00:00I think definitely we welcome this move. Any reduction in tariffs is good news. As an Australian
00:11beef exporting nation, we are obviously proponents of rules-based trade. We export some 75% of
00:19what we produce here. So ultimately anything that reduces the cost of trade or our product
00:24going into any country is good news.
00:26Obviously, the President was pretty adamant that he would keep tariffs in place. But
00:32with your experience, did the move surprise you?
00:36Look, I guess we were somewhat surprised. It's a little hard to pick what's happening in
00:42this space at the moment, as we all know. But look, I think in some ways, not a surprise.
00:48Broadly, the reality is that there is and continues to be huge demand from the US. Their cattle herd
00:55is at a 70-year low. So domestically, they have a real supply issue. And I think the
01:01value of our trade to the US last year was worth $4 billion. At the end of October, we're
01:06already at 370,000 tonnes. And I think we're currently shipping about 140,000 tonnes per
01:13month. So, you know, the demand from the US is accordingly very strong. They are our most
01:19important beef trading partner have been and will remain so, hopefully.
01:23So what does this removal of the tariff mean for those in the beef industry and for your
01:29business?
01:30Well, as I said, you know, we continue to see strong demand for our products. You know,
01:34we are a highly, I guess we're highly diversified when it comes to where we place our beef around
01:40different countries around the world. You know, we're exporting to some 80, over 80-odd countries
01:45now. So, you know, we'll continue to see strong demand there. I think domestically, you know,
01:51season has had an impact here in Australia. And we've seen, obviously, some very dry conditions
01:57in the south, which obviously placed some extra supply onto the market. And in the north, certainly
02:04around where I am now in central Queensland and big parts of Queensland, big parts of our beef
02:09producing areas, we've seen a very late break and certainly people still are, you know,
02:15seeking that early rain. So we would hope that, you know, once we do get the widespread rain
02:20and there is a resulting grass growth, we'll see, you know, upward pressure placed on prices.
02:27Given that Australia's tariff for beef was much lower than other countries, we were at 10%,
02:32but countries like Brazil were around 50%. Now that beef is exempt altogether, have we lost
02:39a bit of a competitive edge there? Look, you know, I'd say where the chips fell around this tariff
02:46issue, you know, perhaps we comparatively did have a little bit of an advantage. Again, we're not,
02:54you know, I wouldn't say that that advantage has been taken away at all. As I said, the fundamentals
02:59are here. This is a reflection of our longstanding critical relationship with the US and, you know,
03:06across multiple fronts, not just restricted to beef and trade.
03:11Have these moves, Adam, changed with the first the imposing of the tariffs and now the dropping of
03:17them? Have they changed the way that you do business or others in the industry?
03:22Not as such. You know, Australian beef cattle producers, we're fairly adept at sort of rolling
03:27with the punches when it comes to, you know, trades, markets, whatever happens there. But I
03:33would say that, you know, in this space, we sort of throw around, you know, trade impacts, percentages
03:38of this and that. And look, the reality, as I said, of the demand out of the US is that they've had some
03:43very, very tough conditions. They're now in a herd rebuild. But I think it's, you know, our thoughts
03:49are sort of with with fellow US beef producers, our ranchers over there, obviously the tough times
03:55they've had meant that they had to sell off a lot of their animals. And for any beef producer that
03:59cares deeply for their livestock and their land, that's a that's a very tough thing to go to go
04:04through. They're obviously in a beef beef in a herd rebuild. And so, yes, they will be receiving some
04:10good livestock prices. But the reality is that a lot of them wouldn't have essentially have a lot of
04:14cattle to sell. So we wish them good seasons in green grass. And, you know, that that goes for
04:20all of our beef cattle producers around the world who ultimately work hard to put a steak on your plate.
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