August 16, 2005

Australia's cattle exports record low in 10 years

Australia's live cattle exports have slumped to their lowest level in a decade and may worsen. Exports stood at 624,000 head in the last financial year, a drop of 9 percent from the previous year, according to the Meat and Livestock Australia (MLA).

Export falls were the most drastic to Malaysian and Philippine markets.

MLA chief market analyst Peter Weeks said the rising Australian dollar and high cattle prices in local markets contributed to this turn of events. Cattle prices had since risen to record levels to Japan, Korea and the US.

Local industry body Livecorp also pointed out the high oil prices and stricter animal welfare rules contributing to rising Australian cattle prices, thus resulting in lower exports.

However, Australia's Northern Territory has since bucked the low-export trend¡ªits exports are up by about 8 percent this year at 114,000 cattle, mainly to Indonesia.