December 21, 2007

Australia's 2006/07 cattle and sheep herd declines

The numbers of cattle herd and sheep flock in Australia for 2006/07 both declined due to drought that brought down productivity rates and forced producers to increase turnoff.

Figures from Australian Bureau of Statistics (ABS), Principal Agricultural Commodities, Australia Preliminary 2006/07 show that Australian cattle herd is estimated to fell by 1 percent in the year to 30 June 2007, to 28.2 million head, while sheep numbers plunged 5.2 percent, to 86.3 million head.

The decline was largely noted during the second half of 2006 due to dry winter and spring across southern Australia increasing turnoff rates, slashing winter grain supplies and impacting on stock breeding.

The 2006/07 drought had a much larger impact on sheep numbers than on cattle, given the southern concentration of Australia¡¯s sheep flock. Indeed, regions of northern Australia reported an average to good season for cattle, helping to offset the poor season in the south.

As of 30 June 2007, Australian sheep flock is estimated 86.3 million head, decreasing by 16 million head since 2005, and is at its lowest level since 1925. The Australian sheep flock has been in an extended period of liquidation since reaching 170 million head in 1990.

In recent years, the intention of producers to rebuild flocks, assisted by the favourable return for lambs, has been consistently overshadowed by the impact of drought.