Two months ago I posted about boxed beef prices not keeping up with live cattle prices. This meant AAC's meatworks strategy appeared flawed contributing to the disappointing profit outcome in May. Interesting Macquarie Bank analysis as quoted in the SMH.
"Meat prices, particularly beef, have increased sharply over the quarter. However, Woolworths appears to have decided not to pass the cost on to consumers.
Woolworths kept its meat prices steady over the quarter compared with prices at Coles, which grew 0.7 per cent.
The low Australian dollar is driving up the cost of meat, especially beef, as overseas buyers take advantage of the improved trading conditions to buy more Australian product. The price pressure is expected to continue on the back of the soft dollar.
Coles does not appear to have done as much to contain increased meat prices."
Does this provide some hope that boxed beef prices are catching up with cattle prices?
Two months ago I posted about boxed beef prices not keeping up...
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