Improved seasonal conditions throughout much of Australia during 2009-10 are expected to help producers rebuild cattle numbers to expand future beef production, according to a new report released by ABARE today.
Subscribe now for unlimited access to all our agricultural news
across the nation
or signup to continue reading
The report, Australian beef: Financial performance of beef cattle producing farms 2007-08 to 2009-10, was released by ABARE deputy executive director Paul Morris.
One of the consequences of herd rebuilding in 2009-10 is reduced sales of beef cattle.
As a result, farm cash incomes are expected to fall by 18 per cent to $66,000 per farm in northern Australia, and almost 50pc to $31,700/farm in southern Australia.
“The larger fall in average farm cash income in southern Australia reflects the impact of persistent dry conditions since the 2002-03 drought which has led to extensive destocking in this region,” Mr Morris said.
“This destocking is expected to limit the recovery in calving numbers in 2009-10.”
The analysis of ABARE’s survey data also showed that producers who sold cattle directly for slaughter earned the highest farm cash income per hectare.
The returns from sales to other markets - namely live exports, feedlots and other producers - varied between northern and southern Australia.
The analysis also found that while only a limited number of beef cattle producers used grain finishing prior to sale, on average these farms generated a much higher annual farm cash income per hectare than other producers.
In 2008-09, beef cattle producers also invested, on average, about $57,000 per farm on new capital.
Cattle producers have maintained a high level of capital investment over the past decade, with the largest share dedicated to purchasing land.
However, the proportion allocated to purchasing plant and machinery increased sharply in 2008-09, particularly in southern Australia.
