Demand set to outstrip supply in Australian cattle industry
The latest report from Meat and Livestock Australia has outlined how the beef industry will be in a state of flux for the foreseeable future.
Over 17 million adult cattle were slaughtered over the last 24 months, a boon for the industry. However, drought conditions have meant that matching those figures in the future will be increasingly difficult. The next two years are poised to be a testing time.
Demand outstripping supply
“The market’s willingness to compete for limited product will really be tested as domestic demand becomes even more stretched, with strong competition between international and domestic consumers playing off against tighter supplies,” explained Meat and Livestock Australia’s Manager of Market Information Ben Thomas.
Beef exports could drop by up to 19 per cent this year due to the difficulty farmers are having in meeting demand.
Prolonged dry conditions have shrouded any projections for the industry with doubt, as Meat and Livestock Australia were quick to point out.
“One of the key assumptions forming the basis of the 2015 cattle industry projections is that Australia will phase out of drought over the coming 12 months. With this as a key assumption, and given the heavy influence seasonal conditions play on the Australian beef supply situation, the cattle industry projections will be updated on a quarterly basis,” concluded Mr. Thomas.
With millions of cattle needed to satisfy demand both at home and abroad, farmers face the difficult task of cultivating the crops needed to feed their livestock – an issue that’s only compounded by dry and hot conditions.
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