983/84. With high interest rates, financing forward purchases was expensive

and when prices were weakening many meat processors held only enough product for short term production needs to take advantage of

cheaper meat. Despite the economic recovery consumer demand for red meat was generally subdued, with only slight increases in demand during

public holiday periods. This situation carried through to meat processors whose demand for imported manufacturing quality meat was also sluggish throughout the year. Total red meat production in the USA fell

13.8 per cent to 1.99 million tonnes for the year ended June 1984, compared with 2.31 million tonnes in the previous year. This

decrease followed the drought in the USA during the summer of 1983. However, total red meat supplies in the USA increased three per cent during the first six months of 1984, compared with the same period last year.

A marked rise in cow slaughter in the first six months of 1984 increased the availability of manufacturing beef. On 29 November 1983 the US President signed into law the Dairy

Bill which cut the support price for milk and established a program to pay farmers not to produce milk. This, combined with the liquidation phase in the US cattle herd which

increased the turn-off of beef cows, led to a 20 per cent increase in cow slaughtering during the first half of 1984 compared with the previous year.

There was a significant increase in pork production during 1983/84 and a slight increase in poultry production. This, in addition to the increased production in beef in

the latter part of the period under review, provided meat processors with ample supplies for their production needs. The US values for Australian 85 chemical lean manufacturing cow beef have fluctuated between 209.43 cents GIF per kg and 232 cents GIF per kg over 1983/84. On a number of occasions, exchange rate movements during the period provided a buffer against lower prices. This assisted in increasing the average returns to exporters during 1983/84 from SA2.02 FAS per kg to

SA2.13 FAS per kg.

Canada Australian beef and veal exports to Canada increased nine per cent to 16 353 tonnes in 1983/84 compared with the previous fiscal

year. Other exports were 194 tonnes mutton, 350 tonnes lamb, five tonnes goatmeat and 295 tonnes fancy meat. There were no restrictions on meat exports from Australia to

Canada in 1983 under the Canadian Meat Import Law (MIL) of 1980. Total meat imports into Canada increased considerably in the first six months of 1984 due largely to increased imports of EEC subsidised beef.

Most Australian beef exported to Canada is of manufacturing quality in frozen boneless form. Canadian meat processors mainly purchased meat on a “spot” basis throughout

most of the year, usually not over two to three weeks in advance of use. This purchasing pattern was largely a result of high interest rates which made the forward purchase of meat expensive. Canadian meat processors were generally faced with subdued demand at the retail level.

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The cattle and calf numbers in the 1 July 1983 inventory were estimated at 12.6 million head, down about three per cent from the 13 million head recorded in 1982. Cow inventories were also down three per cent in both the beef and the dairy sectors, indicating that herd rebuilding had not begun. The most pervasive factor in the Canadian beef market during 1983/84 which reduced the incentive for Canadian cattlemen to expand herds was the high price of cattle feed, especially com and barley.

Central and Southern America The Caribbean region remained Australia’s largest market for meat in Central and South America. A total of 11 516 tonnes was exported there — 7868 tonnes of beef and veal, 1924 tonnes of goatmeat, 1188 tonnes of lamb, 234 tonnes of mutton and 302 tonnes of fancy meats.

It was also our largest market for goatmeat in 1983/84, taking 56 per cent of total goatmeat exports. For the rest of Central and South America, exports totalled only 13 tonnes of beef and veal.

Japan Australia’s meat exports to Japan totalled 124 472 tonnes in 1983/84. This market remained our second largest despite a 13.3 per cent fall in exports compared with the previous fiscal year. Increases were recorded in the beef, veal and lamb exports, with mutton recording the major fall. Lamb exports showed a dramatic improvement in 1983/84, increasing by 79.6 per cent to 6031 tonnes, Australia’s best performance in this market. The AMLC has been conducting a heavy promotional campaign for lamb in Japan and this has contributed to this increased market activity. Increasingly, lamb imports are moving into areas such as Tokyo and are not being restricted to the traditional sheepmeat­ consuming region, Hokkaido.

Mutton exports declined by 45.9 per cent to 23 881 tonnes but despite this it remained Australia’s second largest export category to Japan. This decline has been assisted by the continuing move away from the use of mutton in manufacturing, specifically in the area of hams which are now predominantly manufactured from pork. Fancy meats exports fell by 14.7 per cent to 6905 tonnes. Exports of chilled beef and veal during

1983/84 also increased 7.4 per cent to 37 569 tonnes, a new record. Australia continues to

dominate the global chilled beef and veal trade with Japan. In the year to December 1983, Australia supplied 37 504 tonnes (96.2 per cent) of the total Japanese imports of chilled beef and veal. Despite this, total beef and veal exports increased only marginally to 87 476 tonnes. Australia’s position in the imported beef and veal market in Japan has continued to be eroded by the USA. For the year ended December 1983, Japanese official statistics indicate that Australia’s share of the imported beef and veal market has continued the decline begun in 1977 and has fallen from 70.4 per cent (85 974 tonnes) to 66.2 per cent (90 927 tonnes). The USA has been the major beneficiary of this decline with its share rising from 25.9 per cent (31 572 tonnes) in 1982 to 27.5 per cent (37 713 tonnes). While Australia’s percentage share declined, the actual tonnage involved increased by 4953 tonnes. During 1983/84, the Australian, American and Japanese Governments were involved in negotiations on the Japanese global beef import quota and aspects of the operation of the quota system. Arrangements were not finalised by 30 June 1984, although basic areas of dispute were resolved. Under the proposed agreements the USA will be the major beneficiary of this round of negotiations over the Japanese fiscal years 1984-87. Australia is likely to achieve a higher level of increase in the non-grain fed meat trade than had been proposed by the Japanese. Additionally, an agreement guaranteeing a minimum access level for chilled and aged beef would give greater confidence to that sector of the Australian beef industry which supplies this part of the trade. It was expected that the final agreements would be signed in the second half of 1984.

Republic of Korea Meat exports to Korea in 1983/84 fell by 55 per cent to 38 890 tonnes compared with the previous year’s record figure of 86 496 tonnes. Frozen beef exports totalled 37 065 tonnes, a 45.7 per cent drop compared with 1982/83, and mutton exports fell 61.5 per cent to 1740 tonnes. The decline follows the lack of demand in Korea for imported beef. The National Livestock Co-operatives Federation called tenders for a total of 35 550 tonnes during the first six months of 1983, compared with tenders for 6200 tonnes for the same period this year. Problems associated with high pork production and large numbers of pigs on feed

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early in 1984 led to a Korean government policy to encourage pork consumption at the expense of imported beef. Until this excess pork supply and a recent excess supply of chicken are alleviated, it is unlikely that beef exports to Korea will recover to 1982/83 levels. Exports of mutton to Korea have declined for two major reasons. First, there has been a drop in boning out of mutton for re-export to Japan. This has been attributed to increased labour costs and lower demand from Japan. Second, as a result of the large surplus of pork, the Korean Government early in 1984 limited the entry of mutton, except where it was for re-shipment to Japan.

