January 16, 2013

An increased business is expected by the head of one of Australia's largest beef exporting companies because of the US drought.

Sanger Australia exports lean manufacturing beef to the US and said that product will be in demand once the drought ends and herd rebuilding begins.

Chief executive Richard Rains said US cattle numbers are at 60-year lows and Australian beef producers will take advantage of that.

Rains added, "While the drought continues, they are of course turning off more cows than what they typically would because of the drought. So, when that drought ends, there will be less lean beef from their domestic production because they'll be hanging onto their cows to try and grow their herd again. That's when we think the demand will be strongest for our lean beef."