Customers in the hunt for possible choices to high-priced pork, lamb
2 January 2024
2 minute learn
Australian red meat manufacturing in 2024 is forecast to extend by way of 2% to 480,000 MT (CWE), from the upward revised 2023 estimate of 470,000 MT (CWE), in step with a contemporary US Division of Agriculture (USDA) International Agricultural Data Community (GAIN) file.
The fast expansion in pork and lamb costs, all the way through their quick provide whilst those sectors had been rebuilding their herd and flock numbers, has spawned an build up in customers in the hunt for lower price meat protein possible choices and has inspired expansion in red meat manufacturing in 2023.
The sturdy expansion in red meat manufacturing within the first part of 2023 is anticipated to drift into early 2024. On the other hand, just a small total expansion in red meat manufacturing is forecast for 2024 because of an expectation that decrease farm animals and sheep costs will filter out via to retail meat costs within the again part of 2023 and into 2024. That is expected to cause the onset of adjustment in red meat manufacturing.
Australia exports not up to 10% of the red meat that it produces, and it imports excess of it exports. Australian red meat manufacturing is strongly influenced by way of red meat import costs, in addition to festival from different primary meat protein assets. The principle competing meat protein assets for red meat are poultry, pork and lamb.
From 2019 on the tail finish of a multi-year drought when provide of farm animals and lambs for processing started to dwindle, and the 3 next years to 2022 when provide was once additional scale back whilst farm animals and lamb manufacturers had been rebuilding the nationwide herd and flock numbers, the cost of pork and lamb escalated.
All the way through the similar length, even if the cost of red meat higher it was once to a a long way lesser level than for pork and lamb, whilst the cost of poultry most effective very relatively higher. With this worth dynamic the intake of pork and lamb fell and was once substituted by way of higher intake of red meat and poultry. Australia produces way more pork and lamb than it consumes, so the to be had provide to the home marketplace isn’t a constraint.