Other Asia (Hong Kong, Taiwan, Malaysia, Singapore and the Philippines) Australian meat exports to these markets declined by 11 per cent to 57 932 tonnes in

1983-84 compared with 1982-83. Malaysia and Taiwan were the only countries in this region to which Australia’s meat exports increased. Reduced export levels were

recorded for total beef and veal (33 025 tonnes, down 14 per cent), buffalo (456 tonnes, down 32 per cent), goatmeat (1142 tonnes, down 50 per cent) and fancy meats

(10 738 tonnes, down nine per cent). Exports increased for lamb (698 tonnes, up 10 per cent) and mutton (11 829 tonnes, up four per cent). Taiwan remained Australia’s largest market in

the region, with our exports totalling 23 779 tonnes, up one per cent. Beef and veal exports to Taiwan rose by seven per cent to 19 640 tonnes. However, exports of all other categories fell. Mutton exports totalled 2975 tonnes (down eight per cent), goatmeat 570 tonnes (down 49 per cent) and buffalo 456 tonnes (down 22 per cent). The import of fancy meats (offals) into Taiwan is still prohibited. Shipments to Singapore fell by 27 per cent to

13 626 tonnes in 1983-84, but this market remained Australia’s second largest in the region. Exports of all categories (except pork, 31 tonnes) fell significantly. Beef and veal exports declined by 31 per cent (5729 tonnes),

mutton 12 per cent (4386 tonnes), lamb 40 per cent (159 tonnes), goatmeat 68 per cent (191 tonnes) and fancy meats 31 per cent

(3129 tonnes). The major contributing factors in this decline have been the Malaysian Government’s ban on re-exports of meat to Malaysia since 1982, and a Singapore

Government decision in February 1984 to allow beef and mutton into Singapore from Brazil, Uruguay and Argentina.

Australia’s meat exports to Malaysia totalled 12 749 tonnes in 1983/84, an increase of 23 per cent compared with 1982/83. There were significant increases in exports of fancy meats (3821 tonnes, up 49 per cent) and mutton (4387 tonnes, up 49 per cent). Lamb (229 tonnes, up 15 per cent) and chilled beef and veal exports (162 tonnes, up 42 per cent) also increased. However, total beef and veal (3942

tonnes, down four per cent) and goatmeat exports (367 tonnes, down 32 per cent) fell. Australia is the major supplier of mutton, goat and offals to Malaysia and continues to

dominate the small East Malaysian markets (Sabah and Sarawak), although Indian buffalo meat continues to dominate the sizeable imported lean beef markt in Peninsular

Malaysia (West Malaysia). Only meat which is halal slaughtered in works approved by the Malaysian authorities may enter Malaysia.

Australian exporters faced extremely tough competition in Hong Kong in 1983/84, mainly from cheaper product from China, South America and Africa. The result was

that exports declined by 38 per cent to 5527 tonnes. Decreased total beef and veal exports (1760 tonnes, down 64 per cent) accounted for the bulk of this reduction, although mutton

exports (81 tonnes, down 40 per cent) also fell. Australia’s major export item to Hong Kong in 1983/84 was fancy meats (3358 tonnes, up eight per cent). Chilled beef and veal exports (172 tonnes, up two per cent) and lamb exports (306 tonnes, up 94 per cent) also

increased. Meat exports to the Philippines fell by 35 per cent to 2251 tonnes. Australia’s main export item, beef, decreased to 1954 tonnes, down 25 per cent compared with 1982/83.

Fancy meat exports totalled 296 tonnes, down 59 per cent. Exports to the Philippines have been minimal since November 1983, reportedly due to a shortage of foreign exchange being made available for import of meat products.

European Economic Community The escalating cost of supporting agriculture in the EEC brought about a combination of increased funding and cost-cutting measures in the 1984 budget. There were, however, no measures adopted to curtail significantly the

Community’s growing surplus in meat production, particularly beef. Higher EEC beef production in the face of generally mediocre demand in domestic and

export markets depressed beef prices in the EEC during 1983-84. Consequently, intervention stocks of beef increased to 323 000 tonnes at June 1984, from 266 000

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tonnes the previous year. The beef “ mountain” was expected to grow even more rapidly in the coming year, and introduction of milk quotas was expected to increase dairy cow slaughterings. Australia has expressed concern over the impact on world markets of the disposal of surplus beef, as subsidised EEC beef exports (including live cattle) in

1983 reached 575 000 tonnes carcase weight, second only to Australia. Third-country access to the EEC beef market was reduced for 1984. The “Balance-sheet” scheme for processing beef has been set at 50 000 tonnes bone-in equivalent in 1984, down from 60 000 tonnes in 1983. The

GATT and high quality beef quotas remained at the previous year’s levels. Exports of beef and veal to the EEC in 1983­ 84 declined for the third year in succession. Total beef and veal exports of 4181 tonnes were down 34 per cent on the previous year’s level (6331 tonnes). The United Kingdom remains by far Australia’s major EEC market for beef (3890 tonnes), with exports of predominantly boneless hindquarter primals entered under the high quality beef quota. In contrast to the overall decline, exports of chilled beef increased 43 per cent from 1035 tonnes in 1982-83 to 1484 tonnes in 1983-84. Buffalo exports to the EEC in 1983-84 totalled 1902 tonnes, up nine per cent on the

1982- 83 level. All exports were to West Germany and were made in the six months to December 1983. Voluntary restraint agreements which limit the volume of exports of the major sheepmeat and goatmeat suppliers to the EEC were not renegotiated early in 1984 as scheduled.

Consequently, Australia had access for 17 500 tonnes carcase weight of sheepmeat and goatmeat for the year. Within the agreement, sensitive market arrangements limit Australian exports to France and Ireland. For 1984, the

EEC set Australia’s access to France unilaterally, at 500 tonnes, up from 450 tonnes in 1983. Mutton exports declined from 13 944 tonnes product weight in 1982-83 to 2203 tonnes in

1983- 84. This relates to the lack of demand in the first half of 1984 for mutton exports to Greece. Greece purchased a significant quantity of mutton (7809 tonnes) in the six months to June 1983, compared with 1026 tonnes of mutton in the six months to June

1984. However, Greece has remained the major market, taking 1243 tonnes (56 per cent). Exports comprised mainly frozen boneless trunks and carcases (1756 tonnes) and a small volume of frozen bone-in cuts (447 tonnes).

Australian lamb exports to the EEC in 1983­ 84 totalled 1556 tonnes (1982-83, 1581 tonnes). Major markets were the United Kingdom (727 tonnes), Benelux (435 tonnes) and West Germany (133 tonnes). The EEC remained Australia’s major offal market in 1983-84 taking 26 per cent of total exports, although the volume supplied to the

EEC declined to 9095 tonnes from 18 321 tonnes in the previous year. The United Kingdom took 56 per cent (5075 tonnes) of exports to the EEC with other major markets being France (2858 tonnes) and the Benelux countries (836 tonnes). During February/March 1984, a team from the Commission of the European

Communities made an initial inspection of Australian meatworks for compliance with EEC veterinary regulations. As from 30 April 1984, all meat entering EEC countries from Australia must have been prepared at an EEC approved works. In addition to disrupting exports temporarily, the listing of approved

works may reduce Australia’s long-term capacity to supply the EEC with certain items, such as offals.

Other Europe Other Western European markets accounted for 2377 tonnes of Australian meat exports in 1983-84, a drop of 29 per cent. Sweden remained the largest market taking 608 tonnes (495 tonnes beef, eight tonnes mutton, 104 tonnes fancy meats). Other markets were

Switzerland (484 tonnes), Cyprus (452 tonnes), Finland (263 tonnes), Malta (261 tonnes), Norway (248 tonnes), Austria (48 tonnes) and Portugal (14 tonnes). Major items exported were frozen boneless beef primals, frozen bone-in lamb cuts and frozen offals. Smaller quantities of frozen mutton, and chilled beef and lamb cuts were also supplied.

