August 21, 2014
 

Australia: Prices not helped by increase in live cattle exports

While live cattle exports from Australia have risen by 79% on-year, the average financial performance of the country's beef cattle producers is estimated to have declined.

Data were provided by the Australian Bureau of Agricultural and Resource Economics and Sciences, and Meat and Livestock Australia.

With an export figure of 1.13 million cattle valued at US$970 million, the 2013-14 financial year represents the highest fiscal year volume on record.

Australia's largest export market was Indonesia who purchased a total of 624,749 cattle - double the number of the previous financial year. Vietnam was Australia's second largest market at 131,367 head of cattle, an eightfold increase from the previous year. Neighbouring Cambodia has also recently opened its doors to live cattle exports from Australia.

However, Australian beef cattle producers have experienced a financial decline resulting from lower beef cattle prices, as beef cattle turn-off increased in response to continued dry seasonal conditions and historically high beef cattle numbers in northern Australia.

In northern Australia average farm cash income of beef cattle producing farms is estimated to have fallen from an average of US$80,000 a farm in 2012-13 to US$45,000 in 2013-14 - about 48% below the average for the 10 years ending 2012-13, in real terms.

Northern Australia is defined as northern Western Australia, the Northern Territory and Queensland.