US meat supply: Australian beef sector keeps close eye on US inflation

US President Joe Biden says a lack of competition in America’s meat sector is in part to blame for inflation in the States.

Australia needs to maintain a healthy level of competition in the meat processing sector if it is to avoid the inflationary troubles experienced on American supermarket shelves.

That’s the message from Victorian Farmers Federation livestock president Steve Harrison, who said Australia is better placed than its American cousins.

US President Joe Biden last week held talks with agricultural leaders over the rising price of meat across the US, one of the causes of retail inflation in the country.

Mr Harrison said Australia’s meat prices were buoyant but not at the levels seen in some other comparable nations.

“Parts of the US have been experiencing drought, so that’s placed upward pressure on prices there,” he said.

“It’s also worth mentioning that Brazil has been battling through an outbreak of foot-in-mouth, so that there’s less supply there.”

The four major American meat companies — Cargill, Tyson Foods, JBS, and National Beef Packing — control roughly 85 per cent of all meat processed last year in the US.

While Australia has a more competitive sector, Brazilian-based JBS recently acquired Australian processor Rivalea, making the deal official last week.

In December, the Australian Competition and Consumer Commission said the acquisition by Brazilian-owned JBS, valued at $175 million, could go ahead, finding “the transaction is not likely to substantially lessen competition”.

Rivalea Holdings was also a majority shareholder in Diamond Valley Pork.

“Here in Australia, we have greater competition but we’ve got to keep an eye on how the processing side of things is managed. The ACCC performs that role here — it’s not as clear how it’s regulated in America,” Mr Harrison said.