Australia looks to rebuild fast its cattle herd
After three years of severe drought, Australia has seen recently rain falling over the pastures and that increased the optimism for cattle producers. Re-building the herds it is a priority for the Australian cattle industry as demand for meat is expected to increase this year due to ongoing ASF crisis in Asia.
Nevertheless, that means a decline in beef production for this year. "Production in Australia is forecast to decline by 16% to 2 million tonnes. This tighter supply is supporting prices despite concerns a few weeks ago that a recent trade dispute between Australia and China could damped them. The trade dispute began after Australia demanded an investigation into the origins of COVID-19, and China retaliated with increased tariffs on some agricultural products as well as banning beef from four processing plants," commented Rebecca Wright, red meat analyst for AHDB.
Last year, Australia has become the world's most valuable beef exporter. The total value of beef exported in 2019 generated $7.5 billion, of which $1.85 billion came from China.
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