Average Australian beef and lamb prices are forecast to increase 4.5pc and 8.6pc year-on-year, respectively, for the 2013-14 financial year, according to the recently released NAB Rural Commodities Wrap for July 2013.
Despite a forecast 3pc year-on-year increase in beef production in 2013-14, the NAB predicts that prices will improve based on signs of economic improvement in high-value markets including the United States, Japan and the United Kingdom.
The forecast also predicts that lamb prices will improve based on an anticipated 7.1pc year-on-year decline in production, underpinned by likely shorter supplies after much higher slaughter during 2012-13.
NAB is also forecasting the A$ to continue easing, and average 88USc by the end of 2013, 85USc by mid-2014, and 83USc by the end of 2014 – which at such a gentle decline would be very welcome by exporters.
Overall, while there are some headwinds for Australia’s largest export markets, as well as domestically, the forecast continued easing of the A$, and improved cattle and lamb prices are positive news for the industry.
Source: Meat & Livestock Australia