September 1, 2011

 

Northern Australian farmers still affected by live cattle export ban

 

 

The strong dollar, together with the fallout from the live cattle prohibition, has caused many northern Australian cattle farmers to struggle, according to Meat and Livestock Australia.

 

Chief economist for Meat and Livestock Australia, Tim McRae, said cattle prices had dropped by up to AUD0.15 (US$0.16) per live weight kilogramme after the ban and the high Australian dollar had meant a double whammy for the industry.

 

"The ban has had a very big hit across the north because live export was the major outlet for their cattle," he said.

 

"Producers, particularly when the ban was in place, have seen their property values fall, their sale prices fall and that comes right back to the income in their pocket and the plans they have in the following year."

 

"It is one of the biggest concerns in probably decades."

 

Exports resumed in early August but only a handful of companies have export permits.

 

McRae said prices were starting to slowly recover because slightly fewer cattle were available at the right weight for export.

 

But the Australian dollar was also working against the industry, as well as a decrease in demand from major importer Japan after the earthquake and tsunami.

 

"At the moment, the high Australia dollar is having a huge impact on our international competitiveness and that is going to have a long, slow impact on our industry over time," he said.

 

"I do not think anything can be done about it."

 

Richmond Mayor John Wharton said few north Queensland cattle were being exported.

 

About 7000 head were expected to leave the port of Townsville within days, bound for Indonesia, the first shipment out of north Queensland since the ban was lifted.

 

Wharton said the industry was expected to start pressuring the federal government to increase the live export assistance package.

 

"We have got motions on the floor to crank up that live export assistance package so we can see this through."

 

On June 30, the federal government announced AUD30 million (US$32.1 million) in cash support to businesses affected by the ban, in the form of AUD25,000 (US$26,783) in cash grants per enterprise.