June 9, 2004

 

 

Australian Beef Exports Improving
 

Drought, the strong Australian dollar and falling prices have conspired to make life very tough for Australia's livestock farmers in recent years.

 

But finally things - in particular our export markets - appear to be improving.

 

The Aussie dollar has lowered, there is less competition from the US and the limited beef available for sale in Australia means demand is now outstripping supply.

 

The price of 5200 head of cattle sold at the Roma saleyards yesterday confirmed that positive outlook with heifers and steers recording strong gains of up to 10¢ a kilogram.

 

While there are several stages between producers selling their beef at saleyards and it ending up on a supermarket shelf, consumers have been told to expect a slight increase in the price of their beef.

 

Auctioneer Brad Neven, principal of Watkins and Company which was involved in yesterday's sales, said while the rise in the price of cattle was good news for producers, it was countered by the fact that producers had fewer cattle to sell because of the flow-on effects of the drought.

 

He said many producers were functioning at only 50 to 60 per cent capacity because they were forced to sell off their breeding cattle during tough times.

"Today's process was driven by major gains recorded within the export market," Mr Neven said.

"Future predictions for the export markets look reasonably sound.

 

"Providing export market conditions hold and rise further we expect to see more gains within the stall market (the first stage in the process where producers sell their cattle)."

 

Fourth-generation Rockhampton cattleman Graeme Acton said Australian's current overseas market looked the best it had in his lifetime.

 

Mr Acton said the next five to 10 years were shaping up as extremely good for Australian cattle farmers.

 

"Consumers are going to be paying slightly more for their beef but we're all going to have to bear that - cattle producers are deserving of a higher price for their product," he said.

 

Queensland Livestock Exporters Association president Angus Adnam said his major buyers - Indonesian feedlots - had been surprised by the Australian cattle market's recent strength.

 

"(The increased price at Roma) reflects a generally strengthening in the market which has come as a little bit of a surprise," he said.