Record beef exports not helping cattle producers

Australia is headed for a record year for beef exports, with one million tonnes heading overseas in 2013.

That's 4 per cent more than last year.

Booming demand in emerging markets like China, the Middle East and South East Asia has combined with the northern Australian drought driving huge cattle sales.

Chief economist with Meat and Livestock Australia, Tim McRae, says northern beef cattle incomes fell 10 per cent (in 2012-13).

"Effectively the turnoff was higher, but the prices were much lower unfortunately, particularly when a lot of those cattle from February to June had come to the market.

"In May alone, we saw the largest cattle slaughter for 34 years.

"Prices being received for those cattle were well down on the year before and I think we're looking for 10-12 year lows on the prices received then."

MLA says the Eastern Young Cattle Indicator price is higher than that low point of 270c/kg in May. Now it's around 330c/kg.

"There's going to be quite a lot of pressure on the young cattle price, particularly in southern Australia, for the rest of the year," Mr McRae said.

"Winter has been favourable so far. The three-month outlook for rain in (south-eastern Australia) is quite encouraging.

"So I think we could see tight supply of cattle in the south, once spring starts.

"But unfortunately in the north, the supply of cattle is going to continue running until there's some decent rain when the wet season comes."

Live cattle exports for January to May this year are 16 per cent higher than the same period last year. New markets are emerging in Israel, Malaysia and the Philippines.

Source: ABC Rural News, 30 July 2013