The United States has shown an insatiable appetite for Australian beef and currently holds the position of the largest export market for the product, ahead of Japan and China.
In the first half of this year, Australia exported 155,430 tons of beef to the US, a 75% increase compared to the same period last year and the highest number since 2015.
However, the demand has not been limited to lean beef cuts, which are mixed with local cuts to produce ground beef. According to Meat & Livestock Australia (MLA), the US has also become the largest market for loin cuts such as tenderloin and ribeye.
Drought in the US
After three years of drought, the US cattle herd is at its lowest point since the 1950s. And although the domestic beef supply is low, demand for the product remains strong.
Thus, the country has been forced to import large quantities of beef. According to the USDA (United States Department of Agriculture), the US will import 1.88 million tons of the protein this year – an increase of 11.2% over the 2023 result.
However, the increase in demand has not been reflected in higher prices for Australian beef in the US. This is because the country faces competition from Brazilian meat producers, whose shipments to the North American market are also growing.
In June, for example, Brazil increased its beef exports to the US by 315% (compared to the same month in 2023), to 17.54 thousand tons.
“Brazil reached its beef export quota to the US in the first three months of this year, but continues to sell outside this quota and pay a 26.4% tariff – because it is still a better alternative than sending beef to China or other parts of the world,” said Global Agritrends analyst Simon Quilty to ABC News Australia.
Cattle prices in Australia, nonetheless, have already started to rise. Currently, the national processor cow indicator is at its highest level since February of 2023.