Australia Cashes In On Beef Exports As U.S. Cattle Herd Shrinks

In a refrigerated room, around two dozen staff wearing hats, gloves, and blue plastic aprons carve and pack carcasses into boxes within minutes of their slaughter.

A decline in US beef production has opened the door for Australia to export record amounts of meat.

The Monbeef slaughterhouse, owned by Bindaree Food Group and located about 100 kilometers south of Canberra, processes about 200 cattle a day, up from 30-40 two years ago, and could increase to 220 in the coming months, Peter Hobson reported for Reuters.

"It's an ideal time," said Ryan McDonald, the plant's livestock manager. "Demand out of the US export market is driving the prices up in abattoirs, which then drives the market up for cattle."

A decline in US beef production has opened the door for Australia to export record amounts of meat, growing its market share in North America and Asia and channeling billions of dollars to cattle processors and farmers.

Australia and the US are among the world's largest beef exporters, each accounting for just over 10% of the global beef trade, exporting around a million metric tons worth approximately $8 billion annually, trade data shows.

Drought has reduced US cattle numbers to their lowest levels since the 1950s, prompting the country to import more beef and export less. Analysts expect US beef exports to decline further as farmers retain cattle to breed and rebuild herds, creating an expanding market opportunity for competitors.