USMEF International Buyers Conference Product Showcase Registration Kit USMEF...

USMEF International Buyers Conference Product Showcase Registration Kit

USMEF South American Expo

Drought Impact On Productivity To Last Five Years

Australia’s disastrous, 11-month long drought could still be affecting its livestock industry five years from now, even if Fall rains come soon, according to Meat and Livestock Australia (MLA).

Beef, lamb and mutton production is expected to drop 4-14 percent this year alone and a return to normal rain levels would not restore productivity since much of the Australian herd has been sold off because of the drought.

MLA forecasts that Australia’s cattle herd will be 2.5 million head (7 percent) lower due to the drought, while sheep numbers will fall by 8 million (8 percent). Beef production will be 18 percent and lamb production 12 percent lower, as the industry rebuilds its herds assuming the drought breaks. Beef exports are expected to be 5 percent lower at 875,000 mt, although demand is expected to increase in Japan, South Korea and other Asian markets. If the drought ends this year, beef exports will recover in 2005.

Widespread drought across much of the Australian continent during 2002 brought to an end a strong herd rebuilding phase in the livestock industry’s cycle. For some parts of Australia, 2001 was the second year of drought; below average rainfall was recorded in many grazing areas in 2001.