Australia has seen record cattle prices in 2016, with the largest price increases reported in Tasmania, Victoria and Western Australia.
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The Eastern Young Cattle Indicator averaged 27 per cent higher in 2016 compared to 2015, and 48.5 per cent higher than the five-year average, according to the Rural Bank and Rural Finance’s December 2016 Australian Cattle and Beef Update.
Reasons for the improved prices included a favourable winter following the breakdown of El Nino in May, with a wet winter generating excessive feed growth.
The average income of Australian beef farmers increased by 20 per cent in 2015, following on from an eight per cent increase in 2014.
Farm Management Deposit (FMD) balances have grown by 13 per cent in both 2014/15 and 2015/16, with the national balance for beef and mixed farming FMDs standing at $1.99 billion at the end of June 2016.
Exported beef volume dropped 21 per cent from January to September compared to the same period in 2015 following a 43 per cent decline in exports to the United States.
It’s not all good news as trends suggest Australian beef exporters may be counting the costs of the increased US beef production in 2016/2017.
The full Australian Cattle and Beef Update is available at www.ruralbank.com.au/cattle
