July 6, 2015

Backed by increased global demand and a declining Australian dollar as well as local droughts playing a part, Australia's beef exports sprung 18% from 2013-14, achieving close to 1.34 million tonnes in 2014-15, according to data by the Department of Agriculture.

Southeast Asia, Japan and the US will continue to drive the exports demand for Aussie beef and live cattle, said the Australian Bureau of Resource Economics and Sciences which previously forecasted a lower 1.22 million tonnes in delivery volumes. In 2014-15, Japan received 303,483 tonnes of imports while US brought in 471,242 tonnes, the Department of Agriculture reported.

The Bureau of Resource Economics and Sciences also expects the value of beef exports to dip, from $8.8 billion in 2014-15 to $8.5 billion in the present financial year. On the other hand, cattle prices may jump up by 17% in the current financial year due to a falling beef herd in the country. The number of cattle had dropped to 23.25 million head in 2015-16, compared to an estimated 24.11 million head in 2014-15.

With a massive spell of drought scorching Queensland, northern New South Wales and Victoria, Australian cattle slaughter will stay elevated during the first half of 2015-16. Production of beef reached 709,946 tonnes as 80% of Queensland fell under the heat and cattle were rushed to the market. The key producing region of Australia witnessed the biggest increase in female cattle slaughter in the past year, with a 17% rise year-on-year.

In 2014-15, Australia's beef output will increase 9% to 10.2 million head for the production of 2.7 million tonnes of meat in 2014-15. However, with better weather and the rebuilding of herds, the next financial year may see a 9% decrease of slaughters, to 9.2 million head.