May 2021
Please find below AMIC’s monthly industry economic update.
Key takeaways from the data:
- The ABS quarterly livestock production statistics for March showed a continued decline in production across red meat while pork and chicken production were flat.
- Sheep and lamb prices at slaughter increased 11% for the quarter, which was the largest quarterly increase of the past 5 years. Cattle prices increased 3% for the quarter continuing a 2-year period of price increases. Pig and poultry input prices showed quarterly decreases.
- The beef and lamb production and cost data highlight the difficult supply-side conditions currently impacting the red meat processors and retailors, with the annual slaughter likely below breakeven for many processors.
- The ABS quarterly consumer price index data showed that retail prices also increased but at a slower rate than livestock input prices putting additional pressure on the red meat processing and retailing sector margins.
- Trend increases in red meat relative to pork and chicken continue to decrease beef and chicken consumption; however, with price increases, total expenditure on red meat is relatively steady. Overall consumption of meat has trended down for five years, however total domestic spending on meat continues to grow.
