Positive outlook for Australian beef sector
The outlook for the beef industry in Australia is optimistic for 2011, supported by an excellent season in most cattle-producing regions as well as strong global supply and prices.
Meat and Livestock Australia’s (MLA’s) cattle projections for 2011 suggest that, following a significant improvement in seasonal conditions, the national sheep flock is expected to grow 1.5% in 2010-11 and reach 29.7 million head by 2015, 6% higher than in 2010.
Meanwhile, although demand for Australian beef exports is expected to be down during the second half of 2010, the domestic market is expected to offer a viable alternative, with positive growth seen and high consumer confidence. Total beef consumption is expected to increase by 3.4% to 760,000 tonnes in 2010.
There are ongoing concerns about the sustainability of the economic recovery in the US and Japan and problems associated with the high Australian dollar. However, according to MLA, beef stocks in the US and Japan are at very low levels, which should increase lead to an increase in exports as consumer demand increases. This should support global beef prices in 2011.
