March 28, 2024

More than one-third increase in Australia's cattle exports expected this year

Australia's exports of live cattle are likely to rise by more than one-third in 2024, and beef shipments should increase by 9% as the end of a herd rebuild boosts supply, according to a US Department of Agriculture (USDA) forecast last week.

Australia ships live cattle worth about $1 billion and beef worth about $7 billion each year to markets, mostly in Asia. However, its exports fell sharply in 2021 and 2022. Wet weather allowed farmers to rebuild their herds after a long dry spell that shrivelled pastures, but they only began to recover last year.

Nevertheless, Australia will export 850,000 cattle this year, up from about 626,000 in 2023 — a four-year high — and 1.705 million metric tonnes of beef and veal, up from 1.562 million tonnes in 2023, the USDA estimated in a report dated March 19.

The biggest markets for Australian live cattle are Indonesia and Vietnam. The largest markets for beef are China, the United States, Japan and South Korea.

"With a greater supply of livestock, after reaching the end of the herd rebuild phase, along with moderate live export cattle prices, live cattle exports are set for a big boost in 2024," the USDA said. "The expected rise in Australian beef exports supports a likely rise in demand for beef imports by the United States and creates an opportunity to regain the market share it lost in recent years during the herd rebuild to its key markets, China, Japan and South Korea."

- Reuters