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Australian Cattle Liquidation Cannot Continue

31 March 2015

AUSTRALIA – Australian cattle liquidation cannot continue and beef supplies will be tight without short term expansion, say agribusiness analysts at Rabobank.

Tight beef supplies in the first quarter of the year remain despite Australian exports being high due to ongoing drought conditions, explained animal protein analyst Angus Gidley-Baird.

Drought induced slaughtering “offset” the tight supplies last year and has continued to do so this year.

In its quarterly report, Rabobank said: “Without any global beef expansion forecast in the short term, global supplies are expected to remain tight.

“U.S. prices experienced a high degree of volatility in the early part of 2015 as a result of many factors.

“A slowing economy and lower pork and poultry prices are leading to a weak demand for beef and Chinese retail beef prices have been stable entering 2015 rather than following their normal upward trend.”

TheCattleSite News Desk

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