Australia’s domestic market remains the largest and most important market for Australian beef, accounting for approximately 35 percent of total beef production in 2010-11.

Meat and Livestock Australia's preliminary estimates for the past financial year indicate that domestic beef utilisation totalled 746,000t in the past financial year, 3pc lower than 2009-10.

Domestic utilisation refers to what is left after total annual exports are deducted from total annual beef and veal production.

Australian beef production remained steady over the past year, rising by 1pc on 2009-10 levels, according to MLA.

Exports increased 4pc on the back of strong overseas demand during the first three quarters of 2010-11.

Retail beef prices eased 2pc over the first three quarters of 2010-11.

“Australian expenditure on beef over the 12 months to June is estimated to have fallen by about 5pc, reflecting the significant sales impact of the competition among major retailers amid steady supply and firm consumer demand," MLA reported in its most recent Meat and Livestock Weekly newsletter.

MLA forecasts that ongoing competition among major retailers, combined with price discounts, will move prices down into the second half of 2011.

MLA said that despite weak consumer sentiment in 2011, Australia’s long-term economic outlook remains upbeat, along with strong underlying economic fundamentals.

“Improved beef and lamb production over the second half of 2011 is expected to support Australian red meat utilisation over the next 12 months.”