The outlook is positive for beef in Australia, making it a great time for processors to capitalise on opportunities for optimisation. Global protein demand and high Australian throughput has positioned Australian beef advantageously, and processors can maximise their returns by advancing their operations now.
Head of Business – Customer Success APAC at Foods Connected, James Hennessy, has worked in the red meat sector for two decades across two continents and says there is a clear global beef supply shortage.
James Hennessy
“We are in a demand-led market. Demand globally for beef is going to continue to increase and supply will continue to tighten in parallel,” he said.
“Australia is in a very unique position because our kill is high and we have supply availability, but this is tightening and cattle are becoming increasingly expensive. In 2026 we will begin to see a shift in our cycle, which is why data, innovation and automation are going to be the key to ensuring processors maintain profitability on strong performing livestock categories and equally, minimise losses on weaker performing categories.”
“Australia’s processing sector is a global leader in innovation, sustainability and profitability, pivotal in achieving beef’s current record production volumes and value. Its ability to increase capacity has been critical not only to the industry, but more widely to the country’s economy. Processors that invest now in their operational efficiency, data and sustainability will be in the best position when the cycle ultimately turns – which it always does.”
1. Enable faster data-driven decision making through centralised systems
The meat industry professionals at Foods Connected say now is the time for processors to strengthen their capability to enable faster data-driven decision making, moving from measuring their performance to optimising it.
Foods Connected’s Head of Business – Customer Success APAC, Andrew Smyth, says this is the time for processors to really review the story behind the data they collect.
Andrew Smyth
“If you have processes that take time to analyse information, you might have to jump into multiple different areas to get the answers and the time taken to execute could be intensive,” he said.
“Whereas if you’ve got an effective system that collects data into one centralised area – into one simple report as an example – the burden of that process is much less than having to go across multiple different systems or documents. Ultimately, that provides you with key information quickly to enable faster data-led decision-making.”
2. Increase mix of brand offerings into premium export markets
The latest Meat & Livestock Australia (MLA) industry projection reveals the Australian cattle herd is projected to remain steady through 2026 before easing slightly in 2027. With nearly two thirds of Australia’s beef being exported, domestic industry growth has been supported by surging red meat demand from across the globe. The MLA projection also shows beef exports in the year-to-July at record levels.
Even with 10 per cent tariffs on Australian beef entering the U.S. from April 2025, October saw Australian exporters earning nearly $100/kg cwt, or 20 percent, more than the same month in 2024.
Andrew said processors could get ahead by increasing their mix of brand offerings into premium export markets rather than chasing volume and lower return markets.
“We can align our production runs with high-value export products, with a focus on throughput efficiency through tightening turnaround times and reducing downtime, delivering production optimisation,” he added.
3. Maintain profitability on strong performing livestock categories and minimise losses on weaker performing categories
Grainfed beef continues to gain pace following another record high quarter for cattle on feed in Australia at 1.57 million head, an increase of 5 per cent from the previous three months.. It was the seventh consecutive quarter of rising numbers on feed, which has led to record grainfed beef exports.
Meanwhile, U.S. beef production fell 5 percent in early 2025 to 2.89 mt, with herd rebuilding now beginning as conditions improve. Import limits from Mexico due to screwworm have further tightened supply, pointing to reduced beef availability through 2026-27 amid steady demand.
“Value based marketing is an initiative that packers can use to unlock more revenue from the carcass. Data underpins this initiative and is critical for its execution. A second example is using strategic analytics to fine tune forecasting, such as utilising livestock performance data to recalibrate the ‘total booked head’ livestock procurement forecast figure, which streamlines planning to the boning room. Volatility in planning can have a direct impact on profitability,” James explains.
4. Reduce energy and storage costs while improving environmental credentials
The Australian Meat Processor Corporation’s (AMPC) latest Environmental Performance Review, conducted bi-annually by CSIRO, saw its highest participation rate of red meat processors, and achieved a record low greenhouse gas emission level since reporting began in 1988.
Clearing excess cold store stock from the sector would not only contribute positively to environmental credentials, but also reduce energy and storage costs for processors.
5. Build sustainability partnerships and centralised reporting capabilities
“This strong period should also allow processors to further build partnerships with producers to focus on work around feed efficiency or low emission feed, and methane reduction. Digitising the data collection process also unlocks the ability to centralise reporting on sustainability metrics that can be shared with end buyers as a future value add.”
Meat & Livestock Australia’s Managing Director, Michael Crowley, said the integrity of supply chains and dedication of processors to build trust with international customers has been pivotal to industry growth.
“Australia’s record red meat exports in 2024 are a reflection of our industry’s global customer focus to deliver high quality, safe and nutritious red meat solutions to meet growing demand,” he said.
“As global demand for premium protein continues to grow, Australia is well positioned to lead, innovate and deliver value for our customers and trading partners.”
As revealed in the AMPC’s recent Socio-economic Impact Report, more than 189,000 people are employed in the red meat processing sector in Australia and contribute more than $17.8 billion of household income – and that’s not lost on Foods Connected.
“People are the backbone of our industry. Empowering people with data to make informed decisions is critical,” James said.
“Ultimately, data is the glue that holds the supply chain together, transforming complexity into clarity, reducing risk, and empowering partners to work proactively and in sync across every link in the chain.”