Angus Gidley-Baird, the Senior Analyst for Animal Proteins at Rabobank, recently appeared on Flow's Country Viewpoint program to discuss the latest news in relation to Australia's beef markets.
Recent research has brought Australia's healthy production line for beef to the fore, against a 'backdrop of global decline', with a strong supply also currently being observed in Brazil.
Gidley-Baird provided a comprehensive analysis for Flow listeners and outlined his optimism for Australian beef producers while summarising how the global beef markets are currently tracking.
"It's sort of a tale of two halves or two different markets effectively at the moment, we're looking at a US market with contracting production and very strong prices, retail prices there have been increasing fairly consistently, I think it's the fourth consecutive record high prices over there and it's something like the last 10 months worth of rises from a retail price point of view," Gidley-Baird said.
We're also seeing cattle prices go up there because of a reduced volume of cattle on the market as well, so a very strong US market, but then you look at the other markets and those heavily influenced by Asian import demand experiencing weaker consumer markets and generally an increase in production too.
"Australia's production has increased, Brazilian production has increased, so two separate markets playing out there, but it still provides some optimism I think for Australia longer term with that contraction in the US."
Gidley-Baird also told listeners he was hopeful of a spike in consumer demand for Australian beef over the upcoming holiday season.
"We've got much more competitive prices, we've seen retail prices come off for both lamb and for beef, so that should help consumers, but obviously, it's a balance between what they're paying for the product and also how much they've got available and what their disposable incomes are and what the rest of the other costs in the system as well," Gidley-Baird said.
"We're in a much better position from an attractive point of view for that consumer demand now with lower prices but yeah, hoping that everyone decides that they should get out and enjoy some Australian beef over the Christmas period, that would be great."