November 19, 2007

Australian beef prices to US up but market remains flat

The price of Australian 90CL (chemical lean) cow beef to the US rose 3 cents this week, to 128.5 cents per pound including Cost Insurance and Freight (CIF) as imported beef supplies remain tight, according to Meat and Livestock Australia (MLA). Together with the slight fall of Australian dollar, this lifted exporter prices to the US by 6 percent, to 285 Australian cents/ per kilogramme, still 18 percent lower than a year ago.

But market for US manufacturing beef remains flat due to E. coli incidents as well as high fuel and other costs on consumer demand for ground beef and hamburgers. Also, US domestic cow beef supplies are high, as drought, rising costs and falling feeder cattle prices see cow calf operators liquidating herds, reports MLA.

The E. coli testing requirements by the US Department of Agriculture which is due early 2008 may disrupt exports to the US over the remainder of this year.