Snow Impacts Australian Beef17 February 2014
US – Consumer food-service traffic has been curtailed by recent cold snowy weather, which is bad for Australian meat exports, reports Meat and Livestock Australia.
In addition, retail buyers have become more reluctant to buy imported manufacturing beef due to requirements for mandatory Country of Origin Labelling, say MLA experts.
These two factors have contributed to imported 90CL cow beef trading cheaper than domestically produced 90CL beef so far this year.
This week, the imported 90CL cow beef indicator was 200.5US¢/lb CIF, 1US¢ higher than last week (464.4A¢/kg FAS, up 3.4A¢), while the domestic 90CL indicator was 233.5US¢/lb. This grinding product price is also well above the Choice cutout of 208US¢/lb, which was as high as 240US¢ just three weeks ago.
US cattle slaughter continues to run below last year, with cow/bull slaughter around 18% lower and steer/heifer slaughter down around 10%.
TheMeatSite News Desk