Beef Cattle Farming in Australia Industry Market Research Report Now Updated by IBISWorld
Adverse weather conditions, volatile export demand and concerns regarding live animal exports have caused problems for the industry. For these reasons, industry research firm IBISWorld has updated its report on the Beef Cattle Farming industry in Australia.
Melbourne, Australia (PRWEB) July 13, 2013
The Beef Cattle Farming industry has steered clear of growth over the past five years, due to volatility in weather and broader economic conditions. Over the five years through 2013-14, beef cattle prices have steadily declined. At the same time, the lingering effects of drought conditions, which have increased the cost of producing cattle, have squeezed industry profit significantly. IBISWorld industry analyst Emily Witham states, "A return to favourable weather in late 2010 was the start of good fortunes for the industry, but profit remained under pressure as farmers focused on rebuilding herds." Over the five years through 2013-14, industry revenue is expected to decrease by an annualised 3.3% to reach $5.6 billion. Industry revenue is forecast to increase by 3.7% over 2013-14.
Cattle prices change in response to export market demand and the supply of and demand for cattle in the domestic market. Over the past five years, the Beef Cattle Farming industry has been strongly affected by volatile returns from beef exports. For instance, a ban on live cattle exports to Indonesia over 2010-11 caused export revenue to plummet by 11.1% for the year. Further impeding trade, the Indonesian Government subsequently announced its aim to develop a self-sustainable beef industry, slashing their import quota. Matters were made worse by the United States re-entering the export market, depressing demand for Australia's high-value beef. All this comes on the back of a severe drought period in Australia, which has incited farmers to rebuild herds despite rebounds in prices. Since the breaking of the drought in late 2010, conditions have started to improve for beef farmers as greater fodder volumes push cattle finishing weights higher. The number of beef cattle slaughtered is expected to increase in 2013-14 as farmers begin to reduce herd sizes after three years of rebuilding. According to Witham, "Over the next five years, the fortunes of the Beef Cattle Farming industry will likely depend on weather and export market conditions due to the stable nature of domestic demand."
Australia's Beef Cattle Farming industry is characterised by many small and medium-sized operators. The largest establishments in the industry are located in the northern regions of Australia, while establishments in southern Australian states are generally smaller. Over the past five years, the number of industry establishments and enterprises contracted. This is partly indicative of industry consolidation. IBISWorld expects market share to fluctuate partially in line with movements in commodity prices. The industry only has one significant player: the Australian Agricultural Company Limited. For more information, visit IBISWorld’s Beef Cattle Farming report in Australia industry page.
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IBISWorld industry Report Key Topics
Farms in this industry produce beef cattle. This industry excludes feedlot, mixed livestock farming and grain-sheep or grain-beef farming operations.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/7/prweb10922865.htm