Upward movement in consumption of beef and lamb is already evident on the back of cheaper supermarket prices, Meat & Livestock Australia has revealed.
In terms of total spend, consumers are now spending more on red meat than they were three to six months ago, MLA's managing director Jason Strong told delegates at the 2023 Australian Meat Industry Council conference.
Retail prices have only come back slightly compared to the big drop in livestock prices at saleyards, although this week the two big supermarkets announced discounts of 20 per cent and more on a big range of lamb products.
However, it's been enough to shift the needle on the volumes people are putting in their shopping trolley.
Mr Strong said longitudinal studies run by MLA had consistently shown that more than 50pc of the purchasing decision around red meat was based on price. No other drivers, including sustainability and animal welfare, accounts for more than 15pc.
"Interestingly, more than 90pc of Australian households consistently eat beef and more than 70pc consistently eat lamb," Mr Strong said.
"The evidence is that consumers are committed to red meat. They see value in the product.
"We have an incredibly nutritious, consistent, high quality, great-eating-experience product - that's worth quite a bit of money. Value isn't just price."
Mr Strong's consumer insight information came on the back of a discussion about the disparity between the prices producers are receiving and what is being charged by retailers.
He said as livestock prices went up to record levels after the drought broke, the retail price didn't go up at the same rate.
Now those retail prices were also not coming down at the same rate.
Mr Strong was also asked what "keeps him up most at night."
"The thing that bothers me most about this industry is how challenged we are in looking for opportunity and the good in what we do," he said.
"It seems like if something is going bad, all we talk about is how much worse it's going to get and if it's going good, we talk about how it could end up going bad.
"As an industry we are so materially different to what we were 20 to 30 years ago in the way of sophistication of our supply chain. There is plenty to be optimistic about."
Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
