The beef with burgers is the price
- Australia’s plant-based meat sector could hit $3 billion annually by 2030.
- Beef prices hit a 3-year record high rising to an average $24.72 per kilogram.
- Burger joints either have to increase beef burger prices or turn to plant-based options.
Beef prices in Australia hit a three-year record high recently meaning some burger joints are jacking up prices, or turning to plant-based options as an alternative to retain customers.
Recently, the price of beef has risen to an average $24.72 per kilogram, as government data shows that the average Aussie saleyard prices are expected to increase by more than 11% for cattle and 8% for lambs in 2021–22.
Grill’d, which is an Australian-owned restaurant chain specialising in healthy burgers, has flagged increasing the prices of some burgers in the coming months, on the back of supply chain costs and inflationary pressures.
The fast food chain is also turning to more plant-based burger options, with recent reports suggesting sales for Grill’d in that segment had risen from 5% to 15% across its restaurants.
Fast food juggernaut McDonald’s introduced its meat-free range several years ago and in November 2020 it revealed the McPlant. However, in the middle of last year it announced it will longer offer its McVeggie burger after poor sales.
Yet the plant-based meat sector is poised to grow as the cost of beef and other meat products also grows exponentially. Last year, a Deloitte report forecasted that consumer sales in Australia’s plant-based meat sector could hit $3 billion annually by 2030, a massive growth trajectory from $185 million in FY20. It’s also expected to create more than 6,000 jobs.
Comparatively, the value of Australia’s cattle meat production sector is forecast to grow by 16% to almost $15 billion. The value of the sheep and lamb segment is also expected to surge by 16% to $4.9 billion.
According to the Department of Agriculture, Water and the Environment the gross value of production for the livestock sector is forecast to increase by 8% to $33.4 billion in 2021–22. This is due to an increase in prices of most meat and livestock products.
So the next time burger-lovers are looking at the burger menu, the decision on your choice of burger will come down to not only what type, but the cost, and whether it’ll be beef or plant-based.
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