Australian 90 CL beef trimmings export prices have fallen by around A$ 1.40 per kilogram over the past five weeks, pressured by the U.S. decision to allow an additional 300,000 tons of lean beef —mainly from Brazil— to enter tariff-free over the next three months, Beef Central reported.
MLA’s latest weekly assessment, for August 28, placed 90 CL beef at A$ 9.94 per kilogram CIF, its lowest level in 21 months. However, operators consulted this week by Beef Central said the market subsequently fell further to A$ 9.40-9.50 per kilogram, the lowest prices since October 2024. In U.S. dollar terms, business was reported at US$ 3.20-3.25 per pound, down 40 cents over six weeks.
The removal of the 26.4% tariff significantly improved Brazil’s competitiveness in the U.S. just as the country stopped producing for China after completing its 2026 quota shipments and lost eligibility to export to the European Union, increasing its need to place product in alternative markets.
“In 50 years, Australia has never faced such heavy competition in the U.S. imported beef market,” one trader said. Adding to the pressure from Brazil is the strength of the Australian dollar, which has reduced the competitiveness of Australian exports.
The decline in beef export prices contrasts with firm slaughter cattle prices in Australia. MLA’s cow indicator has risen by 20 cents per kilogram liveweight since late August, widening the gap between cattle costs and beef selling prices. “Meat trading conditions are horrendous; cattle purchase prices and export meat prices simply do not add up,” a trader told the Australian website.