Eastern Europe and USSR Australian exports to Eastern Europe have been negligible since the 1970s. Countries in the region import manufacturing grade beef and, while there is potential for Australian mutton to supply part of this market, price competitiveness with subsidised EEC exports, the shortage of foreign exchange and increasing domestic supplies continue to be barriers to Australian trade. The USSR continues to be one of the world’s major importers of manufacturing grade meat, even though the domestic livestock sector has strengthened considerably in recent years. Australia’s shipments to the USSR have been declining for several years and none was made

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in 1983-84. Australia’s ability to supply this market, as with the rest of Eastern Europe, depends on price competitiveness. During 1983-84 the USSR made substantial

purchases of beef from the EEC and Argentina, and lamb and mutton from New Zealand, at prices well below Australian offer prices.

Israel An increase in meat exports to Israel during 1982/83 which saw a total of 714 tonnes was short-lived, with trade dropping to 512 tonnes. Beef and veal exports were nil, there being strong competition from South American suppliers. Of total exports (down

18.2 per cent), lamb contributed 495 tonnes, the balance being fancy meats.

Middle East Shipments to most markets in the Middle East declined considerably. The effect of reduced availability was compounded by

increased competition from EEC and South American suppliers in nearly all segments of the market. There were no sales of meat to Iran, which in the previous year had taken

25 486 tonnes of mutton. Nor were there any shipments to Iraq, Egypt, Lebanon or Syria. Saudi Arabia remained our largest market, taking a total of 16 314 tonnes (down 40 per cent). This comprised 4634 tonnes of beef and veal (compared with 12 868 tonnes the previous year), 2509 tonnes of lamb (3020 tonnes) and 3110 tonnes of fancy meats (5358 tonnes). Mutton exports increased slightly to 6067 tonnes from 5950 tonnes. The two major markets in the United Arab

Emirates — Abu Dhabi and Dubai — also recorded lower shipments. Exports to Abu Dhabi totalled 5575 tonnes compared with 6156 tonnes the previous year. Most of this

decrease was accounted for in declines of beef, veal and lamb. However, mutton exports rose from 514 tonnes in 1982/83 to 610 tonnes. Exports to Dubai fell from 15 390 tonnes in

1982/83 to 11 285 tonnes. Again, this decline was evident in beef and veal (from 2312 tonnes to 970 tonnes), in lamb (8715 tonnes to 7212 tonnes) and mutton (3546 tonnes to 1593

tonnes). Shipments to Kuwait dropped 23 per cent from 2980 tonnes to 2269 tonnes, the decline being most noticeable in beef and veal. There

was a slight increase in lamb shipments to Kuwait to 683 tonnes and in mutton exports to 1098 tonnes. The record of exports to Jordan showed a decline in all categories to 197 tonnes.

Exports to Bahrain also dropped, from 1341 tonnes to 875 tonnes. This decline was most

evident in the beef and veal category which fell from 481 tonnes to 203 tonnes. The market for Australian meat in Qatar declined with exports totalling 384 tonnes. This compared poorly with 602 tonnes in

1982/83. Again, the major decrease was evident in beef and veal (with exports being 72 tonnes compared with 165 tonnes) and mutton (195 tonnes, compared with 323

tonnes). This decline, however, was partly offset by a small increase in lamb shipments from 46 tonnes to 92 tonnes. Oman was the only market in the Middle

East to which increased exports were recorded. Total exports were 4395 tonnes compared with 4044 tonnes. Mutton exports were 3948 tonnes compared with 3489 tonnes

in 1982/83. Even though total Australian meat exports to this region remained much the same as the last fiscal year, beef and veal exports increased

slightly while goatmeat, lamb and fancy meat exports decreased slightly.

Market intelligence and industry liaison The Commercial Services Section maintains liaison with all sectors of the meat and livestock industry. Through a reciprocal

information flow the section is able to assist producers, exporters, importers and other involved parties. In return these parties provide Corporation staff with market

intelligence which can be consolidated and used in serving the objectives of the Corporation as a whole. Through its weekly publication, Market Notes for Livestock and Meat, the Corporation

provides pertinent and up-to-date information on individual markets, meat and livestock prices and prices in importing countries. Additionally, circulars and trade enquiries are

sent to all licensed exporters in order to keep them aware of importing countries’ requirements, as well as any new enquiries by foreign meat importers.

The section provided briefing papers for a number of Corporation delegations, including a visit to Algeria (to conclude a protocol agreement), Egypt and Iran, and for AMLC officers at the Australia/Japan beef negotiations.

A number of delegations from overseas buying countries visited the Corporation during 1983/84. The Commercial Services

Section, in conjunction with other sections of the Corporation such as the Economics Section, provided background briefings for these groups.

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Staff travel In 1983 M r Len Spencer, Director of the Marketing Division, travelled with a Corporation delegation to the Middle East. The delegation visited Algeria, Egypt, Iran and the Gulf States and had discussions with government officials and traders. In Algeria the AMLC Chairman, M r R.G. Jones, signed a protocol agreement with Algerian meat importing authorities. M r Spencer and M r Tim Keif, Commercial Officer, visited Papua New Guinea in August

1983. They talked with Government officials, importers, local traders and shipping company officials. In May 1984 M r Steve Martyn, who has been in the North American regional office for the past three years as a marketing officer, was appointed senior commercial officer and was due back in Australia in the latter part of 1984.

Trade disputes During 1983/84 the Corporation was involved in 77 trade disputes. Of these, 39 utilised the Corporation’s overseas staff to inspect and report on product in dispute. The majority of these complaints were speedily resolved.

Export monitoring Another responsibility of the section is the control and monitoring of all chilled sheepmeat exports, chilled beef to the USA and, until November 1983, grain-fed beef to Japan.

Approval was granted during 1983-84 to export 10 655 tonnes of chilled lamb; of this total 9100 tonnes were shipped to the Middle East, 545 tonnes to the USA, 276 tonnes to the Pacific Islands, 272 tonnes to Japan, 214 tonnes to Europe, 158 tonnes to Canada and 88 tonnes to Asian markets. A total 213 tonnes of chilled mutton was also approved for export to Asian and Middle Eastern destinations. Approvals were issued for the export of five tonnes of chilled beef to the

USA. Approvals were issued to export 307 tonnes of grain-fed beef to Japan from July to November 1983. After this date the

responsibility for the monitoring of grain-fed beef exports to Japan was transferred to the Export Inspection Service.

Meat promotions in overseas markets Placing Australia’s meat products on display in overseas markets has always been a significant feature of the AMLC’s promotional activities. It is considered important that Australia’s beef and veal, lamb, goat, mutton and fancy meats be presented at trade displays and promotions worldwide,

especially at those displays where competing suppliers are also represented. Product for these displays is obtained by personnel in the Commercial Services Section who also arrange transportation. A variety of meat has been displayed this year, including grain-fed beef, chilled and frozen beef primal cuts, manufacturing beef items, chilled lamb, goat and boneless mutton packs. Product was promoted at 22 separate venues in Korea, Japan, the Middle East and Europe. Some events for which product was obtained included the banquet given by the Australian Prime Minister on the occasion of his visit to Japan in January; the ANUGA Trade Fair in Cologne, West Germany in October; the AMLC’s annual promotion at Tokyo and Osaka, Japan in October; the MEFEX Exhibition in Bahrain in February; Food and Hotel Asia in Singapore, April; and Foodex, Japan in March.

