By Stephanie Gardiner 

US demand for Australian beef looks set to skyrocket as drought, disease and hefty tariffs hit other top cattle-producing countries.

Australia exported more than 43,000 tonnes of beef to the United States in July, the highest volume since October 2024, according to a Bendigo Bank Agribusiness commodity report released on Tuesday.

The extra demand came at the same time as the federal government announced it would allow imports of US beef that had been raised in Canada or Mexico but processed in America.

Australia had faced pressure from President Donald Trump to ease the restrictions on beef as it sought exemptions from wide-ranging tariffs.

As US herd numbers continued to dwindle due to drought in 2025, Americans have also been eating beef imported from Canada and Brazil.

But with Brazil facing a 50 per cent tariff, Canada slipping further into drought and a US ban on Mexican beef due to a parasite infestation, America would have to source meat from elsewhere.

Australian beef exports to the US would likely “skyrocket” as a result, according to the commodity report.

“That is now three of (America’s) top five import markets affected due to tariffs, a reduced herd or disease,” it said.

“This presents even greater opportunities for Aussie producers as the US looks to satisfy their own domestic demand with expected falling beef production.”

Australian cattle producers had anticipated that opening the gates to US-processed beef would have a limited effect on the domestic market.

“The US is already importing bucket loads of beef from from Australia, so for it to come back the other way is unlikely,” Craig Huf, a grazier and chair of the NSW Farmers Association far north coast branch, told AAP after the decision in July.

“So, in the short term, we probably don’t expect it to impact us.”

Cattle industry groups have called for an independent review into the government’s decision to lift the US beef restrictions.

“Australia has got some of the best biosecurity protocols in the world and the produce here is often bought because of its clean, green image,” Mr Huf said.

“So to jeopardise that is pretty risky, but here’s hoping the science is right.”

The total export market has been “extraordinary” in 2025, with July the highest monthly export volume on record at just under 150,500 tonnes.

For growers, widespread rainfall in July marked a turning point for winter crops across many states, the commodity report said.

“After a late break and critically low soil moisture levels through June, the late July rainfall has given growers a renewed shot at achieving average yields or better,” it said.

“While it’s come late, it arrived in time to stabilise crop potential, provided spring conditions remain favourable.”