Household disposal income will drive future demand for Australian beef in the next 12 to 18 months, an animal protein analyst said.
Rabobank senior analyst animal proteins Angus Gidley-Baird provided the second annual Australian Brahman Breeders' Association conference insights into the economic outlook, marked by ongoing global conflicts and challenging domestic economic conditions.
He said the price of beef and household disposal income affected beef consumption across the world.
"The strongest correlation for beef consumption is wage growth," Mr Gidley-Baird said.
"We can keep an eye on all these things that are happening in the global economy but it really comes down to what is happening to the individual consumer and how much money they have in their pocket.
"That will have a big bearing on beef demand.
"We will need that global consumer because our general population and consumption levels will not grow to accommodate an increase in production that we are expecting on the market in the next 12 to 18 months."
Mr Gidley-Baird said costs would come down and inflation would contract but interest rate relief is some way off.
He said the current geopolitical tensions would continue and likely have trade ramifications.
"There's always a risk of that rearranging global waters and what it means for our trading relationships, partnerships and allies, so it's one we have to keep an eye on," he said.
He said Australia was in a "unique" situation.
"Generally, when we talk about a slowing economy, challenging interest rates and high inflation rates, you don't usually associate that with very low unemployment," Mr Gidley-Baird said.
"Yet we have we have very tight labour markets across the world at the moment and our unemployment is at a 50-year low and causing pressure on wages."
