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Table of Content

• Introduction
• Discussion
• Conclusion
• References

Introduction

This assignment showcases the diversification in the demand and supply of beef in the market of Australia because of the radical decrease in the production process. Export of beef is taken as one of the important industries that contribute significantly in the Australian economic growth. This report showcases the several features that caused the decrease in the production of beef in the nation at the time of year 2015 and which directly influence the business relating to the production of beef in the country of Australia. According to the data and information from Meat and Livestock Australia (MLA), it has been assumed that there would be reasonable decrease in the export as well as production of beef in the present and upcoming year.

Australia is having a position of a major exporter of various things like wheat, iron, beef, ore and machinery. Australia is considered to be a most efficient and successful producers in case of livestock. Also the country is taken as a world leader in case of exporting of red meat (Trostle, 2010). The given below characteristics cause the betterment in the production output measures of the country Australia.

• Growth rate of 3.1 percent in Gross Domestic Product in March, 2016
• A recorded inflation rate of 1.7 percent for the year 2015
• Real GD of $1.62 trillion for the year 2015
• $64,500 was the amount for the Per Capita Gross Domestic Product in the year 2015.

Discussion

The factors of demand influencing the market of beef in Australia will be discussed then the factors relating to its supply will follow and lastly the issue will be wrapped up by the conclusion.

Demand Analysis

According to the economists demand of the product can be influenced by several factors and same will be applied in case of beef in Australia. Several factors were there to influence the market of beef in Australia; some of them are as follows:

• Customer taste: Demand of beef depends on the taste of the customers. When people in Australia earn higher disposable income, they could afford to eat more beef in their respective meals. Australia is an emerging country and that’s why it is also having a quite enough demand of beef in it.
• Price and number of complimentary goods: In case of beef, the numbers of complimentary goods like sauce and vegetables for cooking the beef would not deviate although the price of the vegetables may have rise together with the beef (Kahn and Cottle, 2014).
• Price and number of substitute goods: When we talk about the body of a human, beef provides the carbohydrates, proteins and minerals to the body. Beef can be substituted by the crops like soybeans. However, it is a matter of fact that the soya bean’s price is also raising because of the unexpected drought in some nations in the past few years. Or we can say that people are less likely to attract towards to buy the substitute goods for beef.
• Income: People in every part of the world will intend to consume more beef in their meal when they are having higher disposable income. And in Australia the people are having a good disposable income and that result in high demand of beef in their meals (Peters, et. al., 2010).
• Expectations: Overall it is presumed that the beef demand in Australia will rise because of the rise of population in the country, raised average income in the market of Australia and more common and repeated usage of beef in the celebrations and festivals.

Supply Analysis:

According to the economists, the supply of product depends on various factors and it can be influenced by those factors and same will be applied for the case of beef in Australia. Several factors are responsible to influence the supply of beef in the market of Australia, in which some of them are as follows:

• Production Cost: The foremost cost of beef production is corps for poultries and staple food such as wheat, corn and barley. Over some of the past few years in Australia, the cost of feeding in terms of price has been raised due to the shortage of production and foreign exchange because of the natural disasters like flood and drought. The shortage of supply of food and raised population in developed countries just like Australia has forced some nations to control the amount of export in some nations.
• Number or suppliers: It is a matter of fact that the technology has played an important and significant role in improving the productivity and growth of industry of poultry because of the change in climate, industrialization and globalization. In other words we can say that there will be fewer people working on the cultivating the poultries to stabilize the supply of beef in the country of Australia (Krissoff, et. al., 2012).
• Producer’s expectations: Due to the regular and repeated natural disasters, expected global and new diseases for the animals rose in demand of food, it is expected that the production of beef will rise whereas the supply in relation to the beef will fall down.
• Profitability of the products in joint supply: The supply in case of products in the joint supply is falling. Their profitability fluctuates because of the diversification in the currency exchange and the quantity of harvesting.
• Profitability related to the alternative products: Crops having high amount of protein could be alternative products for beef. However it is a matter of fact that they could not substitute the beef totally in some or other cultures (Krissoff, et. al., 2012). Moreover, the supply of crops falling because of the increased population and natural disaster like draught and flood.

Conclusion

In terms of demand of beef in Australia, the raised population and the disposable income associated to them, raise usage of beef for the meal and festivals push the price of the beef to a record high together with the falling supply of beef in Australia because of the production of beef to natural disasters, decreased number of herds and also raised feeding cost.

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