December 14, 2004

Australian Beef, Milk Revenue Expected to Increase

The values of Australia's beef exports and dairy produce are forecast to rise this financial year.

According to the Australian Bureau of Agricultural and Resource Economics (ABARE), the increase is expected to be $200 million to $4 billion.

ABARE research manager Jammie Penm says Japan's ban on United States beef, which has since been lifted, boosted the value of Australian beef exports.

The outlook for prices and export value will depend on the resumption of trade between the US and Japan, he added.

"There's a fair bit of uncertainty in terms of magnitude of the resumption, and also when a large increase in US beef exports to Japan will happen," he said.

Struggling dairy farmers are also expected to be paid more for their milk this financial year.

ABARE expects the value of dairy products to increase by $200 million to $2.4 billion.

Mr Penm says significant increases in international prices have filtered through to the farm gate.

"We are forecasting that milk prices will increase by close to 9 per cent to close to 29 cents a litre in this financial year," he said.