Beef consumption down as cost of living bites

Australian households are expected to cut back on beef this year as high retail prices and cost of living pressures force consumers to look for cheaper meat alternatives.

Per capita beef consumption is expected to fall due to cost of living pressure on Australian households. Picture: Charlie Peel

Australian households are expected to cut back on beef this year as high retail prices and cost of living pressures force consumers to look for cheaper meat alternatives.

Cattle prices have fallen since record highs over the past two years but analysts expect the cost of steaks and mince to remain high.

According to the latest beef outlook report by agribusiness lender Rabobank, domestic per capita consumption increased in 2022 to 23.8kg, despite the high retail prices.

But inflation and a slower economy mean households will struggle to continue forking out for the more expensive cuts and instead seek cheaper alternatives.

“With little relief expected in retail prices and slower economic conditions that will potentially have adverse effects on household incomes, we are expecting per capita consumption to fall by 1.6 per cent in 2023,” the report says. Adjusting for population growth, it would see domestic consumption increase by 1 per cent overall. Woolworths on Sunday offered rump steak for $28/kg, porterhouse for $40/kg, and scotch fillet for $43/kg – the same prices as January, despite a continued drop in cattle prices.

Only stir-fry and diced beef cuts had reduced in price, by $1, since January.

Beef consumption in Australia has generally declined since the late 1990s, when chicken overtook beef as the country’s most consumed meat.

Since 1999, beef consumption has dropped from about 36kg a person. At the same time, chicken consumption has risen from 33kg a person to 50kg.

Lamb consumption has also decreased while pork consumption has increased.

Last year marked the lowest cattle slaughter number in Australia in 37 years, but slaughter numbers are expected to rise 16 per cent to just below seven million head this year as supply increases.

At the same time, exports are expected to rise by 10 per cent.

Rabobank senior animal protein analyst Angus Gidley-Baird said cheaper cattle would improve Australia’s competitive position in export markets and ensure less price volatility for processors and retailers.