Australia to benefit from Argentine beef export cuts

Argentina's decision to cut its beef exports is expected to boost Australia's sluggish cattle industry.

Argentina's exporters said shipments have been stopped in an effort to boost local supply and keep domestic prices low. Australian beef sales surged when Argentina took similar action about two years ago, and that situation is expected to repeat.

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

The export cut will provide some support to prices in markets like Russia, which is very important to Australia for its frozen grass-fed products, and markets like Hong Kong are likely to turn to Australian supply, according to Voss.

Prices will also improve on the back of higher demand, she added.