U.S. beef producers can begin sending fresh and frozen beef to Australia starting today.
USDA confirmed the agreement last week. NCBA says it is a long time coming, noting U.S. beef producers have been locked out of the Australian market for 20 years. During the same time, officials say producers there have sent around $29 billion worth of beef onto U.S. shores.
However, down under, cattle groups say they are not worried. Executives at Cattle Australia say their domestic beef prices are lower than in the United States, largely because their herd is bigger.
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One trader said the products entering the U.S. are primarily grind and trim, noting that the volume and type of beef, on its own, should not cause a major disruption. However, he says fund traders are reacting heavily to headlines rather than market realities.
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