November 28, 2003
Rising Australia Dollar Will Strain Cattle Market & Impact Prices
Meat and Livestock Australia (MLA) says the rising Australian dollar will strain the cattle market over the coming months and will impact on prices.
MLA chief market analyst Peter Weeks says while there has been a substantial rise in the dollar in the last year, the impact on beef markets has so far been cushioned.
But he says with more cattle coming onto the market due to continuing drought, the present situation is likely to change.
"All that impact hasn't come back just yet - we've been quite fortunate that we've been able to pass a lot of that impact onto our customers in US and Japan at this stage, because the supply demand balance is fairly tight," Mr Weeks said.
"But it's going to eventually hurt cattle producers if it stays high, particularly if it continues to rise."