December 15, 2022

Beef output in Australia expected to ramp up in first half of 2023

Australia's Rural Bank said Australian beef production is expected to ramp up in the first half of 2023 as the country's herd continues to rebuild, growing additional supply for US, Japan, and South Korea markets, Bloomberg reported.

The Australia's Rural Bank's agriculture outlook said favourable seasonal conditions have improved Australian pastures, allowing producers to continue expanding cattle numbers following years of drought that ended in 2020.

The bank said beef output is likely to go up 5% in the first half of next year with higher slaughter rates, but it will remain below average. Lack of labour will limit pace of slaughter.

The bank also said demand is mixed across major export markets. As US shipments decline throughout the year, supporting global prices, there are increasing opportunities for Australia's beef producers to export to Japan and South Korea. Demand in the US is expected to rise through June as culling rates fall.

Meanwhile, as domestic supplies expand, Chinese demand for imported beef is expected to fall slightly, the bank said. As several Australian abattoirs remain closed, importers in Asia's largest economy are likely to prefer Brazilian supplies, according to the report.

-      Bloomberg