Australia’s processor cow indicator has reached a record high price as the United States ramps up imports of lean beef.<\/p>\n
Meat and Livestock Australia’s (MLA) national processor cow indicator has gone beyond 390 cents a kilogram for the first time and is up nearly 100 cents a kilogram on this time last year (an increase of 32 per cent).<\/p>\n
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The national processor cow indicator has reached a record high. (Supplied: Meat and Livestock Australia)<\/p>\n
MLA’s global supply analyst Tim Jackson said the cow market was running hot because the world was facing tight supplies of lean beef.<\/p>\n
“Around the world a lot of countries are short in terms of production of lean beef,” he said.<\/p>\n
“American cow slaughter has been falling for quite some time and in the first half of this year was down 10 per cent year on year.”<\/p>\n
At the Wodonga saleyards on Tuesday, bidding for heavy cows was “keenly contested” and reached up to $4.60 a kilogram.<\/p>\n
Meanwhile the “highlight” of the sale at Echuca this week were heavy cows reaching $4.74 a kilogram.<\/p>\n
US demand escalating<\/p>\n
In its latest market report, the US-based Steiner Consulting Group said tight supply was creating “ever escalating prices for lean beef”, with the US relying increasingly on imports from Australia.<\/p>\n
This is despite Donald Trump’s 10 per cent tariff<\/a>.<\/p>\n It said the US Department of Agriculture (USDA) was forecasting beef imports to reach 5.36 billion pounds (2.43 billion kilograms) in 2025, which was 15.7 per cent higher than last year.<\/p>\n “If this forecast proves correct, it would imply that beef imports in 2025 will outpace US beef exports by around 2.7 billion pounds [1.2 billion kilograms],” it said.<\/p>\n Between January and July the United States imported 1.5 billion kilograms of beef with Brazil the largest supplier, followed by Australia.<\/p>\n