Australia live cattle exports seen essential to economy

A report commissioned by research bodies LiveCorp and Meat and Livestock Australia (MLA) shows the country’s live cattle export trade contributes A$1.4bn ($910mn) to the national economy.

The economic contribution and benefits of the northern live export cattle industry report said it provides 74pc of the A$1bn farm gate value of the live cattle export trade. The Katherine and Barkly regions in the Northern Territory and the Kimberley region in Western Australia together contribute more than 50pc of the value of live cattle exports from north Australia.

The live cattle export trade nationally employs more than 6,573 people full-time directly and indirectly, with north Australia accounting for 82pc of all direct employment, the report said.

North Australia each year supplies more than 800,000 head of cattle to live exports, although that has been affected in recent years. Covid-19 lockdowns and the [foot and mouth disease)(https://direct.argusmedia.com/newsandanalysis/article/2373677) outbreak in Indonesia have hampered the industry.

If Australia’s live cattle export trade were to stop immediately, the beef and cattle industry would lose A$8.1bn over the next 20 years, the report said, as well as seeing the average price of cattle across the country drop by 2-4pc. A 4pc fall would see the price drop 20A¢/kg, based on the current Argus Australian heavy feeder steer price of 498A¢/kg on 29 September.

Australian live cattle export data for August continued to reflect this year’s weakness because of international trade conditions and higher domestic prices. Total exports from Australia during January-August dropped by 36pc to 369,297 head in 2022 from 579,594 in 2021. A lack of exports are affecting short-term trade, although good seasonal conditions across Australian for the past two years has led to herd rebuilding, making more cattle available when dry conditions return.

Tags: Australia, live cattle