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

Frozen Bone-In Beef

Meat

Australia

Published Mar 4, 2023

Tridge summary

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.

Original content

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 decline in the Australian dollar which has kept Australian prices competitive in the global market and, to some extent, protected prices from global conditions. International prices Brazilian heavy steer prices have been falling in US dollar terms since April 2022, with the fall in price broadly matching the decline in Australian heavy steer prices. This means that Australian cattle are retaining a premium over Brazilian cattle in real terms, ...

Source: Mla