PASTORALISTS remain jittery about their future viability despite positive news from the industry body Meat and Livestock Australia, which forecast growth in beef and veal production to a record 2.2 million tonnes this calendar year.
The growth, due in the main to strong seasonal conditions, comes against a backdrop of negative sentiment in the sector which was hit hard by the federal government’s one-month suspension of live cattle trade to Indonesia due to media coverage of slaughter techniques.
Indonesia has since stated it is looking to become self-sufficient in beef production. Livestock players are concerned that other markets, such as sheep exports to the Middle East, could also be hit by stiffer rules around slaughter Australia has demanded of its producers.
Agriculture Minister Joe Ludwig headed to the Middle East this week to attempt to explain the government’s new live export policies to customer countries.
Another issue flagged at a state level was rising costs for pastoral leases charged by the Western Australian government.
“Not only has the industry had the temporary closure of its most important market in the last 12 months, it has also had to deal with dramatic increases in input costs, labour shortages, bushfires, droughts and then floods in the Gascoyne region and a host of other problems,” PGA president Rob Gillam said in a statement.
But those gripes may not be heard, with the MLA signalling that prices are expected to remain high, thanks to growing global demand and the fact that Australia is among only a handful of major beef-producing countries likely to increase production this year.
“Total beef exports are predicted to increase, driven by expansion into Russia, the Middle East and the most southern Asian markets,” MLA economist Tim McRae said in a statement.
The boost in production makes up for the expected decline in live cattle exports this year, which has been driven predominantly by Indonesia’s decision to cut import permits from more than 520,000 to only 283,000 head.
The move, meant to promote Indonesia’s aim of self-sufficiency, is likely to drag down Australia’s total live exports by 16 per cent in 2012 to 570,000 head.
The MLA report also gives an overview of how 2011 panned out, noting that Indonesia was by no means the only volatile live cattle market.
Exports to the Middle East and Africa, including Turkey – the second biggest importer of live cattle behind Indonesia – came in below expectations, about 40 per cent below the previous year.
Exports to China, the third biggest market, went down by 25 per cent, although that mainly comprised dairy animals.
