Australian Beef prices expected to continue to remain strong – Rabobank Report
According to a recent ‘Beef Quarterly’ report by Rabobank, Australian cattle prices once again, rose to record prices in June 2016. This latest price increase was attributed to the recent heavy rainfall which affected areas such as New South Wales and Tasmania in June 2016.
Contrary to the international trend, Australian cattle prices are expected to remain strong through Q3 due to ongoing tight cattle supplies. Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank states that “volatility is a key theme across most markets at the moment. Seasonal conditions impacting Australia, along with the economy and exchange rates influencing Brazil and China, and market volatility impacting the US is creating a degree of uncertainty.”
What does Brexit mean for the Australian Red Meat Industry?
Whilst Australian beef prices continue to remain strong, Meat and Livestock Australia (MLA) states that “it is still too early to know what type of impact Britain’s decision to leave the European Union (EU) will have, as current trade between Australia and EU (including the UK) will continue as normal in the short-term, for at least two more years or more.”
According to MLA, the UK accounted for 64 percent of all Australian beef and sheepmeat exports to the EU over the past decade, with the overall value of Australian red meat exports to the UK in 2015 totaling to AUD $221.3 million (beef – AUD $120.5 million and sheepmeat – AUD $100.8 million).
As the preferred supplier of high quality red meat to the UK, there is significant long-term prospects for growth of Australian red meat exports, with the MLA continuing to advocate for a Free Trade Agreement between Australia and the EU.