July 20, 2004

 

 

Record Beef Cattle Prices Seen In Parts Of Australia

 

The beef cattle market in the Upper Manning has been affected by recent events, thereby culminating in record high prices for Australian producers.

 

According to Mac Elliot, Mid North Coast Beef Cattle Officer for the NSW Department of Primary Industries, 70 per cent of cattle produced in the region is for export.

 

Overseas demand continues to be strong for beef cattle produced locally - particularly from Japan and America. Australian beef is renowned for its disease and chemical free status.

 

Recent outbreaks of 'foot and mouth' and 'mad cow' disease in other countries however, have increased the demand for Australian beef even further. For example, America is no longer allowed to export beef cattle to Japan and as a consequence the demand for Australian beef has increased.

 

With supply and demand the basic factors affecting any market, this high demand is exacerbated by the variations in drought levels across the state influencing supply and creating what Mr Elliot describes as "very unusual circumstances for the region."

 

While the Mid North Coast and Hunter region have been severely affected by the current drought, there has been recent substantial rain in the Riverina, and up and down the western side of the ranges.

 

As a consequence, producers to the west of the ranges are more likely to hold on to their stock so there is less on the market. With less supply and continuing high demand, prices have been forced up even further although Mr Elliot points out that this market situation cannot continue for long periods.

 

Cattle prices have reached as high as $1.50 per kilogram live weight whereas in the past it has been as low as 80 or 90 cents.

 

With these high prices and continuing high demand, drought affected producers across the Mid North Coast who are finding it harder to feed their stock are taking advantage of the situation and selling stock in relatively large numbers.

 

Mr Elliot believes that it is "the sensible thing to do" for local drought affected producers to sell their cattle and make the most of the "record prices."

 

According to Mr Elliot, one way of ensuring that the demand for Australian beef remains high in the future is through the phasing in of the new National Livestock Identification System (NLIS).

 

NLIS is an identification and tracing system for all Australian beef cattle providing a clear history for each beast produced. The system will be phased in from July 1 this year.

 

With the deregulation of the dairy industry in 2000 many dairy farmers are looking to diversify and the record high prices for beef cattle are becoming increasingly attractive.

 

There is no doubt the agricultural market in the Upper Manning is undergoing some interesting shifts and with various local and international factors in constant flux the future is far from certain.