Key resources and information for Red Meat Processors

Key resources and information for Red Meat Processors

Recent conflict in the Middle East is directly impacting red meat processing businesses through both increased costs and disruption of supply chains. AMPC is working closely with industry, our peak body and government to help red meat processors navigate these challenges. This page includes key resources and information for processors and will be updated as the situation unfolds.


Official information and updates

A range of measures have been announced by the government to support businesses impacted by the conflict in the Middle East, including tax obligation flexibility and interest free loans. More information on the situation and support measures are available below.

This page includes key resources and information for processors, and will be updated as the situation changes.

Middle East response: what Australian businesses need to know | business.gov.au

Australia’s fuel security – DCCEEW

Minimum stockholding obligation (MSO) for liquid fuels: statistics – DCCEEW

Fuel Supply and Supply Chain Watch (Australia Industry Group)

Terminal Gate Prices | Australian Institute of Petroleum (updated daily)

We invite you to provide direct feedback via our confidential feedback channel, helping ensure processor insights are reflected in information provided to AMIC, our peak body, and DAFF:

https://campaign.ampc.com.au/middle-east-conflict

Direct impacts from fuel and plastic price spikes

The price of diesel has risen around $1.80/l in 2024/25 to around $3.30/l (at the time or writing). Red meat processors rely on liquid fuel for the following essential activities:

  • Incoming transport of livestock
  • Incoming transport of processing consumables, packaging and other inputs
  • Movement of staff, contractors and service providers
  • Outgoing transport of meat, skins and hides

The price of plastic materials has also increased by around 30% this financial year. Red meat processors rely on plastics for packaging and various essential processing consumables.

Indirect impacts from supply chain disruptions

Disrupted supply chains are impacting red meat processors in the following ways:

  • Sea freight delays, disruptions, returns and cost escalation
  • Potential challenges in livestock supply chain (producers, feedlots)
  • Potential increase in energy costs.
  • Escalating costs for capital works, trades, auditing and other on-plant services.

Quantifying cost impacts on red meat processors

The following AMPC analysis models the direct cost to red meat processors from current fuel and plastic price spikes, and potential future scenarios. 

The modelling shows:

  • Fuel and plastic price rise in 2025/26 cost processors an additional $422 million or a 5.8% increase from 2024/25. This equates to an additional $31 per head for cattle and $3.7 per head for sheep.
  • Every 10c/l rise in diesel costs adds an additional $24.9 million cost to industry, equivalent of $1.82 per head for cattle, or $0.22 per head for sheep.
  • Every 10% rise in plastic prices above 24/25 levels, adds an additional $21 million cost to industry, equivalent of $1.54 per head for cattle, or $0.19 per head for sheep. 

Note this analysis considers only the impact of price increases and does not account for potential disruption to livestock supply, plant production and trade activity. These impacts may be significantly higher.