Preparing for the Future

In February 2022, the world was rocked following the invasion of Ukraine by Russian forces. While the immediate concern is for the ongoing humanitarian crisis within Ukraine, there is a secondary concern for global food security due to Ukraine’s role as a major exporter of grains and oilseeds.

Much of the work on the coming pages was undertaken before the invasion of Ukraine, and was therefore based on fundamentals of the beef sector in 2020 and 2021. 2022 has seen a seismic shift in beef markets globally, with Agflation now running at approximately 30%.

This steep acceleration in costs contributes to an overall feeling of uncertainty within the supply chain, and with businesses looking at significant cash losses in the coming year, many are apprehensive about what the future holds.

Instilling confidence over the coming months will be paramount to the industry’s survival, alongside critical interventions to enable liquidity through the supply chain.

The strategy’s steering group discussed delaying the publication of the strategy until greater stability returned. However, upon reflection, the group made the decision that the long-term fundamentals still stood, and that by reviewing the implementation plan in autumn 2022, the strategy could remain relevant and measured – helping steer the sector through the unprecedented challenge as we move forward.

The steering group therefore recommend the following actions that precede the strategy, bridging the period between the immediate challenges and the long-term investment required to meet the future opportunities.

  1. Stabilise the feed supply chain for primary producers in the medium term
  2. Stabilise and prioritise the fuel supply chain for essential industries
  3. Protect working capital availability to ensure that the red meat supply chain has enough liquidity to maintain operations through targeted intervention on input costs
  4. Develop and highlight knowledge exchange activities that help the supply chain reduce input use without compromising output