May 5, 2004

Australia Cattle Industry Will Take Time To Recover

Australian Bureau of Agricultural and Resource Economics (ABARE) executive director Dr. Brian Fisher says it will take several years for Australian cattle numbers to return to pre-drought levels. He says export markets for beef remain strong. This is partly due to the exclusion of U.S. beef from Japan and Korea following a BSE incident late last year.

"Saleyard cattle prices are forecasted to remain high in 2004-05, with strong local demand for herd rebuilding and an assumed continued ban on US beef to Asia until the end of the 2004," Fisher said.

However, seasonal conditions across Queensland are patchy after rain earlier this year. Fisher says, "The prospects for winter cropping in Queensland are mixed after good rain in many grain growing areas earlier this year. If conditions remain favorable, wheat and coarse grain plantings are projected to rise in 2004-05 following two poor seasons."

He says the rebuilding of cattle herds in some areas is being slowed down by the dry conditions and patchy pasture growth.