August 13, 2007

Australian live cattle exports to decline this year

Australian live cattle exports are forecast to fall 2.4 percent in 2007, to 620,000 heads, due to the impacts of the high Australian currency and associated falls in exports to most other markets, according to Meat and Livestock Australia's Cattle Industry Projections 2007 mid-year update.

However, exports are projected to begin a recovery from 2008, reaching 840,000 head by 2011, up over 30 percent on 2006.

Australia's live export trade to Indonesia remain strong, however, with a growing feedlot sector and higher local beef prices likely to see further expansion in the short- and medium-term. Despite an expected temporary slowdown in the second half of the year, exports to this market are forecast to rise 16 percent in 2007, to 450,000 head (73 percent of total exports).

In South-East Asia, the Middle East and Africa, the high Australian dollar has made it impossible to hold onto sales, particularly given the competition from exports South American, Indian and African meat and livestock exports. Shipments to the Middle East and Africa are forecast to fall 44 percent this year, to 65,000 head, and to Malaysia by 65 percent, to 20,000 cattle.