US market driving price again

摘要

PRIOR to the BSEoutbreak in the US in 2003 the Australian cattle market was largely driven by the price of the beef trim we exported to the US. After BSE appeared in the US, Australia experienced a beef boom led by the grainfed beef sector.Our grainfed beef replaced US beef in our major high value markets of Japan and Korea after US beef was banned on health concerns. Given that Australia was the only supplier to these markets, our cattle prices became more closely linked to export beef prices to Japan and Korea, and grain prices here. The US are regaining share in Japan and Korea, and grain prices have fallen, and our cattle market seems to be rediscovering its link with the price of beef trim exported to the US. During the last 10 yearsAustralia has exported on average 320,000 tonnes shipped weight (swt) of beef to the USA, with a large majority of this being frozen grassfed beef, and around half of it being manufacturing beef. Manufacturing beef is largely the low value trim which isreferred to in the US as grinding beef, as it is used in mince and hamburgers.