Burgers demand fuels dairy meat price hike

Dairy meat prices are up by more than a third over the past 12 months — and hungry Americans are a key reason. Here’s why.

The dairy cow indicator prices is 34 per cent higher than the same time last year.

And it’s mostly due to increased demand from the United States for lean beef to go into their burger meat blends.

The Meat and Livestock Australia dairy cow indicator lifted 22c/kg for the week to 302c/kg liveweight – up 64c/kg in a month and 78c/kg higher than the same time last year.

The processor cow indicator lifted 5c/kg to 309c/kg liveweight, which was supported by a 20c/kg lift in Victoria.

According to Meat and Livestock Australia market analyst Emily Tan said cows, especially leaner cows, were prioritised by processors over other types of cattle.

Ms Tan said a part of the dairy and processor cow market moving well was processors were able to take advantage of the cheaper prices, compared to other categories.

However, the demand for dairy cows was due to the US demand.

“The US herd is the smallest in 70-plus years, and their feedlot carcass weights are high, so they need to mix that beef with leaner animals, which is why dairy and processor cows have lifted, they need the leaner beef,” she said.

Ms Tan said there has also been a supply lift, but it hadn’t impacted prices.

“Seasonal calving happens around June to August for dairy cows, so producers are also turning off older cows and getting ready for the new season.”

Dairy cattle demand depends on the state you’re in, industry operators say. Picture: Andy Rogers

United Dairyfarmers of Victoria president Bernie Free said while prices may have risen interstate, dairy meat prices in drought-ravaged Victoria were far more subdued.

“While there’s been a lot of talk about the American market lifting Australian dairy meat prices, the evidence on the ground in Victoria is pretty thin,” Mr Free said,

“I can’t speak for other states – the price may be higher there but in Victoria, the market has risen slightly, but not by more than 30 per cent, nowhere near.

“If you take a look around Victoria, the drought may have pushed sales a bit but you wouldn’t call it strong demand.”

Meanwhile, Northern Victoria livestock and real estate agent Craig Cox said for commercial dairy cows there was demand from Queensland and NSW producers, but not Victoria at the moment.

“It is all milk price related. If we get close to $10/kg in Victoria for the vast majority of suppliers, we will see more of an interest in dairy cattle, particularly through spring,” Mr Cox said.

Mr Cox said he anticipates the supply of spring calving cows to be short, due to more cows killed in the Western District due to not being able to afford to feed during the dry period.