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Opportunities for Australian beef exports

Rabobank’s Global Beef Quarterly Q2 2024 report forecasts Australian slaughter and production volumes will continue to increase sustainably.

The production volumes will increase going into the third quarter of 2024, witnessing a 17 per cent and 15 per cent increase year-on-year, respectively.

Independent chair of Sheep Sustainability Framework, Angus Gidley-Baird said the contraction in US production will provide opportunities for Australian exports.

“It also provides opportunities for Australian volumes into key Asian markets where the US is a comparable supplier to Australia,” said Gidley-Baird.

“Australian export volumes to the US were up 117 percent in April, and year-to-date volumes to the US are up 89 per cent.”

Though because export volumes to the US and US import prices have increased, this needs to be reflected entirely in Australian cattle prices.

“Cattle supply volumes in Australia, ongoing soft demand in Asian countries, and relatively full supply chains, we believe, are the reasons for not seeing prices transfer through,” said Gidley-Baird.

Regarding global pricing, Gidley-Baird said a two-speed cattle market continues to exist.

 North America is tracking close to record highs amid the contraction in local production, while other regions remain more subdued.

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