Red-hot beef exports hit herd numbers

That was the key messages from a presentation given by Meat and Livestock Australia's market information and analyst manager Tim McRae at the SA Beef School at Mount Compass recently.

"The US is now our number one export market," he said.

"It's red hot at the moment.

"The biggest reason is that they don't have the beef themselves, due to the constant liquidation of the US herd in recent times."

The US cow herd has only had six years in the past three decades where it has been able to increase its cattle herd.

As a result, its annual calf drop is at a 60-year low, and has declined 16.7 per cent since 1995.

The record US import prices had attracted more Aussie beef while demand for cuts from the US had decreased and there was more emphasis on manufacturing and pasture-fed beef.

But Australia is facing a rapid decline in national herd numbers.

"We're going from a 30-year high, to next year having a 30-year low cattle herd," Mr McRae said.

"This is due to high slaughter levels; there's just not enough cattle coming into the system."

Much of the decline in numbers has occurred in the key cattle regions of northern NSW and Qld.

"We're at a real disconnect right now," he said.

"We have record exports - the volume has never been higher - but that's been driven by record slaughter numbers."

* Full report in Stock Journal, August 14, 2014 issue.