Beef prices in Australia set to fall
The beef market is set to face a bigger downward pressure after red meat production increased and cattle prices dropped. After three years on each year cattle price rises, Australian cattle prices are lower than they were 12 months ago. Last month, eastern Australian states’ slaughter rates consistently tracked ahead of the previous year for the first time since 2014.
According to Meat and Livestock Australia, despite rising prices and recent health trends that have seen a swing away from red meat, we remain a nation of beef lovers. However, at this point in time, Meat and Livestock Australia remains conservative in its prediction of price drops. Despite the softening in the market, Australian cattle prices are unlikely to drop back to the levels of 2013.
MLA is, however, saying that the current trends leading to the fall in prices is likely to remain throughout 2017 at least, which will have a “significant impact on price”. While there is pressure domestically on Australian beef producers, MLA expects a fifth consecutive year of beef exports surpassing one million tonnes.