THE gross value of beef and veal production in Australia fell 10 percent to $14 billion in the 2022-23 financial year.
The findings come from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) with the prediction that the downward trend is expected to continue through 2023-24 due to pasture growth conditions changing from favourable to average.
The result will be an increased turn off and increase in beef production which will offset some of the impact of price falls.
Research by Meat and Livestock Australia (MLA) found cattle prices continued to drop after peaking in November last year.
The downward trend was sparked by concerns over global economic conditions alongside an expectation of higher supply in Australia.
The result is the Heavy Steer Indicator dropping by 24 percent to A351c/kg live weight.
MLA found the shift in cattle prices across major beef trading nations generally, had been moving with local weather patterns and the broader economic environment.
Australian heavy steer prices have fallen 22 percent to US418c/kg carcass weight from a local peak in October last year.
The fall is also a reflection of the slight decline in the Australian dollar, which had kept pricing competitive in the global market and to some extent protected prices for global conditions.
Brazilian heavy steer prices have been falling in US dollar terms since April 2022, with the fall in price broadly matching the decline in Australian heavy steer prices.
This means Australian cattle are retaining a premium over Brazilian cattle in real terms, reflecting the higher demand for Australian beef and the increasing premiumisation of Australian beef on the international market.
ABARES forecasts the gross value is expected to trend upward in the 2027-28 financial year as larger herds lead to increased beef production and average saleyard prices are supported by higher worldwide beef prices.