BEEF slaughter in Australia is predicted to drop further this year according to this morning’s annual forecast from Meat and Livestock Australia.
Slaughter was down three per cent in 2009, which helped decimate the abattoir industry and exports this year are expected to drop another 4.5pc.
Also expected to hurt the meat processing industry is a four per cent increase in live cattle exports this year, despite exporters facing an Aussie dollar averaging US90 cents.
MLA economist Tim McRae said there was “cautious optimism” in the cattle industry for 2010.
The Northern Australian cattle herd is expected to bounce back this year and continue to grow as Australia’s largest cattle region.
Last year, the Northern herd was down 300,000 head.
This year the Australian cattle herd is expected to rise from 27 million to 27.1m, and to 28 million post-2012.
“The herd is continuing to move north,” Mr McRae said at the forecast in Sydney this morning.
Cattle prices were expected to be “subdued”.
While supply side factors and tentative economic recovery could lead to some improvement in beef and cattle prices in the US, Japanese demand is expected to remain sluggish and Australian beef will come under increased pressure in Korea from US beef.
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