May 19, 2004

US Beef Consumption Pushes Prices Upwards

Domestic beef consumption in the US has continued to defy expectations, with local demand pushing fed-cattle prices to a record high of 90 cents per pound for the month of May.

Analysts are surprised at the strong performance; given the sector supplies many markets currently closed to US exports, after the discovery of mad cow disease last year.

Chief market analyst at Meat and Livestock Australia Peter Weeks says it is a reminder of just how domestically focused the US beef industry is.

"Only 10 per cent of the production gets exported.

"Ninety per cent gets consumed domestically, and when your domestic market is going as strong as the USA's at the moment, that's going to dominate the scene; and that's certainly what's happening."