At a time of year when Australian beef processors are usually working at 50% capacity, cows are being forced off of drought-killed pastures and slaughter rates in Australia have reached three consecutive weekly highs. Cattle prices in the country have reached a four-year low for farmers as abattoirs are seeing higher revenues on increased shipments to Asia. Australia’s Bureau of Agricultural & Resource Economics & Sciences (ABARES) forecasted that Australian beef exports would increase 7% in the 2013/14 marketing year which began in July to reach a record 1.085 million tons or just under half of the country’s entire production, however recent drought conditions will likely push shipments beyond this expectation. Shipments in the first half of the 2013/14 marketing year increased 18% from the previous year to reach 668,755 tons. Demand and retail prices for beef in China are both high and the 15% decline of the Australian dollar against the U.S. dollar in 2013 has caused even further interest in Australian beef.
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