September 26, 2008

Meat and Livestock Australia (MLA) warns that consumers will soon be paying more for beef and other meats.

Beef retail prices have increased 3 percent on-year, chicken prices rose 11 percent and pork up 7 percent due to higher grain prices, seasonal conditions and strong export demand, MLA said, adding that beef prices are expected to move up to 4-5 percent.

MLA analyst Peter Weeks said supermarket prices are likely to keep rising on continued strong demand for beef cattle, and consumers' buying habits would be changed as a result.

With household budgets being pressurised, consumers will go for more mince and lower-priced cuts instead of fillets and higher-priced cuts, Weeks said.

"And we're starting to see that, we've been seeing that over the last six months. It's already a trend and it could get a bit worse yet."