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Beef industry tips cattle prices to rise
19 Aug 2003
Beef and cattle prices will remain buoyant in the short term despite falling cattle numbers due to the drought, but exports will decrease for the rest of 2003, according to Meat and Livestock Australia. Producers with cattle to sell will enjoy good returns for the next few years. Prices have risen since rains in February, with other factors including a strong domestic beef market, a renewed demand to restock herds, a recovery in Japanese imports, increased demand in South Korea, and the easing of competition from US beef.
However, the value of the $AUD increased 20 per cent in the first half of 2003, curtailing export prices and volumes. But providing the drought breaks in Spring and the $AUD doesn't appreciate further, cattle and beef prices are expected to rise in the short term.
MLA estimated the national cattle herd dropped 7 per cent, or 2 million head, to 26 million head in 2002-2003 due to the drought. Beef exports in 2003 will fall by 8 per cent to 845,000 tonnes compared with 2002, due to the high $AUD, a slow recovery in US import demand, and declining chilled exports to Japan.
The Age, 19/8/03.
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