September 24, 2007

Australian butcher meat prices lower, sales better

Australian meat prices in August remained steady mainly or below prices recorded the same time last year but sales had improved, according to data collected by Millward Brown for Meat and Livestock Australia (MLA).

Regular data collected from 100 butchers across Australia indicates that beef and chicken prices averaged 2 percent lower in August, lamb values 3 percent lower and pork prices 4 percent lower than the same month in 2006.

Responses revealed that 94 percent of butchers thought their sales of beef were "good" to "excellent", compared with 88 percent in August 2006. Only 6 percent reported "fair" or "poor" sales compared with 12 percent the same time last year. Lamb sales also followed a similar trend, with 80 percent reporting "good" to "excellent" sales ¨C seven percentage points above August last year.

Chicken sales were also better, with 83 percent of butchers surveyed noting "good" to "excellent" sales compared with 73 percent in August 2006. Pork sales were similar to last year, with the majority of respondents noting ¡®good¡¯ sales.

When it came to the satisfaction with the quality of meat, Meat Standard Australia (MSA) beef was a winner, with 92 percent of respondents stating that the quality was "good" to "excellent". Also, 79 percent of butchers rated the quality of lamb as "good" to "excellent", compared with 85 percent in August 2006. A greater percentage of respondents also noted "fair" or "poor" quality lamb, 21 percent compared with 14 percent the same time last year. The drought and high grain prices have affected the ability of many producers to finish livestock to required specifications. Satisfaction with the quality of all other meats was unchanged on responses noted last year.