Above average rainfall is predicted for cattle regions in the next three months along with pasture growth surge.
This will strengthen the national herd rebuild heading into 2022 according to Meat & Livestock Australia’s latest Australian Cattle Industry Projections.
MLA’s Stephen Bignell said good seasonal conditions across the eastern states underpinned demand and confidence in the industry.
“The cattle market continues at historic highs, with restocker and feeder demand fuelling record prices at the saleyard, which is flowing along the supply chain,” Mr Bignell said.
“The extent of rain post-drought has resulted in slaughter being revised down to 6 million head for 2021, the lowest level in 36 years.
“While carcase weights are expected to reach record levels, they have been revised slightly down to 308kg, bringing overall production estimates to 1,848 tonnes carcase weight.
The improvement of seasonal conditions in autumn last year and the calves born from this time will hit the market next year and this will increase the supply of cattle available, Mr Bignell said.
The rebuild is expected to continue into 2022, as the BOM prediction of a La Nina will ensure that ground water supplies are available.
Australia was a leading exporter of beef globally, with Korea remaining a strong and reliable market, and Japan continuing to purchase the most Australian beef.
“Australia has exported 660,568 tonnes of beef for the year-to-date, with 17% lower volumes for the year-to-September. Lower export volumes have been the result of both supply and demand factors. Most key export markets have fallen compared to 2020 volumes except for South Korea, which has held steady at a 2% increase this year,” Mr Bignell said.
“Strong consumer purchasing power and sophisticated retail, foodservice and food manufacturing sectors, combined with a positive image of Australia as a trusted source for tasty and high quality will continue to underpin long-term growth for Australian beef exports to Japan.”