Australia has a deep-rooted love for meat, which is why many buy commercial meat slicer and meat products. The problem is that the Australian meat processing industry is having trouble thanks to the natural disasters that are ravaging the country.
The effects of drought across the eastern side of the country, as well as the flooding in the northern Queensland areas are being felt by the meat industry, as the number of cattle available drops.
According to Australian Meat Processor Corporation CEO Peter Rizzo noted the reports that stated that there might be a 2% drop in the national herd, down to about 27 million cattle. He spoke to a Senate estimates hearing in Canberra early April, saying that, as a processing sector, they won’t feel the effects immediately, but post-event, the ramifications become clear as the industry suddenly finds less livestock or the progeny that should’ve come from the animals that have been lost.
Rizzo says that the AMPC, the industry’s research and development body, is expecting the revenue from producers’ levies to be the lowest it’s been since 2012. He notes that the impact for those looking to get meat, and buy commercial meat slicer, will be felt the most when the drought finally ends.
Processing plants are expected to go down for a bit, for about 18 months, in order to get back up to speed when the boom cycle finally replaces the bust.
Mr. Rizzo says there’s proof of what they’re saying; remains of old processing plants strewn across Australia that have fallen and lived on the supply metrics that they keep track of. Meanwhile, new figures have also made the competitive challenges that the meat industry deals with, including labour, energy, and certification costs.
AMPC research revealed that the average cost of processing to after animals are slaughtered sit at $360 per head in the AU, which is notably higher than neighbouring New Zealand ($305), and even the US ($205).
The majority of the cost comes from labour fees, which costs $210 in Australia, compared to the NZ’s $164, or $129 in the US. Australia’s certification costs also sit at $7.30/head of cattle, compared to $1.50 in the US.
On top of that, energy costs also cost $21 for each animal, compared to $16 and $12 for the NZ and the US, respectively.