The Examiner reports:
Australia is reporting record cattle prices for 2016. According to the Rural Bank and Rural Finance’s December 2016 Australian Cattle and Beef Update, the Eastern Young Cattle Indicator averaged 27 per cent higher in 2016 compared to 2015, and 48.5 per cent higher than the five-year average
According to the report, “Cattle prices had been trending higher and hitting record levels in 2015 and early 2016 as supplies for processors and exporters tightened. With a change in seasonal conditions, restockers have increased demand, driving prices even higher to secure stock to rebuild herds. At the same time, growing global production has seen a lower price trend develop in international markets.”
“The continued tightening of cattle supplies in Australia has protected domestic markets from softening international prices and resulted in another year of record high prices.”
The average income of Australian beef farmers increased by 20 per cent in 2015, following on from an eight per cent increase in 2014, despite a drop in beef exports
Exported beef volume dropped 21 per cent from January to September compared to the same period in 2015 following a 43 per cent decline in exports to the United States.
The full Australian Cattle and Beef Update is available at www.ruralbank.com.au/cattle
Source: The Examiner
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