---
title: Evaluating the benefit of the red meat processing sector in regional Australia 2020
description: Understanding the socio-economic value of red meat processing to regional Australia
image: https://blog.ampc.com.au/hubfs/custom-Custom_Size___cattle-1149693_1280.jpg
---

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# Evaluating the benefit of the red meat processing sector in regional Australia 2020

Posted by [AMPC Blogger](https://blog.ampc.com.au/news/author/ampc-blogger) on Nov 11, 2020

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The need to provide government and key stakeholders with the most recent figures, along with AMPC's requirement for updated figures to help shape insights and communications, triggered this report. A deeper investigation into the industry’s contribution is of benefit for a greater understanding by stakeholders, and fosters a consumer and policy environment that is supportive of the industry.

Updated from 2016, the report reveals a decline in overall contribution of the industry at both national and state levels, however this is in line with industry trends and reflects decreased slaughter numbers, meat production and growth in livestock prices. Nevertheless, the sector remains a valuable contributor to the Australian economy.

The industry as reflected in the report is broad, covering abattoir works including slaughter, boning, freezing and packaging meat and subsequently has a flow on effect with sectors including transport, equipment manufacture and research. The benefits and impacts may vary at times however the stimulus provided to other industries, not just those within the agriculture, forestry & fishing sector, sees the red meat processing industry contribute 1.1% of national gross industry value add, 0.8% of household income, and 1.1% of full-time equivalent (FTE) employment.

With a total of almost 121,600 FTE jobs and $19.7 billion in industry value added, research also reveals for every $1 in industry value added generated in the sector it is estimated that an additional $2.60 is supported across the entire economy. The report supports the historical view of the red meat processing industry as both a highly significant employer and boost for all state economies.

The research was conducted by *SG Heilbron Economic & Policy Consulting*, with data collected from processing facilities, the Australian Bureau of Statistics and the AMPC’s 2016 report on the same topic.

The figures, by state, tell a detailed story, in particular in Queensland with a contribution of 1.9% of employment and in Tasmania with 1.4% of the state total in employment. Likewise, the industry value added (when flow on effects are taken into account) contributes 1.9% of the state total in Queensland and 1.5% in Tasmania.

The specific breakdowns revealed by the report:

***New South Wales***

- Employment (FTE) – 23,000 (0.7% of the State total);
- Industry value added – approximately $3.5 billion (0.6% of the State total); and
- Household income – approximately $1.3 billion (0.4% of the State total).

***Queensland***

- Employment (FTE) – 40,300 (1.9% of the State total);
- Industry value added – approximately $6.5 billion (1.9% of the State total); and
- Household income – approximately $2.2 billion (1.3% of the State total).

***South Australia***

- Employment (FTE) – 7,700 (1.1% of the State total);
- Industry value added – approximately $1.2 billion (1.2% of the State total); and
- Household income – approximately $0.4 billion (0.8% of the State total).

***Tasmania***

- Employment (FTE) – 2,700 (1.4% of the State total);
- Industry value added – approximately $0.5 billion (1.5% of the State total); and
- Household income – approximately $0.2 billion (1.2% of the State total).

***Victoria***

- Employment (FTE) – 23,700 (0.8% of the State total);
- Industry value added – approximately $3.6 billion (0.9% of the State total); and
- Household income – approximately $1.4 billion (0.6% of the State total).

***Western Australia***

- Employment (FTE) – 7,200 (0.6% of the State total);
- Industry value added – approximately $1.3 billion (0.5% of the State total); and
- Household income – approximately $0.4 billion (0.4% of the State total).

***Australia -*** The total impact of the red meat processing industry, including flow-on effects, nationally in 2018-19 was as follows:

- Employment (FTE) – 121,600 (1.1% of the national total);
- Industry value added – approximately $19.7 billion (1.1% of the national total); and
- Household income – approximately $7.1 billion (0.8% of the national total).

 Topics: [red meat](https://blog.ampc.com.au/news/topic/red-meat), [research](https://blog.ampc.com.au/news/topic/research), [Economics](https://blog.ampc.com.au/news/topic/economics), [labour](https://blog.ampc.com.au/news/topic/labour)

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