Promising future for Australian beef

By Aaron McDonald

- Last updated on GMT

Rabobank said an end to drought in many cattle-producing regions would enable Australian producers to rebuild cattle herds
Rabobank said an end to drought in many cattle-producing regions would enable Australian producers to rebuild cattle herds

Related tags: Australian beef, International trade, Rabobank, Beef

Strong international demand, a depreciating dollar and trade agreements are all contributing to a bright future for the Australian beef industry.

For a long time Australian beef been affected by global supply-and-demand fluctuations, as well as seasonal conditions.

According to a report by Rabobank, ‘Australian Beef: On the Cusp of Great Things’​, depressed prices have been driven by short-term domestic supply.

Additionally, an improvement in the weather and rains, putting an end to drought throughout several cattle-producing regions, would offer many producers the break they need to allow the herd rebuilding process to commence.

Opportunities and challenges

Angus Gidley-Baird, senior analyst for animal proteins at Rabobank, said: “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.”

The report claimed the industry was now in the position where it was able to capitalise on global demand. This will give it the opportunity to develop a premium, value-added product, ensuring a long-term constant environment for the Australian beef business, it said.

“The outlook for the Australian beef industry is extremely bright, notwithstanding ongoing climatic challenges in some regions,”​ stated the paper.

“Global fundamentals in the red meat sector indicate constrained supply from major exporting countries in the midst of strengthening demand. Australian beef producers are expected to benefit from these positive global fundamentals, while also gaining additional competitive advantages from a strong US dollar, recently achieved trade agreements and an influx of capital opportunities.”

Related topics: Meat

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