As you may already know, beef prices in Australia have recently increased. This is due to a few different reasons, including:
1. The shortfall in beef supply due to this seemingly never ending drought.
As a result we’ve seen the majority of secondary cuts increase in price by over 50%. In our industry, a cost price increase of 40c per kg is considered huge. This last increase in beef prices saw some cuts increase in price by $2.50 per kg. This regretfully has a flow on effect to you the consumer.
Currently Australia has about 27 million head of cattle. That’s about one third of what we used to have and those numbers are forecast to decline further. Just as a comparison, South America currently has 90 million.
Unfortunately, supply to our domestic (local) market inevitably gets pushed to the back of the queue. As supply continues to dwindle, prices will keep going up.
All this aside, this problem is a credit to the quality of Australian beef. We should be proud of what we’ve got and take the time to appreciate it when we eat it.