June 25, 2009
Australia cattle prices to remain nearly level in 2009-10
The average Australian weighted saleyard cattle price in 2009-10 is expected to be nearly on par with that in 2008-09, as the forecast of a higher Australian dollar and lower export demand is offset by tighter cattle supplies.
Cattle supplies have tightened as producers rebuild beef herds.
In June quarter 2009, the weighted saleyard cattle price in 2009-10 is forecast to average 296cents per kg cwt, compared to 295cents in 2008-09, according to the Australian Bureau of Agriculture and Resource Economics (ABARE).
ABARE projects the Australian beef herd to grow 0.8 percent on-year to 25.1 million head in 2009-10, as producers expand cattle herds, especially across northern Australia.
In southern Australia, ongoing drought conditions have delayed rebuilding efforts and boosted cow slaughter. However, if ABARE's assumption of improved conditions into the second half of 2009 comes to fruition, female cattle turnoff is expected to tighten.
Assuming that seasonal conditions have improved in southern Australia, ABARE expects cattle slaughter for 2009-10 to remain steady at 8.8 million head. An increase in average carcass weights in 2009-10 is projected to push total production 0.5-percent higher from the previous year, to 2.18 million tonnes cwt.
