November 15, 2004

Australian Producers Expected To Take Advantage Of Higher Prices

Australian beef exports are forecast to remain at 1.3 million tons in 2005.  A marginal decrease in beef production is anticipated as Australia balances herd rebuilding with current high beef prices.  Pasture conditions have improved this year following what was the worst drought in a century.  However, prices are relatively high in Japan, Korea, and the United States, which are pulling Australia's exports away from smaller markets. 

As of August 2004, Australia's year-to-date beef exports to Japan were up 42 percent and beef exports to Korea were up 32 percent.  Producers are expected to continue taking advantage of higher prices due to lower competition in other markets, which will lead to increased exports to these markets and reduced domestic consumption in Australia.