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MARKET SNAPSHOT

  • Clara Leung
  • Apr 16
  • 5 min read

Updated: 2 days ago

Thursday, 16 April 2026


Latest meat market conditions


UPDATE ON PETROLEUM SUPPLY FROM PETER ANDREWS


“Rising petroleum costs are continuing to affect the entire supply chain. Weekly or fortnightly fuel levy adjustments by all our freight forwarders and suppliers’ deliveries are now basically universal.

 

We continue to absorb these costs, but please be aware that we will be implementing a petroleum levy at some point in the near future, and as previously communicated, we will update customers as soon as that decision has been finalised to allow as much time as possible.”

 


This fortnight, we’ll be taking a step back and looking at how Australian export markets have been impacted by the global conflict to break down below what these developments could mean for domestic foodservice.

 

BEEF

 

The appetiser – what the market means for foodservice

No forecasted changes in the short-term, however export demand will remain the key driver for domestic pricing and supply.  Stay close with this fortnightly blog to remain up to date with any changes in the export market.

 

The mains

Rising fuel costs weighed on cattle prices, and all other segments of the supply chain, throughout March. Some instances that have been playing out of negotiations through the supply chain on the back of fuel access and pricing challenges could mean broader changes down the line to the way we’ve been accustomed to understanding the state of the meat trade in Australia.  

 

For example: conventionally, when transporting cattle to the processors, producers would absorb the transport costs themselves. Since of late it has been increasingly challenging to do that (particularly for diesel costs and particularly in rural areas), there are reports that, to try and make a more reasonable state of play for both parties, producers are taking lower figures for their live cattle but adding new charges for the transport of their stock. Whilst this has only been the case for about a month, it’s anticipated that this will become more prevalent as the market adapts to the higher cost of fuel. Should this trend, however, be more concrete come the end of April, Bendigo Bank analysists comment that the prices seen at saleyards may no longer reflect the state of trade through the broader supply chain as we have been accustomed to considering them.

 

On a broader scale, beef prices across the globe are well above their year-on-year values (see this example given in Brazilian Real), hence the urgency to purchase and process beef to capitalise on these markets which, in turn, is raising cattle prices in the saleyards.

 

Despite the myriad geopolitical challenges at present, the United States was the largest destination for Australian beef with their export volumes sitting 110% above the five-year average for March. While Australian exporters are experiencing high demand from the United States with record import levels and growing supported by lower US beef production, higher demand from China have also entered the mix.

 

It’s predicted that Australia will trigger China’s safeguard tariff before the end of June, since it’s already sitting at 50% of the allocation as at the end of March. Already, Australia’s export volumes to China sits 93% above the five-year average, before the safeguard mechanism is implemented.

 

 

In addition to this, the tariff from South Korea is expected to be triggered in July, leaving two of Australia’s largest four markets with significant tariffs for the second half of 2026. Once these tariffs are implemented, theoretically exporters will become less inclined to purchase cattle at the current historically high values and saleyards should see demand wane.


 

 



LAMB

 

The appetiser – what the market means for foodservice

Lower lamb volumes and sustained export demand means that lamb supply and pricing will remain under pressure for domestic foodservice, especially in the premium lamb sector. There are no forecasted short-term changes to availability or pricing, but please remain close to your sales representative as the sector is susceptible to global shifts.

 

The mains

Lamb prices have continued higher in March at the saleyards, with the recent projections released by Meat & Livestock Australia (MLA) indicating that tighter supply may be here for some time.

 

MLA is also predicting that lamb production will be declining throughout 2026. We see this in March’s processing data displays that sharp decline in supply, with weekly slaughters down by 24% YTD, and this tighter supply trend is expected to continue over the next few months, which will keep lamb prices and availability tight.



At this stage, all eyes on processors as to how they will adjust to a prolonged period of tight supply especially with export conditions for Australian lamb remaining mixed.

 

 

 


Lamb prices in Australia have risen following the overall rising global trend (see below graph), as lamb supply remains constrained across all markets; the United States alone have seen their lamb prices surge 61% over the past year. More broadly across the Northern Hemisphere, UK and EU lamb prices have also trended higher, though at a more modest pace, gaining around 14% over the same period. Collectively, these factors are driving continued steady demand for Australian product.

 

 

On the flipside, domestically lamb prices haven’t moved to the same extent – with retail lamb softening back in January before the Iran conflict began, which may drive even more lamb going into export markets.

 

 


LOOKING AHEAD

Fuel pressures on the Australian red meat industry

 

Results of a survey by the Red Meat Advisory Council (RMAC) were released in early April that provided more insight into the impact that rising fuel prices are having on the entirety of the red meat industry, from the producers, to transport and logistics, to processors and wholesalers. All industry sectors are predominantly dependent on diesel and are under constant price and supply pressure. While fuel is used regularly across all months, the two peak demand periods for fuel are April-May and October-November. In western New South Wales, 28% of respondents at the time of the survey said they lacked sufficient fuel to maintain operations.

 


Disclaimer: The information contained in this blog is provided for general informational purposes only. While Andrews Meat Industries has exercised reasonable care, skill and diligence in its preparation, many factors — including environmental and seasonal conditions — can impact its accuracy and currency. For tailored advice relating to your business, please contact your Andrews Meat Industries sales representative.

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