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Interview with a Global Meat Trader: Part II

7 Oct 2016 4:24 PM -

Robinson Sewell Partners caught up with Connor FitzGerald who lives and breathes trading Australian meat globally.  There is much chatter on why Australian meat prices are currently trading where they are, and more importantly, what is in store in the future for Australian Meat.

 Take 2 minutes to view Connor’s inside view on Australia’s meat market. 

 

 

Dunnett & Johnston Group Pty Ltd

Australia’s largest independent meat wholesaling and export trading company. Proudly 100% family owned with a history in the Australian meat industry dating back to the 1960’s.

 

Connor FitzGerald

Senior meat trader and export professional. 15 years’ experience selling Australian red meat to over 30 countries globally. Passionate about Australia’s position as a protein supplier to a burgeoning global population.

 

5 key take home messages for Australian beef producers

  • Australian livestock prices are largely driven by seasonal weather patterns. Export meat prices are affected largely by currency and in-country demand. And quite often export meat prices and cattle prices are not strongly correlated.

  • The Australian cattle herd is currently going through the beginnings of a rebuilding phase. So tight numbers and intense restocker activity will continue to keep livestock prices above average over the medium term.

  • Industry forecasts show that the number of marketable cattle in Australia will not start to expand again until at least 2018.

  • Current record high cattle prices are resulting in negative returns for all export beef processors in the Eastern States.

  • It’s the niche programs that will give graziers the sustained positive returns over the medium and long term. Programs and certifications that specify points of difference and promote Australia’s clean, green and food-safe image worldwide (for example breed specific certifications, HGP-free programs, pasture fed programs etc) represent the best opportunity for Australian graziers to achieve above average returns for their livestock over the long term.

 

For those who missed Part I in October 2014, please review the link below.

 

http://www.robinsonsewell.com.au/finance-news/demand-for-australian-beef-and-lamb-on-the-world-market.aspx

 

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