The Forum > General Discussion > Can we continue to provide ourselves with affordable beef
Can we continue to provide ourselves with affordable beef
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Now exports are what determines our domestic meat prices, as essentially, we eat what we don't export.
Unfortunately this gets taken the wrong way as many think we export the best, and eat the rest, but that's simply not true.
Most cattle are sold as 'live weight' and, this price can fluctuate Week to week, month to month and so on.
I have seen cattle prices go from 200cents, back to as low as 49 cents in the space of ten months. (1995-6)
I am out of touch right now, but I think they are at about the 200 cent mark again.
So, farmers were getting this twenty years ago, which means thier cattle sold for the same dollars then, as they do today, yet their expenses have increased ten fold.
By rights our beef farmers should be getting around 350 cents by now, which would mean mince should sell for $20 kg and rump steak about $45.
Now assuming this trend continues, and it should, as Argintina and Brazil are the next generation of global beef suppliers, can our farmers continue to provide us with affordable meat, given that our export market is likely to contract over the next decade.
Now of you talk to any beef farmer today, expenses are the number one concern.