Beef prices hit record highs as long-awaited rallies increase demand
âIt has improved him on every level,â she said.
His business is based on a subscription model, called Community Supported Agriculture, with customers paying a fixed price each month to receive whatever is in stock.
She said customers shared “risks and rewards” with her business, receiving more deliveries when production was high but less when yields were low.
The farm is also partly shielded from rising feed prices, as it largely sources pig feed from surrounding businesses, including spent brewing beans from the Holgate Brewhouse and whey from the ‘a cheese maker.
However, it has had to increase beef prices in recent years to reflect the increased costs of purchasing livestock.
Bianca Tarrant, who runs online delivery business Our Cow, has already been inundated with Christmas orders and said her prices have increased by around 10% in the past year.
The supplier, based in the Northern Rivers area of ââNew South Wales and working with 50 farmers, shipped more than 35 tonnes of meat last month, with Sydney sales nearly doubling and Melbourne sales tripling.
âThe demand is high, but the livestock just aren’t there,â she said.
âI would think about going in early. We’ve already taken hundreds of pre-orders for Christmas.
Cattle Council chief executive Travis Tobin said beef prices had been driven by a shortage of beef cattle and growing global demand for beef.
âProducers need to keep their cattle for breeding, to rebuild their herds after a prolonged drought in most of the country,â he said.
Angus Gidley-Baird, senior analyst at Rabobank, said retailers, processors and feedlots were competing for a much smaller pool of livestock.
âWe have the smallest herd of cattle in 30 years,â he said.
He expects livestock prices to start falling next year as supply increases in the market.
Rabobank’s data shows that while the prices of chicken, lamb and pork have remained stable over the past year, beef prices have risen 13.5%.
Australian Beef Foundation chief executive David Byard wants consumers to know that farmers only get a small portion of what they pay for meat.
He said that although the average price of beef is $ 23 per kilogram, farmers only get about $ 7 per kilogram due to retailers taking a cut and waste.
A Woolworths spokeswoman said there had been a reduction in the supply of beef across the market over the past year.
âWe understand that affordable protein is important to Australian families and we continue to work hard to manage the pressures of the entire market on protein with our supply partners,â she said.
A Coles spokeswoman said the supermarket was working with its suppliers and farmers to ensure a sufficient supply of affordable seasonal favorites before Christmas.
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