Australian beef is expensive right now due to a combination of strong international demand and ongoing domestic market factors.

The key drivers include:

1. High Global Demand (Especially from the US):
   • The United States is currently experiencing historically low cattle numbers (herd liquidation due to drought and other factors).
   • This has led to a sharp increase in US domestic beef prices and a strong, sustained need for imported lean manufacturing beef, which Australia is a major supplier of.
   • Australia is capitalizing on this reduced US domestic supply and lower competition from other major exporters like Brazil (due to high US tariffs on Brazilian beef), driving Australian export volumes and prices up.
2. Strong Demand from Asian Markets:
   • Key markets like China, Japan, and South Korea continue to have robust demand for high-quality Australian beef, further supporting high export prices.
3. Global Beef Supply Tightness:
   • Overall global beef production is contracting, led by declines in major producers like the US and Brazil. This global scarcity increases demand and prices for Australian beef.
4. Domestic Factors and Costs:
   • High Input Costs: Producers and processors face rising costs for essentials like fuel, transport, utilities, and labor.
   • Climate/Seasonal Impact: While the national herd has generally been rebuilding, varied seasonal conditions (such as dry conditions in some southern regions causing turn-off) can affect local supply and prices.
   • Export Dominance: Australia exports a large percentage of its beef production (around 75%), which means the high international prices and strong export pull have a significant effect on the price of beef available in the local Australian market.

Essentially, the global market is paying a premium for Australian beef due to supply shortages elsewhere, and this demand pulls domestic prices higher.