AUSTRALIAN red meat processing costs continue to rise and remain higher than key international competitors in New Zealand, the United States and Brazil, a new study has found.

The cost-to-operate analysis commissioned by the Australian Meat Processor Corporation, repeating a similar study a decade ago, analysed operational cost data from 28 processing facilities accounting for 57 percent of total cattle slaughter and 34pc of sheep/lamb slaughter in the nation. The analysis looked at a range of costs including inputs like labour, energy and other utilities, packaging, transport and repairs and maintenance. It did not include livestock purchase cost.

The AMPC study found Australian processing businesses were seeking to offset rising operating costs and higher levels of regulation through innovation and productivity improvements as they work hard to remain competitive on the global playing field.

Time has beaten us to do a more detailed analysis of the study today, but we will circle back for a deeper dive either tomorrow or Monday (Brisbane Ekka commitments permitting).

As reported earlier, (prior to the release of comparisons with other beef exporting nations) the results show the average beef processing costs in Australia reached A$531 per head in 2024/25, a rise of 47 percent in the past nine years – well above the 29.5pc rate of CPI inflation over the same period.

When compared in Australian dollar terms, processing costs in the US and New Zealand were estimated at A$527 and A$519 respectively – showing some convergence with all three above $500/head – while Brazilian beef processors continue to enjoy significantly lower costs of A$$379 per head.

However, when looked at in percentage terms, a somewhat different signal emerges.

Compared with the previous, similar analysis in 2015-16, the nominal percentage increase in Australian beef processing cost to operate at 47pc, compared more favourably than an 81pc rise in the United States (grain-fed), 119pc in Brazil (grass-fed) and 70pc in New Zealand (grass-fed).

Of considerable concern was the finding that 51.3pc of beef processing costs and 50.7pc of sheep meat processing costs are considered to be regulatory costs. However this did not necessarily mean the costs are set by government, only that they are subject to government influence in a material sense, the report authors found.

Regulatory costs in New Zealand were around 40pc of the total, and in the US and Brazil, around 30pc, pointing to considerable competitive disadvantage for Australian processors.

Sheep meat

Sheep meat processing costs have risen even further, reaching A$64.31 in 2024/25, up 58pc in nine years and slightly above New Zealand sheep meat processing costs of A$63.69 per head.

Since the analysis was completed based on 2024/25 data, processor operating costs have further risen by an estimated 10.7pc, taking 2025/26 costs to more than $587 for cattle and $70 for sheep and lambs. This represents a rise of 63pc and 73pc in the last decade respectively.

The largest increase in costs for processors occurred in transport, repairs and maintenance as well as registration and certification costs.

The research, conducted by SG Heilbron Economic & Policy Consulting, investigated red meat processor costs to operate during the 2024/25 financial year, with comparison to previous analysis in 2015/16.

Australian Meat Processor Corporation chief executive officer Edwina Toohey said the research provided valuable benchmarking data for the industry.

“It is critically important for our industry to understanding of our competitive position on the global stage, particularly given the current uncertainty in market access and supply chains,” she said.

“While Australian red meat processors continue to operate in a high-cost environment, we continue to set the standard in meat quality, food safety and innovation.

“Our industry plays a crucial role in the agri-food supply chain, supporting high value Australian exports and delivering local and regional jobs.”