- 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.
May 2021 Please find below AMIC’s monthly industry economic update. Key takeaways from the data: