February Meat Market Update
Meat and Livestock Australia (MLA) have released their industry projections for 2017. Below is a summary of their report:
- The Australian beef industry will more than likely continue the first half of 2017 in much the same fashion as last year – tight supplies, robust restocker demand and the subsequent likelihood of a strong young cattle market. As the year progresses though, beef production is expected to slowly start increasing again and, as this eventuates, some downward pressure is likely to be placed on the market.
- Expectations are for a further 3% decline in Australian cattle slaughter in 2017, to 7.1 million head. Despite forecasts for slightly heavier cattle, Australian beef production is forecast to follow suite and decrease 3% to 2.1 million tonnes cwt. Australian beef and veal exports are likely to correlate with the lower beef production and are estimated to decline a further 5% in 2017. While this is expected to be the third consecutive fall, it will still be the fifth highest export volume on record.
- The number of cattle on feed is forecast to remain constrained by the still very high feeder cattle prices, which closed 2016 up 80% from the pre-surge average levels. Live exports will also continue to be challenged by the smaller pool of cattle (especially in the north), resistance from some markets at current price levels and continued uncertainty around import policies.
- The domestic market is showing some stronger signs and per capita beef consumption in Australia is forecast to rise slightly in 2017, edging close to 26kg per person.
- Moving onto prices, the Australian market is following a similar pattern to what occurred in America, although just 1-2 years behind. Once the U.S. market broke through its long-term average trading range, it took just over two years to hit a high, before taking 15 months to lose much of the gains. Encouragingly though, the U.S. has stabilised 38% above the previous level, which potentially indicates a new floor.
- Click here to watch the latest video summary featuring MLA’s Market Information Manager, Ben Thomas.
On special this month, we have taken the opportunity to launch a new foodservice cut. The Petite (Shoulder) Tender is one of the most underrated cuts of beef available. Amazingly tender, this cut, although small in size is big on value and flavour! The cut (#27524) is derived from the Chuck and being Grain Fed from the Riverina brand, you can be guaranteed of the quality. At $10.95 p/kg, it’s brilliant value and the grill menu options are endless!
On the steak front, our 300g Black Angus MSA Sirloin (#40097) at $34.49 p/kg is a great pick. Derived from a Black Angus bloodline dating back 100 years, this is a flavoursome, tender steak that will suit most hard-core carnivores.
For details on these and other great beef specials, check out our February specials here.
A sudden shortfall in livestock numbers due to a spike in demand from the U.S. has seen some prices start to firm up, on the back of Australia Day. This has affected some cuts such as Lamb Legs and Lamb Rumps which have all been in short supply moving forward. Luckily we did manage to secure more of the Sovereign Marinated Lamb Rump (#28587) at $18.99 p/kg. These are incredibly tender and succulent and would make a perfect mini roast, or grilled and sliced fine for an Asian inspired salad.
We also have a limited stock of Boneless Lamb Legs (#29151) which are good value at $9.99 p/kg.
Chinese New Year has come and gone and it seems as though demand was a little lower this year for pork items unlike previous years’ Pork Belly. Although with the continued hot conditions in most of the Eastern States, it’s a sure sign that livestock numbers are beginning to dwindle. The market remains fairly steady for now and the big turnaround this year is the situation of Pork Ribs. Pork Ribs of every type (except for shoulder), from the Middle are moving at lower than anticipated prices due to a lower demand.
To change things up a little, this month we are launching a NEW product which are Cooked and BBQ Marinated Pork Ribs from Hershells (#29426). These are convenient, ready to heat and eat Pork Ribs are sold chilled and not frozen. Each rib plate is individually packed in a foil retort pack and easy to handle which save you time and at the introductory price of $19.49 p/kg, will also save you money, so why not try a box today!
For all of the other specials for February, why not contact your MOCO representative today and meat up your menu!