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MARKET SNAPSHOT

  • Clara Leung
  • May 28
  • 3 min read

Thursday, 28 May 2026


Latest meat market conditions


The latest data from the Australian Bureau of Statistics (ABS) was released last week covering the quarterly statistics of all livestock and meat produced for the quarter. Read on for more on what’s affecting domestic foodservice.



BEEF


 The appetiser – what the market means for foodservice

A lot of movement in the export markets which will impact the beef industry in the later parts of the year and into 2027, but no major changes in the short-term.


The mains

Trump announced that he would be temporarily suspending the Tariff Rate Quota on 11 May 2026 in a bid to lower US beef prices. These executive orders have since been delayed after strong pushback from the US cattle sector, and as a result Trump’s office is currently “fine-tuning” the language. If or when this order is signed it would remove the 26.3% tariff advantage that Australian beef enjoys, bringing more competition from other producing countries for the US beef market.

According to the Australian Bureau of Statistics, beef production has increased in the March 2026 quarter by 2.3% and export demand has also risen in the same period. Export demand for beef is expected to remain strong for the remainder of 2026 and into 2027 with the US being the driving force, thanks to a combination of:

  1. Historically small cattle herd: The U.S. cattle inventory stood at approximately 86.7 million head in 2025, the lowest level in decades.

  2. Higher production costs: Producers are managing increased expenses for feed, fuel, land, labour, and financing.

  3. Worsening drought conditions: The US drought monitor is showing extensive drought conditions over key cattle producing regions, making it difficult for producers to start the herd rebuild.


Apart from the US, there are other opportunities in the export market for Australian beef. Earlier this month the EU announced that they would remove Brazil from the list of approved chicken and beef imports on 3 September 2026, unless Brazilian producers are able to demonstrate compliance with EU sanitary and antimicrobial standards.


LAMB

 

The appetiser – what the market means for foodservice

Lamb availability continues to be tight, especially as we start to head into the seasonally tighter periods. Please stay close with your sales rep for up-to-date information.

 

The mains

Overall supply continues to be the main factor when it comes to lamb, which can be seen with the slaughter rates decreasing by 3.2% during the March 2026 quarter. The recent rainfall will continue to tighten supply in the short-term as producers are now more optimistic about keeping lambs to rebuild their flocks, reducing the amount of lamb available for production.


PORK

Pig meat production in the March 2026 quarter decreased 1.4% to 116,824 tonnes.

Nevertheless, rising costs of lamb and beef have placed pork as an attractive option for both retail and foodservice, meaning competition for Australian pork cuts is rising in the market. Recent data from Australian Pork Limited (APL) revealed that over the recent summer period, pork burgers were the number 1 burger option in foodservice.


CHICKEN


The appetiser – what the market means for foodservice

Chicken supply remains tight due to the influx of chicken items on the menus at QSR venues. Despite chicken production levels rising for the March 2026 quarter, the sector is challenged with meeting the demand coming from retail and QSR.


The mains

As with the rest of the protein markets, the chicken industry is also feeling the impacts of global fuel market disruptions as rising diesel prices and ongoing supply uncertainty place pressure on the chicken meat industry.

As of 2025, ABARES found that retail & supermarkets account for approximately 41.9% of chicken sales; while foodservice venues, which also include QSR, make up 27.5%. Retail is increasingly taking on a larger share of chicken, with the general consumers turning towards chicken as their protein of choice due to the price point against red meat options.

 

Of the foodservice venues, QSR is taking up the majority of the share and will only continue to grow, with chains jumping onto this new chicken craze including:

 

With market movement happening all at once, the incremental increase of 0.9% chicken production in the March 2026 quarter is not supporting all the increased demand.



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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