WAGYU DEMAND REMAINS STEADY
Twelve months ago, the hospitality and food service industries were in dire straits as
Wagyu F1 vs Feeder indicators (MLA) FY 2020 - 2021 Source: AuctionsPlus, MLA
restaurants right around the world closed doors overnight in the wake of COVID-19. With government support and the slow return to the new COVID normal, food service is showing some signs of recovery. The exception, are those heavily reliant on tourism such as hotels. While the fine dining sector has suffered, uptake through retail in local and export markets has stabilised premium beef markets. Quick service restaurants and locally owned restaurants have taken up much of the downturn. The recent increases in the Eastern Young Cattle Indicator have been an indication that
The December 2020 quarter reports
produced product.
cattle herds are rebuilding across the beef
from ABARES indicate that exports
sector, helped in part with the recent rain.
The F1 Wagyu sales since June 2020
for agriculture were down compared
Although representing only a small fraction
to 2019, but sit within the three year
of F1 Wagyu feeder cattle sold to supply
average. Two factors have contributed to
chains, the movement of F1 Wagyu through
overall decreases into China and Japan
AuctionsPlus indicates that Australian Wagyu
particularly, with the increased cost
markets continue to strengthen.
of beef production here in Australia,
The MLA Lot Feeding Brief for the December
and the high exchange rate to the $US.
560c/kg, compared to a slower trend
2020 quarter shows that the number of cattle
For China, trade tensions continue to
increase for MLA heavy feeders closing
on feed in NSW, Victoria and SA increased
be challenging more so in commodity
out at around 420c/kg. Clearance of sales
compared to the previous quarter, while
beef, while the Japanese government
of F1s through AuctionsPlus has averaged
Queensland remanded relatively steady.
continues with subsidies for domestically
around 73% for the same time frame.
on AuctionsPlus show a starting point at approximately 410 c/kg, while the feeder indicator sat slightly below 400 at the same time. At the end of February 2021, the F1 sales have trended upwards toward
ISSUE 77 - THE AUSTRALIAN WAGYU UPDATE
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