The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) says its latest analysis of beef farm incomes shows an almost 100 percent increase in the past year.

Federal Agriculture Minister Barnaby Joyce released the Australian beef: Financial performance of beef cattle producing farms 2012–13 to 2014–15 earlier today.

The report says average farm cash incomes for beef producers rose in 2014-15 due to increased cattle turn-off in response to dry seasonal conditions and higher prices, resulting from strong international demand for beef and live cattle.

“Beef producers in northern Australia have seen the most significant increase in farm cash incomes – an average of $148,000 per farm in 2014-15, up from $74,700 in the previous year, representing a 98.1 per cent increase, or around 50 per cent above the average for the previous 10 years,” Minister Joyce said.

“While in southern Australia, farm cash income of beef cattle producers is estimated to have increased from an average of $38,100 a farm in 2013–14 to $64,000 a farm in 2014‒15.

“Increases in cattle sold for live export and higher cattle prices resulted in farm cash income in the northern live cattle export region increasing from an average of $143,000 a farm in 2013–14 to $277,000 a farm in 2014–15.

“And although drought conditions affect an estimated 30 per cent of Australian beef cattle producing farms, particularly in Queensland and New South Wales, higher cattle prices are estimated to have resulted in an increase in farm cash income for drought-affected farms.”

Minister Joyce said the recent live cattle export trade negotiations with China, as well as the free trade agreements with China, Japan and the Republic of Korea would further support the $8.5 billion industry and continue to promote Australia’s quality beef and beef producers to the world.

He said the Government would continue to work to improve market access and improve farmgate returns.

ABARES is a research bureau within the Department of Agriculture, providing professionally independent research, analysis and advice for government and private sector decision-makers on significant issues affecting Australia’s agriculture, fisheries and forestry industries.

Source: Federal Minister for Agriculture. The full report is available at: agriculture.gov.au/abares/publications.