Beef prices might be at a record high across Australia but experts say red meat lovers can expect retail costs to "flatline" soon.

With eye fillet cuts averaging more than $50 per kilogram and the cost of mince having doubled over the past two years to over $10/kg, it has never been more expensive to buy a good cut of red meat.

"While we have seen a significant rise in prices; Australian remains the fifth largest beef consumer in the world on a per capita basis," said Ben Thomas from Meat and Livestock Australia (MLA).

The biggest consumers of meat are the United States followed by Argentina, Uruguay and Brazil.

Robert Constable, NSW chairman of the Australian Meat Industry Council, said prices aside, red meat consumption had generally been in decline since 2002 due to "changing lifestyles".

"Meat and Livestock Australia were very good about telling people to have smaller portions of meat, and I think it was very successful, but it wasn't good for the industry," he said.

"The good news about the benefits of eating beef, lamb and pork haven't gotten out.

"The rise in chicken has played a part of it also. Chicken consumption per capita is up by 10 per cent."

Mr Constable is also a retail butcher in Sydney.

He said individual consumption of meat per capita had declined from 37/kg a year to about 28/kg.

Supply and demand



Mr Thomas said significant rises in retail beef prices were cyclical "about every six to eight years" and should "flatline in the foreseeable future".

But he said the hike over the past couple of years was a result of two factors — shortage in US beef production and a drop in cattle herd numbers in Australia.

Higher rainfall in 2017 has rejuvenated the Australian cattle market. ( ABC TV )

The US is the world's largest beef producer and a shortage across the country about two years ago caused a ripple effect around the world, Mr Thomas said.

On home soil, he said Australia was trying to climb back from its smallest cattle herd in two decades.

"We went through a significant herd liquidation on the back of there being widespread drought conditions across New South Wales, Queensland and Victoria," Mr Thomas said.

"Now what we're left with is a cattle herd that's only 26 million head.

"We've only ever seen this drop once before in the '70s."

A normal Australian cattle herd is around 28 million.

Tough new rules brought in by the Indian Government last week that ban the sale of cattle and buffalo for slaughter at livestock markets could have a knock-on effect and increase world meat prices.

Many in the industry however said this could be good news for Australia and would increase the demand for Australian meat.

Mr Constable said he believed the ban should not affect prices in Australia as most retailers "would wear the cost" if there was any impact on wholesale prices.

"By October 2018 I think the wholesale price of beef in Australia will be 80 cents to $1 less than what it is now," he said.

"I actually believe meat is cheap, because of the process it goes through to get to the consumer, it's a massive chain and massive expense."

Where does all that Australian meat go?

Seventy per cent of Australian beef produce is exported, followed by lamb at 55 per cent.

Of Australian mutton and goat meat, 95 per cent is sent overseas.

Most of our beef exports go to the US, which hit record highs in 2015 equating to about 400,000 tonnes or one-third of all Australian beef.

Thirty per cent of Australia's cattle industry is reserved for domestic consumption. ( ABC Rural: Lara Webster )

"The majority of what we send is manufacturing beef, lean trimmings that they blend to make hamburgers," Mr Thomas said.

"There has been a continued rise in grass-fed muscle cuts up to America which is the more premium end of the market."

Muscle cuts include tenderloin, scotch fillet and rump.

Mr Constable said most of the beef sent overseas was of a lesser grade than that saved for the domestic market.

"Australian consumers eat animals that are mainly four years or less of age," he said.

"Some manufacturing-style beef comes from the US or Canada.

"No lamb in Australia is from overseas."

Mr Constable said bacon bought from larger food chains would likely be frozen and imported from overseas.