July Meat Market Update
It seems as though the Winter doldrums have hit hard in the industry. Cattle prices are beginning a slight softening with the EYCI closing at 64c/kg cwt. This is reflective of the drop in exports to the U.S. and more importantly a drop in domestic demand.
The MLA have reported that cattle prices, in contrast to the previous two years; have remained relatively stable so far in 2017. The Eastern Young Cattle Indicator has traded between 610c and 670c/kg cwt since it opened the year, and finished today at 641.50c/kg cwt. In fact, if cattle prices fail to find another gear and match 2016’s Winter price rise, the benchmark indicator may dip below year-ago levels for the first time since 2014.
Nevertheless, prices remain historically high and will continue to be underpinned by lack of supply. The physical market continues to be driven by restocker cattle, paying an 8-10% premium on comparable cattle to feeders and processors in the first half of June – in contrast to next-to-no premium or a discount throughout 2014 and 2015.
Traditionally, the current domestic drop in trade both in retail and foodservice mainly affects the steak cuts such as Striploin (Sirloin), Rump, Cube Roll (Rib Fillet) and Tenderloin (Eye Fillet). In comparison, roasting cuts such as Topside, Outside and Bolar Blade usually surge ahead in demand.
This year, there is a distinct lack of enthusiasm and most operators are reporting a drop in trade across the board. Blame it on what you like, (weather, school holidays, end of financial year); it seems as though consumers are becoming more discretionary with their spending habits when choosing to eat out or at home.
And so, to this month’s specials and we have taken advantage of a great seasonal offering of Beef Short Rib Plate (#28846) which is a 7-rib plate from Nolans at Gympie. These are fantastic as a low and slow smoked BBQ item or braise them down for a fantastic slow cooked item. AT$8.99/kg, these are sure to move quickly.
We also have Beef Striploin (#14851) from the Diamantina brand stable which is also a local product and perfect for cutting into steaks, or roasting. The product is Grain Fed and MSA rated. Terrific value at $17.95/kg. Get in now, before they’re gone.
For more details on these and other great beef specials, check out our July specials here.
Market pricing continues to remain at record highs, however there are signs that the market is softening ever so slightly, with good supplies of livestock numbers available. If all things pan out and offering numbers remain solid, there could be some price relief forthcoming, earlier than the anticipating spring.
Whilst we are still in a precarious position, we have managed to secure supply of Chilled Lamb Rumps, Cap Off (#25929) from South Australia. These are great value at $19.99/kg and extremely versatile for a mini roast, or a lamb stir fry.
Numbers being offered for slaughter are still very high and being reported at 30% higher than normal, year on date with most growers now in a position where they are offering more sows to process in order to reduce numbers slightly.
There’s still good value items such as Pork Ribs being offered this time of year, and we’ve decided to jump on the bandwagon with some great pricing on Pork USA Loin Ribs (#17931). Down to $10.95/kg, these are great for any grill menu and sure to be a hit. We are also offering KR Castlemaine Boneless Pork Legs (#26272) at $6.49/kg which are suited perfectly for any carvery or club roast.
For all of the other specials for July, why not contact your MOCO representative today or our friendly Customer Service team on 07 3375 2000 to meat up your menu!