October 29, 2007

Low US beef prices hurt imports

The situation in the imported beef market in the US last week has shown little signs of improvement as lower beef values continue to pull down sales of beef imports.

The price of US domestic 90CL boneless beef was quoted at 123.53US¢/lb (272US¢/kg) this week, the lowest price for US domestic lean beef for more than a year. This also reflects a combination of lower purchasing power, negative food safety news and increased supplies of domestic product.

While Australian lean beef prices to the US are just 4 percent lower than a year ago in US dollar terms, they are over 20 percent lower in A$ terms. This disparity has made trading between Australian packers and US buyers very difficult.