But MLA reports that the accompanying sharp decline in the Australian dollar is expected to eventually lift meat and livestock prices significantly.

However, markets are likely to be softer for the next few weeks, or perhaps months.

MLA says meat importers are currently taking a hand-to-mouth approach to buying and some have reneged on - or sought to renegotiate - contracts, particularly to Russia.

This is due to the sharp fall in the Aussie dollar, which has made current stocks and product on the water much dearer than future purchases, as well as fears over consumer demand and problems in obtaining lines of credit for trading.

MLA says these issues contributed to reductions in over-the-hooks prices on export cattle and lambs this week and probably also to producers' willingness to sell (before further price falls), with yardings up substantially.

Consequently, the Japan ox price indicator and heavy export lamb price both fell 5pc and the export cow and medium weight steer prices 3pc.

The A$, however, assisted sheep prices, with a 6pc jump. All prices remain substantially higher than a year earlier.