The price gap between Australian beef and US product is providing some comfort to producers
A Victorian cattle producer is calling on the Australian government to be more proactive to improve market access.
Mortlake beef producer Nick Allen says while US tariffs were was “not good news for the market”, they would “take a little while” to have an impact.
Mr Allen supplies domestic supermarkets, as well as the supply chain that feeds beef into international retailers such as McDonald’s.
However, in Australian beef producers and exporters’ favour, he said, was the fact that currently Australian cattle were cheaper to buy than American cattle, which could help support ongoing demand for Australian beef from US buyers even with a tariff applied.
“Our cattle prices in Australia are a lot lower than the prices for cattle in the US – there is a big gap between them,” Mr Allen said.
But Mr Allen remained concerned the tariff could still impact what buyers were willing to pay for Australian cattle in general.
“There will be a knock-on effect on the market, in some form,” he said.
“Producers do not need any more added costs, but I don’t think 10 per cent tariffs are the end of the world, and it could change in time.”
Mr Allen called on the federal government to take a “more proactive” approach to dealing with the US. “Maybe go to the US and talk to them, that would be a good start,” Mr Allen said. “But do not compromise on our biosecurity.”
It comes at a time when much of west and central Victoria and South Australia continue to battle below average rainfall.
“When it rains in western Victoria and SA we will be more focused on grass than tariffs, and
following Queenslanders will be chasing more cattle too,” he said.
“Producers are more focused on feeding and water issues than anything else.”