July 5, 2011

 

Australian southern beef prices unaffected amid export ban
 
 
The price of cattle in southern markets is unhurt by the live cattle export prohibition, according to Meat and Livestock Australia.
 
Tim McCrae, chief economist with MLA said the issue with Indonesia has created uncertainty and is denting confidence, but it is not the main problem.
 
He said the high Aussie dollar and a slump in Japanese demand is the main reason the price for heavy cattle has fallen below that of last year.
 
"Remember that we send about 25% of all the beef we produce to Japan so when there is a slowdown in that market, we see ripples right through that industry.
 
"And the heavy steer prices are back below where they were last year.
 
"Young cattle prices are still holding up very well, but that has got a lot to do with the season."
 
Tim McCrae said the impact of the stalled Indonesian trade on northern Australian cattle sales is dramatic.
 

He said it is difficult to pin down an accurate price fall, but some cattle producers cannot sell and that could end their business.

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