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Outlook strong for beef sales
24 Aug 2004
What's bad news for cattle is good news for Australian cattle farmers, as beef exports are tipped to hit the one million tonne mark by 2008. The previous best performance was in 2001 when exports hit 950,000 tonnes.
Meat and Livestock Australia's latest report says the future looks bright due to strong demand and Australia's safe food reputation. But MLA warned that reliance on just four main markets leaves the industry vulnerable to external shocks.
MLA said exports of Australian beef to Japan are expected to rise by 100,000 tonnes to 375,000 tonnes this calendar year. Once the US re-enters that market, however, there will be a sharp correction in export flows and prices, but prices are likely to remain above historical averages.
The only short-term problem is the continuing effects of the drought, which will hold back beef farm incomes over the next few years, due to lower cattle sales and the high cost of replacement stock. The total number of cattle slaughtered is expected to fall somewhat this year, but better weight is expected to boost overall beef production.
The Age, 24/8/04.
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