Processor predicts cattle prices will rise as herd numbers drop to a 20 year lowLydia Burton, Tuesday July 15, 2014 - 16:09 EST
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 2014
More breaking news
Prolonged heatwave conditions are helping elevate the bushfire threat in parts of New South Wales this week, after a slow start to the season.
A four-day heatwave that begins on Wednesday will bring the same kind of conditions that saw more than 200 Queenslanders treated for heat stroke and dehydration last week.
A Queensland MP is calling on the major banks to develop offsetting options for farm management deposits to help landholders save in the good times.