2023, Volume 26, Paper 9
ISSN: 2209-6612

Does the United States Cattle Cycle Still Influence the Australian Beef Market?

Muhammad Helmi  – School of Agriculture, Food and Ecosystem Sciences, University of Melbourne

Garry Griffith  – School of Agriculture, Food and Ecosystem Sciences, University of Melbourne

Abstract

The United States cattle cycle has been evident for almost 150 years. Many studies have shown the strong influence this phenomenon has had on the global beef market including on the Australian beef industry. In recent times there have been some indications that the strength of this influence on the Australian beef industry has weakened; that is, activity in the beef industry in Australia is no longer as directly related to activity in the beef industry in the United States as in the past. In this paper the current state of the United States beef industry is examined with a focus on the cattle cycle.  The same is done for the Australian beef industry, and then some comparisons are drawn between the two industries. The relationship has weakened in the last 10-15 years. Changes in macroeconomic conditions, climate and market competition, as well as food safety events, have had a role in this weakening relationship between the cattle cycle in the United States and in Australia in recent years.

Key words: Cattle cycle, value chain drivers, Australian beef industry

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