As Australians, we’re no strangers to the whims of Mother Nature. From bushfires to droughts, we’ve seen our fair share of natural challenges. But the recent catastrophic flooding in Queensland is a stark reminder of how vulnerable our agricultural sector can be to extreme weather events. The floods have not only devastated communities but also have the potential to hit where it hurts most: our wallets.
Experts are sounding the alarm that red meat prices could be on the rise, a consequence of the flooding wiping out a staggering number of livestock. The impact is not just a temporary setback; it’s a blow to the supply chain that could have lasting effects on prices at the butcher and supermarket.
The deluge has claimed the lives of more than 100,000 head of cattle, sheep, and goats, and the Queensland government fears this number will only increase. This loss is a significant hit to the red meat industry, which is a staple in the Australian diet and economy.
John McKillop, the independent chair of the Red Meat Advisory Council, has highlighted the severity of the situation. With the floods affecting western Queensland, parts of the Northern Territory, and northwest New South Wales, cattle producers are in a bind. The inundated lands mean that producers are unable to access their cattle, let alone get them to market. This disruption is expected to last weeks, if not months, drying up the supply from the Channel Country region and, as a result, driving up prices as processors compete for a dwindling number of cattle.
On the flip side, there’s a silver lining for the future. The abundance of rain will lead to a surge in feed, which will eventually create a high demand for store cattle that aren’t yet market-ready. This demand could provide a much-needed boost to the industry once the floodwaters recede and the land begins to recover.
Despite the current challenges, McKillop remains optimistic about the industry’s resilience. He believes that the cattle that survive will eventually make their way back to the market. However, the road to recovery will be a long one, and in the meantime, he urges Australians to support local farmers who are grappling with the extreme weather conditions that vary across the country.
The irony of the situation is not lost on anyone. While Queensland battles floods, regions in South Australia, Victoria, and Tasmania are facing dry conditions, with a scarcity of livestock. This contrast in fortunes underscores the unpredictable nature of farming in Australia and the need for consumers to rally behind their local producers.
Colin Dwyer, an Adjunct Professor at James Cook University, draws parallels between the current situation and the aftermath of Queensland’s devastating 2019 floods. The pressure on meat prices is similar, and there’s a call for the Australian Competition and Consumer Commission (ACCC) to monitor the situation closely to prevent any unnecessary price hikes.
Adding to the complexity, Richard Forbes, CEO of Independent Food Distributors, points out that the closure of main roads and transport routes could exacerbate the market impact. This could manifest as either a spike in prices or a shortage of food supplies.
As Queensland grapples with the aftermath of these devastating floods, the full extent of their impact on the red meat industry is still unfolding. While the recovery process will take time, it’s clear that the consequences will be felt across the nation, both in terms of food prices and local economies.
How do you think the flooding will affect the red meat market in the long term? What steps do you believe should be taken to support the industry and local farmers during this challenging time? Share your views in the comments section below.
That’s a warning sign that farmers should keep their cattle here for us, instead of trying to make more money shipping those animals overseas.
We never know when a catastrophe will happen and before we know it, we run out of food, i.e eggs right now.