Global Economy
China is importing more dairy cows to try and beef up its transition to larger scale farms, as the industry attempts to boost production and quality following a deadly scandal.
DROUGHT in the US is set to be great news for Australian beefexports and local cattle prices by next year, despite uncertain economic times hindering global demand in the near future. Despite short term obstacles like the high Australian dollar, a bulge in US drought-induced herd slaughter rates and global economic insecurity, beef’s longer-term market prospects were literally “bullish”, said Rabobank animal protein market specialist, Wendy Voss. The bank’s latest Beef Quarterly report, co-authored by Ms Voss, has forecast a notable upturn in demand for the second half of 2012. Cattle prices within Australia are tipped to hit record highs later next year as overseas markets shift from a summer supply bulge - primarily caused by the US where herds are being culled due to severe drought - to materially lower supplies.
Global consumption seen rising 3% in 2017, USDA data show.
Food prices are falling amid an outlook for bigger grain crops, rising milk output as well as a recovery in U.S. pork production.
With prices slashed to below their cost of production, UK dairy producers fear for their future.
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