WHILE rising beef retail prices is a challenge, the good news is it has been driven by a small number of cuts.
Meat and Livestock Australia’s domestic market expert Andrew Howie outlined data at a recent industry event which showed prime steak - that is rump and above - had created a distortion on the beef retail price chart.
The likes of diced beef, casserole, stir fry strips and roasts haven’t increased and that offers fantastic opportunity, according to Mr Howie.
“That is especially the case when you consider whole-of-carcase utilisation programs and think about the work we do to educate consumers on the fact there is more to beef that a scotchy or sirloin,” he said.
Declining per capita consumption, likewise, doesn’t tell the full story.
Australia’s population mix is changing, Mr Howie explained.
“When you are a heavy consumer of beef and you also have a multicultural policy, anyone who comes to Australia who eats less meat is going to drag the average down,” he said.
Prevailing Western trends, as well, are to consume less meat.
Still, beef is currently priced at almost four times that of its key competitor in the domestic market, chicken.
One area where opportunity exists is in the fact consumers think beef is more expensive than it actually is, Mr Howie said.
There is potential to close the price perception gap.
Domestically, 60pc of beef goes into retail and 40pc to food service.
