According to the Meat & Livestock Australia’s (MLA) 2014 industry projections, Australian cattle slaughter is projected to decrease by 9.1% and consequently beef exports will decrease by 7.3% this year because of drought in eastern Australia. The MLA also forecasts that Australia’s herd size will decrease by 2.7% to 27.5 million head by June 30th after hitting a peak herd size of 29 million head in June 2012. Increased mortality rates and reduced branding will result in a tight supply. Domestic utilization is projected to decrease by 10.6% and overall beef and veal production is to decrease by 8.2% to 2.17 million tons. These reduced branding rates continuing into 2014 will mostly have an effect in 2015 given the long lead time needed to bring cattle to finished weights. Improved global economic conditions especially in the EU, the U.S., and Japan, a lower Australian dollar, and tighter supplies could improve cattle prices for 2014; however because of the tighter supplies there is a question of whether producers will be able to see much advantage from the improved market. To read further about the MLA’s forecasts for the Australian beef industry:
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