Australian market firm in 2006-07

by Editor
Friday, August 17, 2007

Key domestic market indicators for the 2006-07 financial year confirmed a firm domestic market for beef and lamb.

Over the 2006-07 financial year, further growth was registered in Australian domestic expenditure and usage for beef and lamb. Consumer demand was also steady for veal.

Estimated Australian consumer expenditure on beef and veal grew by a further $217 million, or 3.4% in 2006-07, to $6.6 billion, bringing the jump since 2000-01 to 53%.

This increase has been associated with strong consumer spending generally, a lift in the quality of beef and more positive nutritional and dietary attitudes to red meat. For similar reasons, expenditure on lamb rose a further 12% in 2006-07, to almost $2 billion and is estimated to have doubled over the past decade (MLA estimates using ABS and DAFF data).

The lift in beef expenditure for the year was driven by a 3.5% rise in beef and veal usage to 431,780 tonnes cwt, compared with 2005-06, while the average retail price of beef eased slightly to $15.38/kg (down 0.1%).

Lamb expenditure for 2006-07 lifted as a result of an 11.7% rise in usage on 2005-06, to 233,330 tonnes cwt. The average retail price of lamb rose just 0.3%, to $12.20/kg (MLA estimates using ABS and DAFF data).

Although average weekly beef and veal and lamb servings bought at retail during 2006-07 eased 4% and 3%, respectively, to 44 million serves and 24.7 million serves, usage by foodservice outlets improved.

Usage of beef and veal grew by 4% over the 12 months to 76.1kg/outlet. Consumption of lamb by foodservice outlets also grew in this latest survey over 31% in 12 months, to 38.3kg/outlet.