November 15, 2007

 

Australian beef price jump may start by March 2008

 

 

Beef consumers are advised to enjoy its relatively cheap prices as a sharp rise is expected by March next year.

 

High feedgrain prices due to drought and strong demand for ethanol have already hit chicken and pork prices. 

 

Farmer groups have issued a dire warning of "a major readjustment in food prices" and have called for an inquiry into meat prices, saying farmers are not benefiting from rising prices on supermarket shelves.

 

Ashmore butchery owner Brad Patton said lamb and beef were at their cheapest for about three years because farmers were dumping stock, which had become too expensive to feed.

 

But he added supermarket beef and lamb prices did not reflect the current high supply of stock.

 

Since about July or August lamb and beef prices have been going back to 1998 levels but it will be a different story by March, he said.

 

Patton said beef and lamb prices will increase by 30 to 35 percent but more than that on the retail level.

 

Many farmers were not putting replacement cattle or sheep back on their properties, which would lead to a shortage next year and drive up prices, he said.

 

Australian Beef Association chairman Brad Bellinger said the price paid to producers on the east coast had dropped 18 percent, while meat prices in supermarkets were unchanged or had risen.

 

However, given the global price hikes for fuel, energy, fertiliser, labour and interest rates, there will be a major readjustment in food prices, he said.

 

Significant increases in commodity prices for dairy products and grains and flow-on effects are yet to be seen on livestock, meat products, and eggs.