Livestock Services The Livestock Services Section is responsible for activities covering domestic and overseas promotion of Australian livestock, livestock exports and any area of production or

marketing where the AMLC can assist our livestock industries. The Corporation plays an active role in the export of sheep, cattle, buffalo and goats. All livestock exporters must be licensed by the AMLC and each licence application is carefully evaluated by Livestock Services on the basis of expertise and competence. All licensees are required to abide by regulations and instructions issued from time to time by the Corporation.

Quality assurance Most exports of livestock for breeding and selected consignments of livestock exported for slaughter are inspected under the AMLC quality assurance programme. Quality assurance officers ensure these export consignments match the buyers’ specifications and are of a standard suitable for export. As part of its quality assurance role, the AMLC is from time to time requested to assist by providing information relative to disputes. The degree of success is indicated by the way in which most disputes are quickly and amicably settled. With the agreement of the Departments of Trade and Primary Industry the AMLC, as sole distributor, passes on all overseas livestock trade enquiries to all relevant licensed organisations. These are received

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from various sources, such as overseas trade commission posts, AMLC overseas offices or through direct contact with overseas importers. The Livestock Services Section collates, verifies when necessary, and circulates

:hese enquiries to licensees. There were 116 individual trade enquiries from 37 countries circulated during the review period.

Market development and promotion Livestock Services staff travelled through the South East Asian, Asian and Middle Eastern markets promoting Australian livestock and monitoring the progress of livestock industries within these countries. They travelled to

Korea, Hong Kong, Saudi Arabia, Bahrain, Singapore, Malaysia, Indonesia and the Philippines. Staff inspected livestock imported from Australia in their new environments and discussed their progress with importers and local officials. For the third year, the Corporation staffed a stand at Saudi Agriculture ’84 held at Riyadh, the largest agricultural exhibition in the Middle East. The stand engendered strong interest and was regarded as highly successful by those participating. Livestock Services and regional staff, headed by the Regional Director, Middle East area, were accompanied by livestock exporters.

Promotional publications The second edition of the Handbook of Australian Livestock was completed during the year. It is available from all AMLC offices

and trade posts world wide. Two additional brochures, Australian Temperate Cattle Breeds and Australian Goat Breeds, were in advanced stages of production. Demand for all publications has been consistent particularly from overseas. Domestic demand has also been very strong especially from schools, agricultural colleges, universities and other agricultural teaching establishments where, for instance, the Handbook of Australian Livestock is now regarded as a basic reference on livestock breeds.

AMLC Lotfax Now in its fourth year of operation, AMLC Lotfax monitors nationally the numbers of cattle on feed in commercial and farmer opportunity feedlots. The monthly survey, which directly contacts all major feedlots and beef cattle extension officers in selected districts, has continued to attract strong interest during the past year.

Identification of lot-fed cattle AMLC, through the Livestock Services Section, is working closely with the Australian Lotfeeders’ Association (ALFA) to assist the lot feeders voluntarily self-regulate the

minimum standard of quality that can be described as “grain fed”, particularly for local market sales. The use of purple tail-tags for identification of saleyard animals meeting these criteria has begun. Purple strip brands for carcase and cut identification are being developed.

Statistical service — livestock exports The section continues to prepare national statistics on the export of livestock from Australia. Statistical reports on the industry, which are published during the month after shipment, are in strong demand from all industry sources.

Advice to overseas governments During the year, the Indonesian and Korean Governments have sought advice from the AMLC regarding specifications for livestock imports. Consultations were held with exporters involved in these regions and a

range of practical alternatives has been supplied to each of these governments to the benefit of the industry.

Industry briefings to overseas visitors The AMLC is constantly liaising with overseas importers and officials to provide them with background and specific technical knowledge on Australian livestock. Instructional visits, farm tours and briefings are organised, where appropriate, for foreign government representatives, importers, and other interested groups. When considered necessary for better understanding, key officials are brought to Australia to gain first hand experience of our industry.

Industry liaison Advice is provided to producer and industry bodies on a variety of issues ranging from livestock marketing to export promotional development. The Manager, Livestock Services, Mr. Lloyd Beeby, spoke at a number of seminars and conferences during the year on topics related to the livestock export industry. The AMLC has co-operated throughout the year with various government and industry bodies. Livestock Services staff have been included on committees and attend meetings at which policy relating to a number of industry activities has been developed. These include livestock exports, improvement to

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existing livestock marketing systems and the development of new and better systems of livestock marketing, livestock handling and animal welfare. Staff have also been involved in the development of codes of practice relating to areas such as animal welfare and livestock exports.

Animal welfare A submission encompassing all areas of animal welfare important to the AMLC, from on- farm practices to livestock exports, was prepared in conjunction with the AMLC Animal Welfare Committee for the Senate Select Committee on animal welfare. Livestock Services staff were assisted in this task by Mr. Frank Shaw, a veterinarian from the CSIRO. An AMLC animal welfare officer has been appointed with the object of monitoring developments in Australia and overseas.

Shipping and Transport Services Shipment of Australia’s meat and livestock to overseas markets represents a significant cost to industry, about $400 million during the period under review. This was 15-20 per cent of the income from export sales. Understandably, the Corporation, together with industry, continues to be concerned at the magnitude of our transport costs and appreciates the need to ensure continued availability of regular and efficient shipping services. With this in mind, the Corporation, through its Shipping Committee and Shipping and Transport Services, continues to be involved in research, analysis and negotiation on shipping and other transportation arrangements, used in delivering product from the farm gate in Australia to the final destination overseas. There has been a considerable downturn in world trade generally with a resultant decline in earnings by most shipping lines. Unfortunately, the inability, or in some cases the unwillingness, of certain carriers to rationalise services to equate better to cargo flows, has resulted in over servicing of exporters’ needs. This has led lines and conferences to ask for freight increases in keeping with their requirements rather than exporters’ needs.

A further concern is the expansion of certain conference membership either through the entry of new members or absorption of non­ conference carriers as ad-hoc conference members. This is achieved through use of

industrial muscle or, as it is referred to by some lines, “the signing of accords between conference and non-conference lines”. The Shipping Committee again achieved significant freight reductions to North America with designation arrangements for the 1984 shipping year. In addition, a milestone agreement was negotiated by the Industry Negotiating Committee with the Australia to Europe Shipping Conference which resulted in a box rate for all meat products with no bunker or currency surcharges to apply. The agreement in the European trade firmly supported industry’s desire to rid freight rates of the obsolete encumbrances represented by bunker and currency surcharges. Bunker costs have now been stable for a number of years ancj. therefore retention of that surcharge is indefensible. In addition, the burden of currency variations should not be placed solely with the shipper and it would be more equitable for the carrier to bear more of such commercial risk. The Australian Shippers’ Council has acknowledged that viewpoint and is now also taking steps to achieve elimination of those surcharges.

