… Australian beef exporters have a real battle on their hands in international markets, with the US (currently in the midst of a serious drought event) killing cattle at a dramatically elevated level. This has pushed a lot more US beef into international markets, at highly competitive prices… 

 

 

Weekly kill: Grids starting to buckle, under the weight of spiralling operating costs and US export pressure

 

Jon Condon, Beef Central (Australia)

21/06/2022

 

AFTER an unbroken sequence of ten weeks where there was little or no change in direct consignment offers from eastern states beef processors, the first signs of shakey ground emerged yesterday…

 

... Costs of all types have spiralled this year, as outlined in this earlier article on natural gas and electricity charges. Add fuel, transport, packaging and other cost rises, and processors are under some pressure, as reflected in this recent processor margin calculation.

 

“Costs have got that way now that we have had to re-think things,” one large Queensland export operator said.

 

Added to that, Australian beef exporters have a real battle on their hands in international markets, with the US (currently in the midst of a serious drought event) killing cattle at a dramatically elevated level. This has pushed a lot more US beef into international markets, at highly competitive prices.

 

Australia has had to adjust pricing, to maintain or defend market share, and that, too, is laced-into current slaughter cattle pricing decisions.

 

One large exporter described the international meat market at present as being in ‘disarray’, especially the US, Japan and China. “There’s a lot of it (meat) around in the global marketplace,” he said...

 

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https://www.beefcentral.com/processing/weekly-kill-grids-starting-to-buckle-under-the-weight-of-spiralling-operating-costs-and-us-export-pressure/