October 16, 2007

US manufacturing beef reach lowest price levels

Grinding beef prices in the US continue to fall and are now at the lowest levels for the year, according to Meat and Livestock Australia.

Sales have been slow due to controversy surrounding the E. coli incident and the impact of economic concerns on fast food demand. Another problem is the renewed offloading of US cows, with cow slaughter currently 10 percent higher than at the same time last year.

The price of imported 90CL grinding beef fell a further US2¢ this week, to US$1.25 per pound, the lowest price for 2007. When added to the continuing rise in the A$, this is making the US a much less attractive market for Australian manufacturing grade beef.