Service discussions and freight negotiations The Shipping Committee held freight rate and service discussions with designated lines serving North America. In other trades, the Corporation took part in freight negotiations through the Industry Negotiating Committee (INC) or the Australian Shippers’ Council (ASC). '

North America Following detailed analysis of current shipping arrangements and discussions with industry representatives regarding future shipping requirements and service conditions, the

Shipping Committee decided to advertise in the Commonwealth Gazette for submissions from container lines interested in seeking designation from the Corporation to carry Australian meat exports to North America. Discussions were arranged on 17 and

18 October with those container lines which had made submissions to the Corporation, thereby ensuring that the lines could satisfy the Corporation as to their ability to service all conditions required for designation. The following lines were designated to service East

Coast North America from 1 December 1983 to 30 November 1985: ANL/ACTA (Pace Line) ABC Containerline

Atlanttrafik Express Service

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Columbus Line The Bank & Savill Line* Freight rates prescribed by the Corporation to East Coast North America for the 1984 shipping year reflected a decrease of 9.54 per cent on the base rates which applied for the

1983 shipping year and a reduction of 24.96 per cent on the previous AMLC maximum rates. Designation arrangements for East Coast North America included specific performance requirements on centralisation and, for the first time, rates set to this destination were maximum/minimum rates. For the shipping year starting 1 December

1984 a five per cent increase on those base rates applying during the 1984 shipping year was agreed. For West Coast North America the following lines were designated for the period

1 December 1983 to 30 November 1985:

Columbus Line EAC Lines “K ” Line P A D. Line The Bank & Savill Line* The new base freight rates to West Coast North America for the 1984 shipping year reflected a reduction on previous rates of 9.45 per cent and a 20.46 per cent reduction on the

maximum rate set by the Corporation for the previous shipping year. Rates to WCNA were set as maximum rates.

UK/Europe The Industry Negotiating Committee met the Australia to Europe Shipping Conference

(AESC) and achieved a settlement breaking new ground — a box rate for all meat types which would include CAF and BAF elements. It established a box rate of $4050 for all

frozen meat products other than carcase mutton (which remained unchanged at $3862.06 per FCL). This was a decrease in freight rates of up to 38 per cent. Shipments of chilled product and consignments destined

for Scandinavia, Alexandria and Malta attracted additional freight charges. An LCL minimum charge of $2300 applied to all destinations and the agreement spanned two years, with the second year incorporating a 2.5 per cent increase on all freight rates.

♦From 1 April 1984, designation transferred to the Shipping Corporation of New Zealand (trading as “Australia New Zealand Container Line”) following its purchase of The Bank Savill Line.

Japan/Okinawa/Korea From November 1983 to June 1984 several meetings were held between the INC and representatives of the Australian Northbound

Shipping Conference (ANSCON). Although the INC provided ANSCON with details to support its application for a reduction in freight rates, no agreement was reached.

Freight rates operating in the trade continued at the 1983 levels. The accords established between ANSCON and non-conference operators in these trades

have virtually formalised an extended conference in terms of freight rates although vessel scheduling is still an independent process for non-conference lines.

In August the service from Western Australia, previously operated by Knutsen Line, was undertaken by a consortium of Lines comprising Knutsen, “K ” Line, NYK and

M.O.L. Although rates of freight in these trades remained static, the Corporation pursued two specific items with ANSCON to achieve

reductions: the conference conceded a variation in formula for mixed meat items which was estimated to save shippers in excess

of $200 per TEU and a reclassification of salted beef to fancy meats also led to a significant freight reduction.

Singapore/West Malaysia/Indonesia On 18 May 1984, freight rate negotiations were conducted between representatives of the

INC and the conference. For the second year in succession negotiations concluded in a stalemate, with the conference unilaterally applying a five per cent increase effective from

1 July 1984 for all meat and offals, other than meat in cartons for which rates were not increased. Southern Shipping Lines relinquished their agency for the Malaysian International

Shipping Corporation, which was transferred to Orient Shipping Services Pty. Ltd.

Hong Kong/Taiwan/Philippines Freight rates in these trades remained at a standstill but an approach by the Corporation

resulted in a reduction of 27.83 per cent in freight rates for mince meat when they were re-classified to align with the rates for boneless beef in cartons.

Middle East Gulf The freight structure in this trade has remained basically unaltered since the beginning of 1981. The conference has expanded and now Blue Star Line and OCL

have been joined by ScanCarriers and N.Y.K. Line.

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The Gulf area has been affected by the Iraq- Iran war which by the end of the financial year had expanded to involve merchant shipping trading on the western side of the Gulf. The conference therefore announced the implementation of a “War risk surcharge” to apply from 1 July 1984.

Shipping and transport services Duties and responsibilities of Shipping and Transport Services complement and support Corporation and industry needs for transportation of Australia’s meat and livestock exports. This extends all the way from the point of production in Australia to

the place of delivery in export markets. Shipping and Transport Services undertakes research and analysis, and works in conjunction with industry to provide the Corporation with practical information and advice on current transportation methods. This includes consideration of costs, efficiency and suitability, and identification and assessment of new methods and options. The section maintains close liaison with shipping and transport organisations, Government and semi-Govemment agencies, exporters and importer representatives. There is also active participation with industry organisations such as AM EFC/M EA CG and related organisations such as the Australian Shippers Council, the International Cargo Handling Co-ordination Association and the Australian Institute of Export.

Industry liaison The formation of the Industry Negotiating Committee (INC) has proven to be a positive and beneficial extension of industry and Corporation policy on transport of product. The Manager, Shipping and Transport

Services, Mr Brian J. Memagh, is a member. Shipping and Transport Services continues to I assist exporters in areas such as freight rate advice, chartering, airfreight and other areas associated with packaging, distribution and transportation. During the year M r Memagh attended industry meetings in Perth, Brisbane, Devonport, Launceston, Hobart and Melbourne at which the Corporation’s policy on shipping and transport has been discussed and developed.

Publications In response to a request by industry, a monthly Shipping and Transport Information Newsletter was instituted in February, This contains freight rate information and topical comment and advice on shipping and transport matters.

Australian Shippers Council The Corporation maintains its membership of j the Australian Shippers Council (ASC). This is an association of commodity exporting organisations committed to securing efficient, economical and adequate outward liner shipping services for Australian exporters. It is the only national body representing the interests of non-bulk shippers.

Mr Brian Memagh, Manager, Shipping and Transport Services, right, and a works official standing in a

refrigerated container discussing the stowing of frozen product consigned to Japan.

Page 62

ψ ------------------------- \

AUSTRALIAN MEAT & LIVE-STOCK CORPORATION

x__________ y

Advisory Committee to

the AMLC

for Market Development

and Promotion of

Sheepmeats

Australian Lamb

Promotion Committee

Advisory Committee to AMLC for Market Development and Promotion of Sheepmeats In May 1982 the report of the Australian sheepmeat study mission to the Middle East was presented to the Australian Government. The mission, comprising representatives of livestock producers, meat exporters and unions, as well as departmental officers, visited the area at the request of the

Australian Government to investigate prospects for expanding sales of sheepmeat, as distinct from live sheep, to the Middle East region. The decision of the Government to send the mission had followed discussions on the live sheep export trade held between the former Minister for Primary Industry, M r P.J. Nixon, and representatives of trade unions. Following the release of the report, a series of industry meetings was held to consider the findings of the mission. It was agreed to establish a special market development fund (under the auspices of the AMLC) to promote Australia’s sheepmeat carcase trade, especially in the Middle East and to form an industry committee to advise the Corporation on expenditure from the fund. The Sheepmeats Market Development and Promotion Fund is financed by a contribution from sheep producers through a two-cent levy on all sheep and lambs slaughtered and a matching dollar for dollar contribution from the Commonwealth

Government. The special levy came into effect on 1 October 1982. The Government’s contribution is for a three-year period. The committee comprises two AMLC representatives (one exporter, one sheep producer), three livestock producer representatives, one exporter/processor, an ACTU nominee and two Government representatives (one each from the Departments of Trade and Primary Industry). Members of the committee are shown at the front of the annual report under Corporation members, consultative groups and committee members. The committee met eight times during the year.

