Even as prices fall, Australian beef outperforms on the world stage

Australian cattle prices have continued to drop since the recent peak in November 2022, as concerns regarding global economic conditions grow alongside the expectation of higher supply in Australia. This has resulted in the Heavy Steer Indicator dropping by 24% to A351¢/kg live weight (lwt). There have been varying trends in other producing nations countries, however the premium for Australian cattle has been preserved despite the declines in price. Using data from MLA’s National Livestock Reporting Service (NLRS) and the US Department of Agriculture (USDA) to replicate the Brazilian Boi Gordo Heavy Steer Indicator, it’s clear that this shift – as well as cattle prices across major beef-trading nations generally – have been moving with local weather patterns and the broader economic environment. From a local peak in October 2022, Australian heavy steer prices have fallen 22% to US418¢/kg carcase weight (cwt). This reflects the fall in price of Australian cattle, but also a slight ...