00:00The USA have launched an inquiry into imported sheep meat into their country.
00:03Some of the U.S. farmers have been complaining to the government that imported sheep meat is ruining their sheep
00:10sector.
00:10If we look at the history of what's been going on, back in the 1990s the U.S. industry started
00:16to decline.
00:17From 1990 to 1994 we saw a drop of about 24,000 tonne of U.S. production of sheep meat.
00:24And during that time Australian imports of sheep meat only lifted by 500 tonne, hardly replacing that decline.
00:31From 1995 to 2010 we did see an increase in Australian imports of around 23,000 tonne.
00:38And that's pretty much offsetting the decline from the earlier four years when the U.S. dropped by nearly 25
00:43,000 tonne.
00:44So Australia was then filling a gap that was created by the U.S. in decline prior to us even
00:49entering.
00:49And during that 1995 to 2010 period, the U.S. sector declined by a further 53,000 tonne.
00:57So the Australian increase was hardly even making up for the massive decline that had been seen.
01:02If we move forward to 2011 through to 2025, Australian imports lifted by 58,000 tonne.
01:09And during that period of time, U.S. production only dropped by a little over 6,000 tonne.
01:14So pretty much for the last decade or more, the U.S. sector has been pretty stable and Australia has
01:20been increasingly filling a supply gap.
01:23And indeed, if you look at Australian and New Zealand product, they're actually growing a market in the U.S.
01:30The average U.S. per capita consumption of sheep meat is about 500 grams a year per person.
01:37If we could grow that sector by increasing knowledge and awareness of sheep meat with the U.S. consumer,
01:43we could increase that, say, to one kilo over the next few years.
01:46That would be about 170,000 tonnes worth of extra imports coming in or potentially increase U.S. production.
01:53So I think the answer probably is the Australian and New Zealand imports, the quality and consistency,
01:58helping to grow the awareness and the consumption of sheep meat more broadly in the U.S.
02:05could benefit the U.S., could benefit Australia and could benefit New Zealand all at the same time.
02:10So hopefully this inquiry doesn't lead down the wrong pathway and Australia gets slapped with a punitive tariff
02:16because that would be a disaster for the Australian sheep and lamb sector.
02:20See you when you've got nothing on.
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