Australia and Brazil are undeniably the two “giants” in the global beef trade. Together, both markets account for 35-45% of world trade, and to some extent, dictate the supply and price of beef for available for international customers. With that in mind, our analyst in Brazil Augusto looks into whether the two compete head-to-head for market share.
The Australian Competition and Consumer Commission (ACCC) announced in early April of a market study into the cattle and beef industry to be undertaken this year. Issues covered by the study are wide ranging but a particular aspect of the investigation that caught our eye was the focus on greater transparency with regard to profits and margins along the beef supply chain.
In January 2015 we published an in depth report into the cattle cycle and how it impacts prices. This article outlined the basis of some of our forecasting methods and provided some detailed background into our analysis that the Australian cattle market in late 2014 was undervalued, had deviated from fundamentals and was due to correct into 2015.