The future of the Australian beef industry is looking bright.
Key fundamentals for a strong Australian beef industry –consisting of strong international demand, constrained global supply, a depreciating dollar and trade agreements– are falling into place. An improvement in the weather and drought-breaking rains through many cattle-producing regions would provide that necessary relief for many producers and allow the herd rebuilding process to begin.
With a generally optimistic sentiment flowing through the industry, common topics of discussion are focused on domestic production, export markets, the live cattle trade and the future for cattle prices.
The Australian beef industry has long been exposed to the supply-and-demand fluctuations experienced by global drivers and local seasonal conditions. While depressed prices have been driven by short-term high domestic supply, the Australian industry is now in a position to capitalise on strong global demand, providing an opportunity to develop an industry with a premium, value-added product. This would ensure a more stable, long-term environment for the Australian beef industry.
“With strong fundamentals in place, this report looks at some of the opportunities and challenges for the Australian beef industry from a production, export and price perspective,” according to Rabobank Angus Gidley-Baird.
