By Jamie Martin
Recent market data shows a notable surge in Australian cow slaughter prices, driven primarily by heightened demand from the United States.
This increase is evidenced in the average price of saleyard cows, which recently reached 263c/kg, showing significant gains from the previous year.
Elders analyst Richard Koch points out that this trend is supported by strong export processing margins, motivating Australian exporters to ramp up their operations.
The robust demand for Australian beef in the US is further underlined by record lean beef prices, which have remained near US$380/cwt, a level comparable to the post-drought peak in 2014-15.
Despite these high domestic prices, imported lean beef from Australia continues to trade at a discount, creating a lucrative market opportunity for Australian exporters. This dynamic has led to a substantial increase in Australian beef shipments to the US, with volumes significantly higher than the previous year.
The Australian beef market benefits from a strong US dollar, which enhances the attractiveness of Australian exports. The competition in global markets, notably from Brazil and New Zealand, has also influenced market dynamics, although Australian beef continues to find strong footing in the US due to its quality and competitive pricing.
As the northern hemisphere moves past peak demand periods, the focus for Australian exporters shifts to maintaining momentum in major markets, with North Asian demand expected to play a crucial role in the coming months.
Photo Credit: gettyimages-erdinhasdemir
Categories: National