AUSTRALIA EXPECTS RISE IN MEAT EXPORTS TO MIDEAST
Australia expects meat and livestock
exports to the Middle East to maintain an upward trend this
year, managing director of the Australian Meat and Livestock
Corp, Peter Frawley, said.
    He told Reuters an improvement in the economic climate and
less competition from the European Community should lead in the
Gulf area to higher beef sales, which dropped from 33,000
tonnes in 1980 to just 2,300 tonnes last year.
    "In the last three to four months there has been a
resurgence of inquiries," he said.
    Frawley is on a Gulf tour which will also take him to Saudi
Arabia, the United Arab Emirates and Kuwait to assess market
potential.
    On beef exports, he said a 50 pct drop in European
Community intervention stock in the past 12 months would help
Australian sales.
    The fall meant the EC was not as aggressive in these
markets, where the Australian trade was the natural source of
supply, and Australia was "now back in," Frawley said.
    He said there was a debate in Australia as to whether the
Middle East market for livestock, which accounts for two-thirds
of meat export value to the area, would be maintained.
    He believed the trade would remain with a continuing demand
for fresh meat.
    The number of live sheep shipped last year to Saudi Arabia,
the biggest single market, was 3,214,159 compared with
2,939,226 in 1985. The numbers shipped to the United Arab
Emirates and Bahrain fell, however.
    Frawley said the slackening in demand in the Gulf had been
offset by other Arab countries around the Mediterranean.
    Other than livestock, Australia's overall meat sales to the
Middle East rose to 72,374 tonnes in 1986 from 52,403 tonnes
the previous year, largely due to the sale of 25,790 tonnes of
mutton and lamb to Iran.
    Australia sold 9,824 tonnes to Iran in 1985 after being
virtually excluded by New Zealand competition for several
years. Frawley said the 1986 sale contract had included a
barter provision, but Iran had paid in full in cash.
    Negotiations with the Iranians for 1987 shipments were
currently under way, with Iran again seeking credit and barter
provisions, he said.
    Frawley said there had been a tremendous growth in demand
for chilled lamb in the last four to five years and he
predicted this would continue.
    "The Middle East, and the Gulf in particular, is now
Australia's largest market for lamb, chilled and flown in.
Australia is in an ideal position to provide the supplies if
the market is willing to pay a premium for a fresh, young
product," he said.
 REUTER
