Australia Emerges as Key Beef Supplier Amid U.S. Trade Turmoil
Australian beef producers are cashing in on US President Donald Trump’s crackdown on imports, with limited stock seeing prices soar.
Despite being called out specifically by Mr Trump during his Liberation Day speech in April, Australia is currently one of the few large remaining foreign suppliers left for the US.
Commonwealth Bank sustainable and agricultural economist Dennis Voznesenski said strong demand out of the US is pushing beef export prices further into record high territory.
The US has largely four sources to import beef from abroad, being Mexico, Canada, Brazil and Australia,” Mr Voznesenski said.
“Mexico has a flesh eating bacteria called new age screw worm with the US closing the border to Mexico … Canada exports to the US are down 25 per cent from last year as they rebuild stock and as of August 1 President Trump plans to put a 50 per cent tariff on Brazil.”
The economist said US farmers currently have a multiple-decade low supply of beef, meaning they will need to continue to export from other countries.
“Typically with tariffs the objective is to onshore industry. With some products you can restart quickly, but with cattle it’s just not how it works, “ Mr Voznesenski said.
Mr Voznesenski said Australia had since emerged as the final source of beef left for the US, with exports to America already up 30 per cent, even with the 10 per cent tariffs slapped on local producers.
“We are still waiting for the August 1 tariffs on Brazil and to see what actually happens, but afterwards it supports the demand for our product, so when you have higher beef prices it supports the price of cattle overall,” he said.