Australia frozen boxed beef: Sales slow

Market: Agriculture
21/03/25

Uncertainty over potential US import tariffs and reciprocal tariffs from other major beef-importing countries slowed beef trim sales, amid low trader visibility on future price trends.

The Australian 85CL frozen beef price fell by A$0.18/kg to A$9.24/kg. Bids, offers, and trades ranged from A$8.90/kg to A$9.45/kg. Traders anticipate that prices will remain steady until there is clarity on import tariffs. Most market participants expect prices will then rise because of a lack of domestic product available in north America.

The spread between US domestic and imported Australian beef is currently at US$0.90/lb, a market participant said. Any tariff is also anticipated to close this spread, eroding the value-adding opportunity where imported beef is processed further in the US and then branded under USDA labelling.

Sustained demand for Australian 95CL frozen bull beef increased the price by A$0.09/kg to A$10.74/kg. Bids, offers, and trades ranged from A$10.40/kg to A$11.03/kg with US buyers demanding product from New Zealand as well.

Trades to Japan were mixed. Some market participants reported that second-quarter negotiations on popular cuts have stalled until US tariffs become clear, while other processors reported finalized contracts with a general price increase.

Large volumes of Australian 100-day grain-fed chuck roll were sold to Korea and Japan, with small volumes also shipped to Canada. The price rose by A$0.09/kg to A$12.23/kg. A significant volume of Australian 100-day grain-fed inside cap off was also sold to Japan. The price fell by A$0.14/kg to A$12.19/kg. Bids, offers, and trades ranged from A$11.00/kg to A$13.51/kg.

Processors in southeast Queensland continue to work through a cattle backlog after production days were lost because of Tropical Cyclone Alfred earlier this month. Forecast wet weather across northern Australia is anticipated to slow cattle supply, which is outpacing demand, particularly for grain-fed cattle. Market participants anticipate forward prices to soften, they said.

Strong competition for cows is occurring throughout eastern Australia because of a shortage in the southeast. One processor is offering prices of 305A¢/kg for heavy cows over 600kg, delivered to the Dalby saleyards, market participants said. Processors want to keep production lines busy, although US demand could affect this.

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