March 20, 2023

 

Australian cattle prices down, but shoppers unlikely to see cheaper steaks

 

Despite a near 40% drop in beef prices in Australia over the past nine months, shoppers are unlikely to see cheaper steaks at the butcher anytime soon, Australian Broadcasting Corporation reported.

 

Phin Ziebell, an economist from the National Australia Bank, said although the price drop may signal an end to continued food inflation, it is unlikely those savings will be passed onto consumers.

 

The fall in cattle prices has been attributed to an oversupply of cattle in Australia, a lack of capacity at Australian abattoirs to buy and process more cattle, and increased slaughter rates in the US.

 

But meat prices have been rising due to skyrocketing cattle prices during the pandemic, and ongoing issues with labour and supply chains adding to costs.

 

While the drop is good for consumers, it is the opposite for beef producers, who are already feeling the impact on their profits.

 

Elisha Beil, a business owner in Dalby, Queensland, said that the price of beef had not yet significantly decreased, adding that they keep absorbing price fluctuations because everything else is getting more expensive.

 

Customers were understanding of why prices were still so high, according to Beil, who made direct purchases from beef producers throughout the Western Downs.

 

Marty Frame, a beef producer from Darling Downs, said industry players were unprepared for the market.

 

He said the current dry weather was also forcing producers to sell their cattle.

 

-      Australian Broadcasting Corporation