February 16, 2010

Australia to boost cattle exports as Argentina cuts shipment

Australia's sluggish cattle industry will receive a boost as major competitor Argentina cuts exports.

Argentina is slowing its shipments to boost local supply and keep domestic prices low. Australian beef sales surged when Argentina took similar action about two years ago.

Wendy Voss, from Rabobank, says it's still unclear how severe the restrictions will be, but Australia is sure to benefit.

"Certainly, it should provide some support to prices in places like Russia, which is very important to Australia for our frozen grass-fed products," she says.

"Places like Hong Kong, if you see restrictions from Argentina, will support us, because they do export to Hong Kong. And as demand does pick up, it certainly will support improved prices."