Australian beef cattle prices are expected to remain strong during the next 12 months, according to the Rabobank beef quarterly report. Rabobank said strong cattle prices were expected to continue as producers rebuild the national herd after three years of heavy culling due to dry conditions affecting many areas of the country. “The shortage of cattle and the promise of improved seasons have producers eager to start the restocking process, however, they are cautiously waiting for a strong indication that seasons will improve,” the bank said.
Report author Angus Gidley-Baird said the national beef cattle herd had fallen by about three million head from an estimated population of 29-30 million in 2013. Gidley-Baird said that meant Australia had difficulty supplying its key markets of the US, China and Japan. Beef exports to the US had fallen 54% in the past year, while the Chinese and Japanese markets had fallen 47%.
Meanwhile the U.S. imported beef market has been creeping up over the last few weeks. Volumes are much lower than a year ago though and higher domestic production is keeping a lid on potentially much higher price rises.