SYDNEY, Australia (Reuters) — Australia has raised its forecast for beef exports by five percent as farmers send more cattle to slaughter to capitalize on strong Asian demand ahead of a La Nina weather event expected to provide near perfect seasonal conditions.
Beef exports from the world’s fourth largest seller will total 1.145 million tonnes this season, the Australian Bureau of Agriculture, Resource Economics and Rural Sciences (ABARES) said last month, up from its previous estimate in September of 1.09 million tonnes.
Much of the increased exports will flow to Japan and China,ABARES said, two countries where Australia enjoys favourable access following the completion of trade agreements.
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The increased export forecast comes as ABARES lifted its forecast for beef production to 2.32 million tonnes, up nearly four percent from the September estimate of 2.244 million tonnes.
The increased production is a boost to Australian exporters, such as Cargill. They had been forced to idle processing plants over the last two years as farmers sought to rebuild herds after the end of the strongest El Nino in nearly 20 years in 2014, which drove slaughter to a record high.
The expected arrival of a La Nina will likely extend the boom, bringing wet conditions across Australia’s largest cattle-producing region, stimulating pasture growth to better fatten livestock.
Although a boom to cattle farmers, ABARES said the wet weather will crimp Australia’s sugar production.
