Fairfax Media Network

Weather News

Processor predicts cattle prices will rise as herd numbers drop to a 20 year low

Lydia Burton, Tuesday July 15, 2014 - 16:09 EST
ABC image
One processor expects the supply of cattle to tighten to unprecedented levels forcing cattle prices up. - ABC

Industry projections forecast the supply of beef to tighten and prices for producers to increase.

Meat and Livestock Australia's, Chief Economist, Tim McRae, says the to fall to 26.1 million head by June 2015, which is the lowest in almost two decades.

As a result, one processor expects the supply of cattle to tighten to 'unprecedented levels'.

Executive Director for livestock at Teys Australia, Geoff Teys says "it is going to be very difficult" for processors "but it's going to be great for producers."

However with in some parts of the state Mr Teys says "for the people that have the cattle, [prices] are going to be unprecedented."



He says "we see the supply of cattle this year [being] very tight but the year after even tighter with the low calving percentages we are seeing around the bush this year."

"Supply is going to be as tight as we have seen it, we believe, and yet our markets are unprecedentedly high.

"So it is all looking fantastic for producers that have got cattle left."

Mr Teys says "we can't predict the weather but we can see a huge turn around in the price for livestock in the next few years."


- ABC

© ABC 2014

More breaking news

Sydney Morning Herald
ABC News
National Nine News
News Limited

Display Your Local Weather

Weather News

Myer Hobart store beats flood and fire, but market conditions may be toughest foe

13:04 EST

It has risen again from the ashes and has emerged from a devastating flood — but the challenge for the latest incarnation of Myer's Hobart store is simply to get people to shop there.

Wet weekend for parched Perth

12:02 EST

Perth may see its best rain since January this weekend as a burst of showers, blustery winds and storms affect southwestern parts of WA.

Potential rain and storms for east coast next week

14:23 EST

Heavy rain and thunderstorms may affect parts of Australia's east coast next week.