January 11, 2005

Australian Cattle Council Predicts Higher Prices, Returns for 2005

Australian beef producers can expect record good times in 2005, if predictions from the Cattle Council are correct.

The industry's peak producer body is tipping higher cattle prices, increased production and a record return from chilled beef exports.

The Council's Brett de Hayr has said that 2005 will be unique with a shortage of supply in Australia and overseas, mixed with increased demand, thereby creating a very positive outlook.

Australian exports last year grew by 9 per cent in volume and 18 per cent in value, to hit a record $4 billion, a figure Mr de Hayr said that could go even higher in 2005.

"The council says more farmers will recover from drought, making fattening cattle easier; while the beef property boom, which has seen farm values rise by 40 per cent in the last three years, should continue," he said.

Australia is also tipped to retain market share in our largest export destination, Japan. Mad cow disease, however, remains the greatest threat to the industry.