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flag Australian beef processors face crisis as costs soar and profits collapse despite rising retail prices.

flag Australian beef processors are facing severe financial strain, with the August BPTC index revised down to 13% from 21% and September’s reading at a weak 6%, among the lowest in years. flag Rising cattle costs—up 21% for heavy steers and 35% for processor cows—outpaced stagnant export returns, with modest gains in Japan and China, flat U.S. demand, and a 3% drop in South Korea. flag Co-product revenues fell 1%, with tallow and meat and bone meal down 6%, reducing a key income buffer. flag Retail beef prices rose only 2%, limiting processors’ ability to pass costs to consumers amid high household expenses. flag The year-to-date BPTC average dropped to 63%, prompting potential operational cuts like reduced kill volumes or extended maintenance, highlighting ongoing vulnerability in a sector with narrow, volatile margins.

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