December 6, 2004

Australian Cattle Herd Rebuilds After Drought Cull

Australia's beef cattle herd expanded more than expected last fiscal year, after dipping in the previous year in the face of a savage drought, marketing concern Meat & Livestock Australia Ltd. said Friday.

MLA was commenting on official data issued Wednesday that showed the national herd grew 2.1% to 24.11 million beasts last fiscal year, up from 23.62 million beasts previously, but both down from 24.74 million in the fiscal year ended June 30, 2002.

MLA had forecast a 1% expansion in herd numbers last fiscal year, as the drought lingered in many cattle districts.

Producers sold large numbers of beasts for slaughter in fiscal 2002-03 as pastures withered during the severe drought.

But then cattle producers responded in fiscal 2003-04 to good returns and prospects for beef by curbing the number of beasts they sold for slaughter while lifting herd productivity, it said.

Australia is a major global supplier of beef, exporting 860,000 metric tons of bone-free beef last fiscal year, chiefly to Japan and the U.S.

The number of cows at June 30 rose to 12.46 million from 12.25 million a year earlier, again, both down from 12.65 million at June 2002.

Of these cows, MLA said 74.2% had a calf last fiscal year, up from 68.3% in fiscal 2002-03, the drought year, it said.

Last year's calving rate was also higher than the annual average 71.6% over the previous 10 years, a strong result given ongoing dry conditions in many districts, it said.