During the year the committee orchestrated a positive programme of sustained market development and promotion activity for Australian sheepmeat. While emphasis is placed on the Middle East market, the geographical area for consideration has been extended to include any market (including the

domestic market) exhibiting sufficient potential for effective market development and promotion expenditure. The Australian sheepmeat export trade has been under considerable pressure with intense competition from EEC and New Zealand offering subsidised product on a generally declining global market. Further pressure has been applied by the presence of South American countries competing in the Middle Eastern region. The combined effect has been an alarming depression in world sheepmeat prices. The effects have not been felt anywhere more severely than in the Middle East region, a particularly price-conscious market, which experienced an economic recession and reduced income from oil export. Under the circumstances, the committee has had to explore all avenues in developing its programme for effective expenditure. To this end, reports were requested from AMLC overseas offices and the Department of Trade on the state of various markets and the potential for Australian sheepmeats. In addition, project proposals for domestic and export markets were (and still are) invited from industry organisations and are constantly reviewed. To date approximately 100 project proposals have been received, each being judged on its merits for financial support. The development of new sheepmeat products suitable to the convenience/fast food trades has been one aspect under continual investigation. Several innovators in this field have been invited to meet the committee. In addition, several research organisations have tendered projects to undertake product development work. Disappointingly, the majority of applications in this field to date have either been too loosely framed to warrant support or lacking in a concrete marketing programme to carry the product concepts through to commercial implementation. In view of this, the committee is investigating procedures for new product development and marketing in its own right.

Middle East market Halal film The services of Film Australia have been retained for the production of a film to promote Australian mutton and Iamb in the Middle East. The film, to be entitled Islam in Australia, will illustrate the Islamic way of life

in Australia while highlighting the hygienic standards of Australian meatworks and the fact that all meat for the Middle East market

Page 64

5 produced according to the strictest Muslim 1 equirements. Research, including travel to the Middle East nd South-East Asian countries to determine

he most suitable format and presentation of he film, has been completed. The research roncluded that a “hard sell” film on Vustralian halal slaughter would have limited opportunity for screening in the Middle East. Consequently it was decided that a iocumentary approach be adopted. \ script prepared by Film Australia has been •eviewed by the committee, AMLC, the 3xport Inspection Service and the Australian Federation of Islamic Councils. A number of suggested amendments has been incorporated. I n view of the sensitive nature of the film, the revised script has been circulated to all

Muslim bodies in Australia certifying halal, 'or final approval. Meanwhile, some preliminary footage has been shot. It is envisaged that the film will be used as an adjunct to future promotion campaigns in the Middle East and prove to be a useful tool in

reassuring consumers on Australian halal procedures.

Promotion of chilled and frozen sheepmeats in the Middle East A major advertising campaign was conducted in Saudi, Kuwait, Bahrain, Qatar, Dubai, UAE and Oman from December 1983 to May

] 984 with committee funds. The campaign was developed by Intergraphics, a leading advertising agency in the region, in conjunction with the AMLC Regional Office. The campaign involved advertising in magazines and television with supporting point-of-sale material distributed to retailers, wholesalers and importers. The objectives were to create a favourable image for

Australian sheepmeat highlighting nutritional aspects, hygienic production, halal slaughter, quality and consistent supply to generate loyalty at both trade and consumer levels for

the product. Objectively assessing the effectiveness of the campaign is difficult given the heightened competition from other supply sources, escalation of the Iran-Iraq conflict and a general downturn in economic activity during

the period in which the campaign was run. Despite the prevailing adversities, mutton i exports from Australia were maintained although lamb exports decreased. Consumer

response to a free recipe booklet was most encouraging and the campaign has been reported to have been effective in maintaining

consumer awareness among the target audience during a difficult period.

The market for chilled sheepmeat appears to offer the greatest potential for increasing exports to the region. However, authorities in several countries impose strict entry and expiry conditions to the exclusion of chilled

product transported by sea. In an attempt to obtain Kuwait’s agreement to extend its entry period, trial air shipments of chilled product at 20, 30 and 40 days after packaging were arranged. The trial allowed Kuwaiti importers and authorities to evaluate the product, examine shelf life and become

familiar with appearance and handling procedures. The result of the first trial was disappointing, with a number of bags losing vacuum. Consequently, a code of practice and a quality

assurance programme is being developed by the Corporation. A further trial was arranged in conjunction with the Western Australian Lamb Marketing

Board and the exercise repeated. Following significantly improved condition of product, Kuwaiti authorities agreed to extend the entry period to 45 days (for trial purposes only) to evaluate chilled product by sea.

Funds have been allocated to underwrite a trial sea shipment, but the exercise is being held in abeyance until packaging problems have been overcome.

Visits to Australia by Kuwaiti authorities and representatives of the United Arab Emirates armed forces. Funds were earmarked to facilitate a proposed visit by Kuwaiti authorities for inspection of Australian slaughter facilities, vacuum packaging procedures and inspection standards. Discussions were to be held with technical experts in Australia to reinforce efforts being made to obtain an extension in expiry regulations for chilled product in

Kuwait. An invitation for a goodwill visit was also extended to representatives of the United Arab Emirates armed forces to take place later this year.

Asian market Promotion in Japan Following encouraging reports from the AMLC Director North Asian Region on the potential of lamb exports to the Japanese market, the committee allocated funds for a concerted market development and promotion campaign there.

C hilled vacuum packed telescope carcases to Kuwait

Page 65

Advisory Committee to AMLC for Market Development and Promotion of Sheepmeats In May 1982 the report of the Australian sheepmeat study mission to the Middle East was presented to the Australian Government. The mission, comprising representatives of livestock producers, meat exporters and unions, as well as departmental officers, visited the area at the request of the Australian Government to investigate prospects for expanding sales of sheepmeat, as distinct from live sheep, to the Middle East region. The decision of the Government to send the mission had followed discussions on the live sheep export trade held between the former Minister for Primary Industry, M r P.J. Nixon, and representatives of trade unions. Following the release of the report, a series of industry meetings was held to consider the findings of the mission. It was agreed to establish a special market development fund

(under the auspices of the AMLC) to promote Australia’s sheepmeat carcase trade, especially in the Middle East and to form an industry committee to advise the Corporation on expenditure from the fund. The Sheepmeats Market Development and Promotion Fund is financed by a contribution from sheep producers through a two-cent levy on all sheep and lambs slaughtered and a matching dollar for dollar contribution from the Commonwealth

Government. The special levy came into effect on 1 October 1982. The Government’s contribution is for a three-year period. The committee comprises two AMLC representatives (one exporter, one sheep producer), three livestock producer representatives, one exporter/processor, an ACTU nominee and two Government representatives (one each from the Departments of Trade and Primary Industry). Members of the committee are shown at the front of the annual report under Corporation members, consultative groups and committee members. The committee met eight times during the year. During the year the committee orchestrated a positive programme of sustained market development and promotion activity for Australian sheepmeat. While emphasis is placed on the Middle East market, the geographical area for consideration has been extended to include any market (including the

domestic market) exhibiting sufficient potential for effective market development and promotion expenditure. The Australian sheepmeat export trade has been under considerable pressure with intense competition from EEC and New Zealand offering subsidised product on a generally declining global market. Further pressure has been applied by the presence of South American countries competing in the Middle Eastern region. The combined effect has been an alarming depression in world sheepmeat prices. The effects have not been felt anywhere more severely than in the Middle East region, a particularly price-conscious market, which experienced an economic recession and reduced income from oil export.

