The Australian chicken meat industry has reached a point of market maturity with intense competition resulting in a product trading in a commodity like manner. To date the industry has enjoyed total protection from international competition due to our disease quarantine policy. This protection has a high likelihood of being removed at some future time.
As such, the industry, and in this report Goodman Fielder Limited (GF) are at a crossroads with the importation issue and the low potential growth of the existing market. It is necessary therefore for GF to develop strategies and a proactive approach in order to maintain its competitive position.
In addition to a comprehensive literature review, personal interview, oral history and simple questionnaire techniques have been used with GF and industry personnel in Australia, Asia, United States, Canada and South America to present the study's foundation.
The report concludes that it is highly likely that the domestic market is unlikely to indefinitely remain in isolation. To maintain its competitive position GF needs to maintain a strong emphasis on cost reduction. There is some opportunity for export, however, the study supports the view that a multidomestic approach into Asia is appropriate either via a strategic alliance or independently and given the likelihood of eventual importation such an approach would provide the opportunity for GF to control the distribution of imported product in Australia.