April 27, 2007

Beef prices in Queensland to rise as state runs dry

Beef prices in Australia's Queensland state are expected to rise as farmers are opting to sell tens of thousands of head from drought ravaged properties or move long distances to greener pastures.

"People have started moving cattle to wetter areas further north for agistment, or they are being sent to the sale yards," said Peter Kenny, the president of the Queensland farmers organisation Agforce.

Dam levels in south east Queensland are falling at a rate of 1 per cent per month, prompting warnings by water experts that they could run dry before recycled and desalinated water becomes available.