Cost-of-living pressures could force households to switch to mince and sausages instead of rib-eye steaks and sirloin, Australian beef producers have been warned.
Australian cattle farmers are well positioned to benefit from tightening global supply and firm international demand, says a new report from Rabobank, an agribusiness banking specialist.
But they could face consumers buying cheaper-priced meat cuts if the Middle East war continues.
The conflict was increasing cost pressures across Australia's beef supply chain, with flow‐on impacts for producers and consumers, RaboResearch senior analyst Angus Gidley-Baird told AAP.
"In a market where beef prices are already elevated, any softening in demand could place margin pressure across the supply chain, limiting the ability to pass on further cost increases."
Consumers on tightened budgets could shift their spending behaviour to lower‐priced beef cuts over premium products, affecting the overall value of the beef carcase, Mr Gidley-Baird said.
