Consumption of beef down in Australia as costs bite

The price of beef has shot up steeper than any other protein in Australia over the past year, rising at more than triple the rate of chicken according to a new report. Meat and Livestock Australia’s June Cattle Industry Projections revealed beef prices were up 12 per cent in the first quarter of 2022 compared to the same time last year. The price rise, coupled with reduced availability of fresh meat, had led to a drop in domestic consumption. “All proteins saw a decline in volume sales versus this time last year due to decreasing household purchasing, with beef and chicken seeing the largest declines in frequency,” the report said. “Beef and lamb prices have been increasing at a higher rate compared to other proteins.” However, beef was the only protein to see marginal growth in dollar sales, up 1.3 per cent year-on-year in the first quarter of 2022. “These rising prices of beef have contributed to beef’s value share remaining stable compared to two years ago and increasing 2.1 per cent compared to last year in retail,” the report said. “Continuing the trend that’s been seen over the past two years, shoppers are decreasing their shopping trip frequency but spending more on each occasion.” The report found labour shortages and ongoing supply chain disruption caused by COVID-19 had reduced the availability of fresh meat domestically in the first quarter of the year. Mince and sausages remained the two most popular beef cuts sold, accounting for more than half of retail sales. “In this latest quarter, these two cuts have made the greatest contribution to volume decline but continue to make the greatest contribution to dollar growth for beef,” the report said. “Scotch fillet and corned/silverside beef saw the largest value declines this last quarter.” Meanwhile, demand for premium Australian beef was growing in Thailand, with frozen beef exports up considerably compared to the same time last year. This could be attributed partly to Thailand’s “sizeable but gradually declining” domestic beef industry coupled with a “flourishing affluent population” hungry for beef. “Although local beef is seen as cheaper and easy every day, Australian beef is perceived to be a high quality and superior product,” the report said. “The Australia-Thailand Free Trade Agreement provides a significant competitive advantage for Australia over South American and North American suppliers, who face a 50 per cent tariff. “Australia is well-positioned to meet growing demand for premium quality beef in Thailand.” Australian boxed beef exports to Indonesia grew 28 per cent in 2021 and were 5 per cent higher than pre-pandemic volumes in 2019.