Brisbane-based Australian Agricultural Company (AACo) said higher beef prices and a weaker Australian dollar had improved forecasts for the sector with supplies from competitors falling.

AACo's chief executive officer, Stephen Toms, said export returns had benefited from the steep decline in the US exchange rate from almost parity in July to the low US80 cents now.

"The decline will boost Australian dollar receipts, particularly on sales to the US over the next 12 months," he said.

"Upward pressure on beef prices is expected to be sustained by the continued shortfall in supply globally with breeding herds in China, Russia and the US

either in decline or flat and evidence that the growth in Brazilian beef exports has peaked.

"Cost pressures experienced in the first half of the year have eased on a number of levels. Interest rates have peaked in recent weeks with further easing anticipated.

"Oil prices have also declined overall which may be reflected in lower diesel prices and a reduction in station operating costs including transport, however there is little certainty as to how long this may last," Mr Toms said.

Buoyed with beef confidence, AAco has bought the 4JS Waygu stud herd for just over $1 million. The 850-head herd, now based in North Queensland, will be re-located to AACo's southern Queensland property, Wylarah, near Surat, where the primary focus is on Wagyu, a beef breed that originated in Japan.

AACo now has a 30 per cent market share of all Australian Wagyu sold. Its major Wagyu brands of Master Kobe, Kobe Cuisine, Darling Downs Wagyu and the joint marketing program in the US under the Greg Norman Signature Wagyu label would benefit from the 4JS purchase, Mr Toms said.

"The majority of Wagyu produced in Australia is for export and this acquisition will further strengthen AACo's presence in the higher quality markets of Hong Kong, Korea, Indonesia, the US, the Middle East and evolving opportunities in Europe.

"The 4JS herd consists of a mix of pureblood and full blood Wagyu cows and calves, replacement heifers, steers and full blood bulls. The 4JS genetics evolved from a broad base and fit well with current strategic breeding programs within AAco and will enhance and complement the already established and well known genetics of the Westholme herd that was acquired in 2006."

AACo is the largest beef cattle company in Australia with 565,000 beef cattle run on 24 stations covering seven million hectares and in two feedlots.