| The Beef cattle industry in Australia has been rebuilding after the three-year drought drove the size of the national herd to at least a 20 year low. However Australia's harsh weather is hampering the recovery. The Australian Bureau of Meteorology on Thursday said Australia's east coast had an 80-percent chance of above average temperatures in the coming three months couple with a 35-percent chance of exceeding average rainfall.|
The East cost is Australia's largest cattle producing region and the nation is the world's No.4 beef exporter. The northeast coast accounts for more than a third of the annual red meat exports of around 1 million tonnes alone.
It is hoped wet weather across the country over the past few months has given farmers and graziers enough pasture and feed crops to maintain the recovery. If not the mass slaughtering we saw over the past three years will become necessary.
"A dry summer will push domestic prices down as it will remove quite quickly restocking demand," said Phin Ziebell, agribusiness economist at National Australia Bank.
The concern is also at a time when mining is shaky with the world commodity price bubble still deflated that alternative exports like beef are at risk. Markets such as China have been exclusively Australian for a number of years and would be vulnerable if demand could not be met.
The situation is in contrast to the US where earlier in the year the USDA says Cattle in U.S. Feedlots at 8 yr Feb High
benefiting from lower corn prices.
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