Australian wagyu beef industry confident about exports despite tariff threat

Australia Broadcast Center

28-04-2025

Australia's wagyu beef industry is set to capitalise on growth opportunities amid record-low cattle numbers in the United States and less competition for its premium beef product in world markets.
Despite potential tariffs under consideration by the US government, industry leaders and producers remain confident that Australia's high-quality wagyu beef will continue to command premium prices and strong demand.
South Australian producer Scott de Bruin said he was not deterred by the threat of US tariffs.
Mr de Bruin, the managing director of Mayura Station near Millicent on South Australia's Limestone Coast, said its full-blood Wagyu cattle were first imported into Australia in 1997 and the herd's ancestry, bloodlines and pedigree were distinguishing factors in world markets.
Australia's wagyu industry is about four times larger than America's sector.
(
ABC South East SA: Elsie Adamo
)
Mr de Bruin said he did not see a 10 per cent tariff significantly impacting his business.
"I think it [America] is still a fantastic opportunity,"
he said.
"Overall, the American cattle herd is at 70-year lows … they do really need beef from other countries.
"When you've got a high-quality article, I believe those customers that want to consume high quality are not going to be bothered by another 10 per cent."
Scott de Bruin holds a tomahawk wagyu steak.
(
ABC South East SA: Elsie Adamo
)
His comments follow
While Australia will be subject to a 10 per cent reciprocal tariff, the president has yet to detail any specific response to Australia's beef sector.
Quality in demand
Global AgriTrends meat and livestock analyst Simon Quilty said it was an "outstanding time" for the sector with the opportunities and challenges dependent on the quality of the wagyu.
This class one fullblood wagyu competition entry from Mayura Sation had a nine-plus rating.
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Supplied: Australian Wagyu Association
)
Within Australia, the quality of a cut of wagyu is determined by its marbling score.
A score of zero indicates no marbling, while a score of nine indicates extraordinary amounts of marbling.
A nine-plus indicates the meat exceeds current Australian standards.
"In the last year we've seen zero-to-three marble score in America really be challenged, so those products tend not to go to America these days because there is no home for them," Mr Quilty said.
"Those that are producing five to seven … those higher marble scores stand out on their own and they today from Australia trade at a significant premium above the best in America.
"That's where the best return for Australian exporters is.
"
The lack of supply in America is very tight, and therefore the demand for the quality end is still there.
"
Backfilling America's shortfall
However, North America is not the only opportunity for Australian producers – with Australian exporters already benefiting from American export shortfalls in key markets in the Middle East and South-East Asia.
Mr Quilty said if America implemented further tariffs, it could open the door for Australia to better compete against US beef internationally.
Wagyu beef is high in marbled white intramuscular fat, providing a full flavour and creamy texture.
(
ABC South East SA: Elsie Adamo
)
"[American] exports have fallen and as a result of that we have seen less and less of that high-end-choice prime in these markets, which then has created opportunities for Australian wagyu outside of America," he said.
"You're not only getting less product come out of America, but it will be priced higher, therefore making Australian beef more attractive.
"Australia sits in a unique position as a producer of grain fed of a standard that matches America."
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