Under the circumstances, the committee has had to explore all avenues in developing its programme for effective expenditure. To this end, reports were requested from AMLC overseas offices and the Department of Trade on the state of various markets and the potential for Australian sheepmeats. In addition, project proposals for domestic and export markets were (and still are) invited from industry organisations and are constantly

reviewed. To date approximately 100 project proposals have been received, each being judged on its merits for financial support. The development of new sheepmeat products suitable to the convenience/fast food trades has been one aspect under continual investigation. Several innovators in this field have been invited to meet the committee. In addition, several research organisations have tendered projects to undertake product development work. Disappointingly, the majority of applications in this field to date have either been too loosely framed to warrant

support or lacking in a concrete marketing programme to carry the product concepts through to commercial implementation. In view of this, the committee is investigating procedures for new product development and marketing in its own right.

Middle East market Halal film The services of Film Australia have been retained for the production of a film to promote Australian mutton and lamb in the Middle East. The film, to be entitled Islam in Australia, will illustrate the Islamic way of life

in Australia while highlighting the hygienic standards of Australian meatworks and the fact that all meat for the Middle East market

Page 64

is produced according to the strictest Muslim requirements. Research, including travel to the Middle East and South-East Asian countries to determine the most suitable format and presentation of the film, has been completed. The research concluded that a “hard sell” film on Australian halal slaughter would have limited opportunity for screening in the Middle East. Consequently it was decided that a documentary approach be adopted. A script prepared by Film Australia has been reviewed by the committee, AMLC, the Export Inspection Service and the Australian Federation of Islamic Councils. A number of suggested amendments has been incorporated. In view of the sensitive nature of the film, the revised script has been circulated to all Muslim bodies in Australia certifying halal, for final approval. Meanwhile, some preliminary footage has been shot. It is envisaged that the film will be used as an adjunct to future promotion campaigns in the Middle East and prove to be a useful tool in reassuring consumers on Australian halal procedures.

Promotion of chilled and frozen sheepmeats in the Middle East A major advertising campaign was conducted in Saudi, Kuwait, Bahrain, Qatar, Dubai,

UAE and Oman from December 1983 to May 1984 with committee funds. The campaign was developed by Intergraphics, a leading advertising agency in the region, in conjunction with the AMLC Regional Office. The campaign involved advertising in magazines and television with supporting point-of-sale material distributed to retailers, wholesalers and importers. The objectives were to create a favourable image for Australian sheepmeat highlighting nutritional aspects, hygienic production, halal slaughter, quality and consistent supply to generate loyalty at both trade and consumer levels for the product.

Objectively assessing the effectiveness of the campaign is difficult given the heightened competition from other supply sources, escalation of the Iran-Iraq conflict and a general downturn in economic activity during the period in which the campaign was run.

Despite the prevailing adversities, mutton exports from Australia were maintained although lamb exports decreased. Consumer response to a free recipe booklet was most encouraging and the campaign has been

reported to have been effective in maintaining consumer awareness among the target audience during a difficult period.

The market for chilled sheepmeat appears to offer the greatest potential for increasing exports to the region. However, authorities in several countries impose strict entry and

expiry conditions to the exclusion of chilled product transported by sea. In an attempt to obtain Kuwait’s agreement to extend its entry period, trial air shipments of chilled product at 20, 30 and 40 days after packaging were arranged. The trial allowed

Kuwaiti importers and authorities to evaluate the product, examine shelf life and become familiar with appearance and handling procedures. The result of the first trial was disappointing, with a number of bags losing vacuum.

Consequently, a code of practice and a quality assurance programme is being developed by the Corporation. A further trial was arranged in conjunction with the Western Australian Lamb Marketing

Board and the exercise repeated. Following significantly improved condition of product, Kuwaiti authorities agreed to extend the entry period to 45 days (for trial purposes only) to evaluate chilled product by sea.

Funds have been allocated to underwrite a trial sea shipment, but the exercise is being held in abeyance until packaging problems have been overcome.

Visits to Australia by Kuwaiti authorities and representatives of the United Arab Emirates armed forces. Funds were earmarked to facilitate a proposed visit by Kuwaiti authorities for inspection of Australian slaughter facilities, vacuum packaging procedures and inspection standards. Discussions were to be held with technical experts in Australia to reinforce efforts being made to obtain an extension in expiry regulations for chilled product in

Kuwait. An invitation for a goodwill visit was also extended to representatives of the United Arab Emirates armed forces to take place later

this year.

Asian market Promotion in Japan Following encouraging reports from the AMLC Director North Asian Region on the potential of lamb exports to the Japanese market, the committee allocated funds for a concerted market development and promotion

campaign there.

C hilled vacuum packed telescope carcases to K uwait

Page 65

The opportunities to promote lamb as a relatively inexpensive healthy red meat were evident. However, per capita consumption of lamb in Japan is extremely low, with very few retail outlets handling the product, so effective development of the market requires a programme to educate the trade on lamb preparation and influence consumer buying habits. The campaign was launched in July 1983 and additional funds were allocated to the programme in February 1984. The programme involves regular seminars for butchers, housewives and the hotel/restaurant trade; in-store cooking demonstrations; cooking seminars and the production of such material as menu cards, posters, consumer booklets, a trade newsletter Lamb News and in-store demonstration manuals. These activities are complemented by AMLC funding of media advertising and the recently developed Australian Lamb Manual (in Japanese) which deals with all aspects of lamb from preparation to pricing. This has always been seen as a long term project. However, results after one year have been highly encouraging. The number of supermarkets stocking Australian chilled lamb has increased from only a handful to 67, with several other large chains showing interest. Exports of chilled and frozen lamb to Japan for the year to 30 June, were almost double those of the previous year. Exports of chilled lamb have increased significantly. Numerous restaurant chains are using more sheepmeat dishes on menus and tie-in promotion activity is being conducted.

Mutton promotion — Korea Korean Cold Stores (KCS) have expressed an interest in manufacturing canned mutton products for domestic consumption and export. Funds have been approved to allow the Corporation to provide KCS with technical expertise and samples of canned product for testing and evaluation by Korean officials. Quantities of mutton are also being provided to allow KCS to develop canning procedures. It is anticipated that in return, Australia will obtain exclusive rights for supply of mutton to Korea for this project, when manufacturing of canned products begins.

Mutton promotion — Taiwan Following the highly successful beef recipe booklet promotion staged by the Corporation in Taiwan, the committee has provided funds to run a similar campaign for mutton, promoting it as table meat.

