The price of beef is expected to soar in supermarkets this year, with experts warning a ‘rebuild’ phase in the cattle industry means Aussie’s will pay more for their meat.
Woolworths CEO Brad Banducci has warned of ‘volatile’ price movements for Aussie beef, with consumers to expect continued price increases at their local butcher.
Farming regions received heavy rainfall for the first time in several seasons last year, meaning farmers will be keeping more cattle on the newly-lush land.
Consumers can expect to pay more for Australian beef this year, as industry experts predict prices to continue to increase
While rainfall is above average and grass is plentiful, farmers will allow their herds to expand and rebuild, giving veal a chance to grow into beef, Mr Banducci told news.com.au.
The cattle industry has entered a rebuild phase after Australian numbers fell to their lowest in two decades last year.
Factors such as a smaller breeding base and severe drought conditions in the years before 2020 meant the rebuild is likely to be more gradual than previous ones.
‘This year represents uncharted territory for Australian beef producers’, Meat and Livestock Australia said in their Industry Projections report.
‘Improved seasonal conditions in southern Australia throughout 2020, and above-average summer rain in northern Australia during the 2020–21 wet season, are expected to produce an abundance of pasture in all major cattle producing regions, with the exception of parts of WA’, the report stated.
Farmers are expected to take advantage of greener pastures and retain breeding stock rather than offload them onto trucks, meaning slaughter levels will fall.
The breaking of the drought last year means Aussie farmers will take advantage of greener pastures and work to rebuild their herds, with slaughter levels to fall
The report predicts cattle slaughter will fall 3% to 6.9million head, with calf slaughter expected to drop by 7%.
The national cattle herd is predicted to increase by 2% to 25million head, with beef production for the year forecast to be 21 million tonnes.
As for international demand for Australian beef, the report indicates a 2% increase in export levels, with a predicted 1.1 million tonne in shipped weight to be sent abroad.
In 2020, the Covid-19 pandemic affected areas of demand for Aussie meat, due to market access issues and ‘a global drop of food service activity’.
As world economies recover from the impacts of the virus, exports are expected to rebound, with a forecast of 5% growth in global GDP in 2021.
Source: Daily Mail Australia | World News