The Red Meat Advisory Council (RMAC) and its members are disappointed in the United States’ decision to impose tariffs on Australian red meat exports destined for the US.
RMAC chair, John McKillop, said the decision to impose a 10 per cent tariff on goods imported to the US failed to recognise that Australian red meat contributes to stable food supplies and prices in the United States.
“While Australian meat exports will shortly be subjected to a 10 per cent tariff, there is no ban on Australian red meat and our trade with the US will continue,” Mr McKillop said.
“However, it remains a disappointing decision from the US, in stark contrast to our 20-year partnership under the Australia-United States Free Trade Agreement (AUSFTA).
“Last year, 2024, was a record year for Australian red meat exports, driven by strong global demand. Australian producers can be assured that we operate in a strong global trading environment with high demand for our red meat from over 100 markets.
“It’s critical to note just how diversified Australia is with our red meat exports. Other major markets include Greater China, Japan and Korea, worth A$3.9B, A$2.6B and A$2.5B respectively. The Middle East / North Africa Market is worth A$2B and offers demand growth opportunities.”
Mr McKillop said the Australian red meat industry, in partnership with the Australian government, has worked to alleviate economic trade barriers, including tariffs, via the negotiation of free trade agreements over a number of years. As a result, 91 per cent of beef, 74 per cent of sheepmeat and 89 per cent of goatmeat exports traded globally are covered under existing FTAs, which remain effective.
“The US was Australia’s largest red meat export market in 2024, worth A$6.07B, almost one third of total global exports,” Mr McKillop said.
“The US will continue to be a key market despite these tariffs.”
Mr McKillop said RMAC would work with its members and industry service providers including Meat & Livestock Australia to support the industry to deal with changes to the trading arrangement with the US.
“In addition to forming an industry taskforce to respond, we are also working very closely with the Australian Government to restore free trade between Australia and the United States – as underpinned by the AUSFTA,” he said.
“As an industry, we will continue to leverage existing industry initiatives that build demand for Australian red meat around the world. We will also be working as an industry to ensure producers and the entire supply chain are informed about what this change means for them in order to make the best possible business decisions.”
Mr McKillop said the decision would impact US consumers.
“Imports serve as a shock absorber during cyclical supply fluctuations when US meat production is down. This is the case at the moment with their overall herd at 70-year lows due to drought. Cow slaughter in the US was down 23 per cent in 2024 and expected to decline near 10 per cent in 2025,” Mr McKillop said.
“This means that imports are critical for the US to supply their domestic consumers.
“For beef, a major component of Australia’s exports to the US supports a strong appetite for hamburgers. Without Australian lean beef blended with local fatty trim, the US would need to use higher value cuts in their burgers and miss out on valuable export opportunities. This in turn optimises value for US ranchers.”
“Australian beef is in an estimated 6 billion hamburgers consumed each year in the US and this tariff will cost the US consumer an additional US$180b per year.
“The total impact to the American consumer as a result of tariffs on Australian red meat will be AU$600m.”
According to recent economic analysis from Steiner Consulting Group, in 2024, Australian beef imports supported $377 million in added value for US cattle producers, equal to approximately A$15 per head.
“For industries like lamb and goat, Australian product ensures stability of supply and services local demand that cannot be met domestically,” he said.
“In addition, imported lamb and goatmeat help sustain, or even expand, consumer demand for these products, ensuring that American producers will stand to gain as more consumers become interested in lamb and goat.”
Domestic lamb production increased by three per cent in the US in 2024, and further growth is expected in 2025 and 2026 due to rising lamb inventories. Per capita lamb consumption in 2024 was estimated at 671 grams per person, a 57 per cent increase from 2011 levels.
In 2024, Australia exported $5.7 billion worth of red meat to the United States. This included 394,716 tonnes of beef worth $4.16 billion, 104,210 tonnes of sheepmeat worth $1.35 billion and 22,559 tonnes of goatmeat worth $188.5 million.
