AUSTRALIA – There is no reason why the current boom in Australian cattle prices should falter, according to market analysts at Meat and Livestock Australia.
The latest forecast from the levy board could see “no single factor” that could counter a continuation of high prices or further increases following an “extraordinary” six months for the market.
Ben Thomas, an analyst with MLA, said Eastern States cattle prices are five per cent higher this year on last year’s records, a feat was exports led.
He noted prices are currently 20 per cent above the five year average.
“The recent demand strength for beef and veal has been all export led,” said Mr Thomas. “There’s not enough cattle in the country to keep up the supply momentum we’ve seen so far.”
The US, Japan and South Korea have all increased shipments from Australia, he added.
Medium cows averaged 47 per cent higher in the first six months of the year than for the same period last year at 375 cents per kilo carcase weight.
“This is with herd rebuilding yet to be a significant factor, which would confirm our tight supply outlook,” Mr Thomas added.
He said an “average at best” weather outlook was informing projections, although new upward pressure would come from better weather and a below average season couldn’t increase cattle available for processing.
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