June 2025 Newsletter
41% of Sheep Producers Plan Flock Reductions in 2025
Amid ongoing drought and rising input costs, 41% of Australian sheep producers plan to reduce their breeding ewe flocks in 2025, according to the latest MLA–AWI Sheep Producers Intentions Survey. In regions like SA, Victoria, and southern NSW, poor pasture and high feed prices are key drivers.
In WA, market access uncertainty and the live export ban have led 58% of producers to scale back. Yet, national sentiment is improving: for the first time since 2022, all states report neutral or positive outlooks, with WA lifting from -64 to 0. Weather remains the top off-farm decision factor, cited by 50% of respondents, up from 31% in 2023.
Meanwhile, policy-related concerns and export regulations have also doubled in influence. The full May 2025 SPIS report provides valuable insight for stakeholders across the meat supply chain—highlighting both the risks and resilience shaping flock management strategies and industry expectations moving forward.
Source: Meat & Livestock Australia l June 27
Tariff Turbulence Hits Consumer Loyalty
Tariffs, inflation, and rising costs are fueling a surge in consumer price sensitivity—up 11.3% YoY across food and snack reviews. In response, leading brands are shifting from lagging indicators to real-time insights from product reviews, social media, and customer service. Tracking signals like “not worth the price” enables agile, localized pricing strategies and promotional adjustments before loyalty suffers.
Brands must also communicate transparently about price changes, emphasizing product quality and sourcing efforts. In this climate, the winners will be those who respond quickly, reinforce trust, and maintain value—without permanently slashing prices or sacrificing margin.
Source: Food Industry Executive l June 13
Spain’s Pork Market Steadies in 2025 with Expanded China Access
Spain’s pork industry remains resilient in 2025, with Q1 exports up 0.5% YoY despite flat production at 4.93 Mt. Domestic consumption surged 5.4%, and a new export protocol with China expanded access to offal markets like pig stomachs.
South Korea and the UK also increased imports, the latter temporarily filling a gap left by Germany’s FMD-related restrictions. Prices rebounded from a January low of €1.67/kg to €1.91/kg by June, supported by tighter EU supplies and firm export demand. Spain retains its role as Europe’s top pork producer amid evolving geopolitical and trade dynamics.
Source: AHDB l June 10
Supply-Chain Alert: Demurrage Soars as 96 % of World Terminals Slow
Amid ongoing drought and rising input costs, 41% of Australian sheep producers plan to reduce their breeding ewe flocks in 2025, according to the latest MLA–AWI Sheep Producers Intentions Survey. In regions like SA, Victoria, and southern NSW, poor pasture and high feed prices are key drivers. In WA, market access uncertainty and the live export ban have led 58% of producers to scale back.
Yet, national sentiment is improving: for the first time since 2022, all states report neutral or positive outlooks, with WA lifting from -64 to 0. Weather remains the top off-farm decision factor, cited by 50% of respondents, up from 31% in 2023. Meanwhile, policy-related concerns and export regulations have also doubled in influence.
The full May 2025 SPIS report provides valuable insight for stakeholders across the meat supply chain—highlighting both the risks and resilience shaping flock management strategies and industry expectations moving forward.
Source: Tradlinx l June 18
Recipe Heist? Hormel Sues Johnsonville
Hormel Foods has filed a federal suit alleging two former employees stole proprietary sausage recipes, processing data, and M&A targets before joining competitor Johnsonville.
The complaint claims ex-supply-chain chief Brett Sims and 25-year veteran Jeremy Rummel emailed formulas and market strategy files to themselves, then attempted to recruit additional Hormel staff—violating non-solicitation agreements and giving Johnsonville an unfair edge. Hormel seeks return and deletion of the data plus damages.
For meat processors, retailers, and food-service buyers, the case underscores the competitive value of IP in branded proteins and highlights the need for stringent confidentiality and onboarding controls when talent shifts between rivals.
Source: Food Market l June 24
Heavy Cuts as Prices Pass A$10/kg
Australian lamb prices climbed to fresh records in mid-June as winter tightens finished-stock availability. National Light (924 ¢/kg), Trade (1,049 ¢) and Heavy (1,041 ¢) Lamb Indicators all broke the A$10/kg carcase threshold, with trade lamb now outpricing heavy categories for the first time in three years.
Processors have shifted from weightspecific buying to a volume-led scramble to keep chains running; average weekly slaughter still hovers near 471,000 head, but seasonal shutdowns loom. Expect elevated offers —and possible fill-rate gaps—for U.S. importers until new-season lambs surface in spring. Forward book early and review portion specs to manage cost exposure
Source: Meat & Livestock Australia l June 13
China’s Restaurants Swap U.S. Beef for Aussie Cuts Amid Tariff Fallout
Amid ongoing trade tensions, Chinese restaurants are replacing American beef with Australian alternatives due to high tariffs and unstable U.S. supply. A 145% tariff spike on Chinese goods triggered retaliatory measures, including a 125% duty on U.S. beef.
Although both nations later reduced tariffs, American beef remains costly, pushing Beijing’s American-style eateries to source from Australia instead. For Australian producers and U.S. food buyers, this shift highlights how quickly geopolitical actions can reshape protein pipelines.
Buyers should closely monitor tariff risks and diversify sources where possible to stay ahead of sudden supply shifts.
Source: News.com l June 4
UK Meat Industry Pressure Forces Scotbeef Site Closure, 90 Jobs Lost
Scotbeef has permanently closed its Inverurie abattoir in Aberdeenshire, cutting up to 90 jobs as part of a redundancy process. The family-run business, a major supplier of beef and lamb to UK retailers, cited ongoing challenges in the UK meat sector as the reason.
Despite efforts to address pressures over the last 18 months, management deemed the closure necessary to protect long-term operations. Scotbeef pioneered retail Aberdeen Angus in 1993 and says it will support affected staff during the transition.
Source: The Scottish Sun l June 12