New product development and consumer research New mutton products The services of David McKinna et al Pty. Ltd. were retained to undertake the first stage of a new product market research and

development programme for a number of mutton products including corned legs, smoked and corned legs, butterfly steals, roasting legs, cubed mutton and mutton mince. The research involved a series of group discussions with housewives who were shown the products in both the cooked and uncooked state and asked to taste each of the products. The aim was to determine which products had market potential and, through consumer feedback, the broad direction of future research and marketing strategies for those products. Cubed mutton, corned legs, smoked and corned legs and mutton mince showed best market potential although it was evident they required further technical development and fine tuning before further research is conducted. The study also indicated that the development programme would need to examine thoroughly the aspects of product specification, rigid quality control, brand and product names, packaging and labelling.

New boneless lamb cuts The Corporation used money from the Sheepmeat Market Development Fund to conduct trials on a boneless cutting technique for lamb. Developed in Britain, it yields appealing, waste-free cuts. A video was produced as a teaching aid for the retail trade. In addition, a report on the trials was widely circulated to industry and work was being finalised on specifications for the cuts. The new cuts stimulated considerable interest within the industry and several other projects were funded by the committee to introduce the new cuts to the retail trade and consumers. The Rutherglen Research Institute was allocated funds to investigate farm management procedures to produce the large lean lambs most suitable to the new techniques. Aspects being examined include the use of growth stimulants, feed regimens, breed types and ram lambs. Pre- and post­ slaughter management practices are being investigated and extensive consumer tasting exercises conducted. A trial market of the new cuts was organised in conjunction with Safeway supermarket stores for later in 1984. The committee was to

Page 66

provide Safeway with promotional material and information on sales was to be monitored by Safeway. A follow-up survey was planned to gauge consumer reaction.

And the South Australian State Lamb Committee was developing an extension programme to promote the new cuts and techniques to the retail trade in SA. This was expected to provide a blueprint for similar programmes elsewhere.

Other research and promotion Deodorisation of mutton The Western Australian Department of Agriculture is investigating a method of deodorising mutton through a process of vacuum steam distillation which has worked successfully on mutton mince. Machinery to allow commercial application of the process is being developed. The project has stimulated interest in Japan where the odour of mutton is an impediment to market development.

Lambslide television commercial campaign The Lambslide advertising campaign was screened nationally in the spring of 1983. The campaign was initiated following early signs of weakening lamb prices and the prospect of a heavy lamb season. The commercials were designed to strengthen the annual AMLC spring lamb campaign by providing retail push at crucial times during the season, highlighting the excellent value of lamb at the time. Feedback from the retail industry indicated the commercials were highly successful.

Funds were allocated to repeat the campaign in 1984 with some adjustments.

Australian International Food Exhibition A stand was booked for a display of new sheepmeat products to be held at the International Food Exhibition in October

1984.

The Australian Lamb Promotion Committee In October 1983 the Producer Consultative Group recommended to the Corporation that

a separate levy of 10 cents a head on all lambs slaughtered be introduced to finance a special lamb promotion fund. It was also recommended that it be administered by a committee representing the lamb industry and

that in the implementation of the levy,

provision be made for lamb promotion strategies operating at state levels. The recommendation came as a result of long standing and growing concern among lamb producers at the depressed state of the lamb industry, particularly saleyard prices, decreasing returns to producers, falling consumption and insufficient funds available

to the Corporation to promote lamb effectively on a year-round basis. Underlying the recommendation was

recognition of the need to develop new lamb products in an effort to penetrate the convenience/fast food trade, an expanding market in which the lamb industry had failed to capture a significant share. There was also a need to upgrade the overall image of lamb among consumers by developing appealing new cuts and promoting the positive aspects of versatility and nutrition.

The Corporation conveyed the recommendation to the Minister for Primary Industry who approved the levy, effective from 1 February 1984. The Australian Lamb Promotion Committee was formed in March 1984 under Section 16 of the Australian Meat and Live-stock

Corporation Act 1977 (as amended), to advise the Corporation on expenditure from the special promotion fund. The committee comprises four lamb producers, two retail butchers, one processor and one Corporation member, presiding as chairman. It has met on four occasions.

Objectives of the committee At the committee’s inaugural meeting, the following objectives were set: • to increase per capita consumption of

lamb

• to increase returns to the producer. With 80-85 per cent of lamb consumed domestically, it was agreed that the majority of funds would be channelled towards

domestic promotion and product development work. However, the importance of developing markets in overseas countries has not been overlooked and any market exhibiting sufficient potential for effective promotion and market development activity will be considered. The following breakdown for expenditure will be observed by the committee as a broad guideline:

70 per cent — domestic production 20 per cent — product development and research 10 per cent — overseas market development and promotion.

Page 67

It is projected that annual income will be in the vicinity of $1.5 million. In view of the substantial amount of industry funds now available for promotion of lamb

through the Corporation, the Sheepmeat Market Development Fund and the Lamb Promotion Fund, co-ordination of promotion activity between the three groups is essential if maximum benefit is to be obtained. To this end, the AMLC Director, Publicity Services, is consulted on all promotional matters. However, the committee has indicated that it wishes to expand its base of promotional innovation and the services of independent organisations may be sought.

Spring lamb promotion The committee initially directed most of its efforts towards formulating a promotion campaign to complement and strengthen activity planned by the Corporation for the

1984 spring lamb season. In conjunction with the AMLC Publicity Division, a national campaign entitled Rediscover Lamb was developed. This was to include double-page colour magazine advertising and provision of point-of-sale

material to retail outlets around Australia. The advertising was designed to highlight versatility and nutrition and contain a variety of recipes and an offer of a free Better Lamb Cooking booklet to respondents. There was also to be a concerted effort to

push lamb at point of sale, using lamb recipe pads and a total of 2.5 million tear-off colour recipe leaflets. The committee also undertook to meet the printing costs of all point-of-sale material supporting the Lambslide TV campaign orchestrated by the Sheepmeats Advisory

Committee. A campaign proposed by the Tasmanian Meat Industry Advisory Council involving a lamb recipe contest was endorsed in principle. The council had sought a financial contribution towards advertising for the contest which was to be held in October 1984. The committee also decided to monitor and evaluate all promotional activity to gauge cost effectiveness. It was felt the results would

enable objective planning of future promotion strategies.

Lamb as a convenience food One of the major reasons for declining lamb consumption on a per capita basis in Australia has been the change in consumer buying habits towards convenience type products and the fast food trade. The food market in recent years has developed into a highly competitive ι 1 and commercialised arena with consumers being offered a diverse range of options. It is evident that alternative lamb products, as

distinct from the traditional carcase cuts, need to be developed if lamb is to capture a share of the convenience food market. To increase both lamb consumption and returns to the producer, the end value of the product, as perceived by the consumer, must be increased. Work initiated by the

Sheepmeat Advisory Committee into the development of new cutting techniques for lamb to yield attractive, easy-to-prepare and waste-free cuts has attracted considerable attention from the industry and is being followed with interest by the Lamb Promotion Committee.

In an attempt to identify innovations for lamb j products in the industry, the Committee has requested AMLC state managers to survey their states, with assistance from MATFA and j state producer organisations, for any new concepts that could be developed, promoted !, or commercialised with assistance from the

Committee. The survey should provide a starting point for a register of companies handling new lamb products, or currently involved in such product development, for future reference. The Committee has asked AMLC Publicity

Services to investigate the possibilities of joint promotion activity with manufacturers of microwave ovens and Webers (a barbecue- type appliance) involving, for example, the provision of a complimentary microwave lamb cooking manual/recipe booklet to purchasers of new appliances. An extension of the AMLC recipe booklet series Meat Masterpieces, on microwave Iamb cooking, is also being investigated.