BEEF prices are set to remain strong and even increase over the next few years, according to industry experts.
The recent announcement of a new live cattle export deal to China by Federal Agriculture Minister Barnaby Joyce has further strengthened Australia’s beef export outlook but it is by no means the main driver of prices according to Victorian Farmers Federation Wangaratta branch president, Greg Mirabella.
“The announcement with China is good news but it’s not going to happen in a hurry,” Mr Mirabella said.
“World demand for beef is high but supply is low and this is likely to continue for some time.”
Mr Mirabella said the drought in the USA combined with that country’s declining herd numbers was a major reason for the supply shortage and the same contraction in numbers was already happening here in Australia.
“Processors are killing a lot more heifers than normal, because of the high prices, so restocking will not take place overnight,” he said.
“It’s great news for beef producers.”