Both domestic and international factors will have positive and negative influences on Australian cattle prices over the coming 12 – 24 months. This month we will touch on the Australian domestic cattle supply situation.
The Australian cattle herd is predicted to drop to 26.2 million head in 2016, its lowest level in 24 years. A combination of high cattle prices and extended drought conditions has led to an unprecedented selloff of adult and female cattle over the past three years which has resulted in the herd numbers dropping 12% since 2013.
The differential between livestock pricing and supply has not been as great since the EYCI first began recording in 1996 and highlights entry into a phase of extensive herd rebuilding, lower slaughter of female cattle and increased competition and pricing for a limited pool of slaughter cattle.
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