The benchmark Eastern Young Cattle Indicator (EYCI) is expected to finish 2014-15 at least 22 per cent higher than the average for the previous financial year, according to the National Australia Bank (NAB) Agribusiness April Commodity in focus report.
Speaking ahead of Beef Australia 2015 in Rockhampton, Khan Horne, General Manager NAB Agribusiness, said beef prices are staying high despite continuing strong production levels over 2014-15.
“Overall, the fundamentals for the beef industry are very solid, supported by growing demand from our major export markets and the falling Australia dollar. Price wise it has been a good year for many beef producers,” Mr Horne said.
A key driver for the surge in the EYCI has been the US market, with the falling currency supporting prices in AUD terms.
“The 90CL export price stood at 635.2 AUc/kg on 26 March 2015, 32 per cent higher than the same time in 2014,” Mr Horne said.
“There was a sharp jump in price from June to September 2014 in US dollar (USD) terms. While USD prices have since fallen, the exchange rate has acted as a buffer on falls in AUD terms.
“Late 2014 and early 2015 brought a dip in the quantity exported, although this has since rebounded. The March 2015 export volume stood at 42,028 tonnes, not far shy of the recent peak of 47,238 tonnes in September 2014.
“Australian beef exports to the US last reached these levels in the early 2000s.”
Overall Q1 2015 eastern states slaughter was up 1.1% on the already elevated Q1 2014 slaughter rate. These elevated rates partly reflect strong processor demand for export, but also a lack of rainfall precluding herd rebuilding.
“NAB Agribusiness is a proud sponsor of Beef Australia, and I encourage producers in Rockhampton from May 4-8 to drop by our stand for a chat.
“We will be running a Social Media Command Centre, where you can also learn about the power of social media in keeping tabs on trends and conversations in the beef industry from our digital team.”
Agribusiness View provides the latest insights from NAB Agribusiness. Visit nab.com.au/agriview to sign up as well as to find the contact details for your nearest NAB Agribusiness Manager.
Important Note: Any advice in this editorial has been prepared without taking into account your objectives, financial situation and needs. Before acting on this advice, you should consider its appropriateness to you.
About NAB Agribusiness
National Australia Bank (NAB) Agribusiness is Australia’s leading Agribusiness Bank and has been supporting Australian farmers for more than 150 years. NAB employs more than 600 agribusiness banking specialists in 110 metropolitan and regional locations Australia-wide. With their local and industry knowledge, our Agribusiness team understand the unique financial and environmental needs of farmers and businesses beyond the farm gate – whether they provide inputs into agriculture or process, distribute or market primary produce. NAB also has a specialist Agribusiness Asia Desk to help Australian farmers make the most of the rapid growth in demand for high quality produce in Asia. We deliver a flexible range of agribusiness products and services by listening to and working with our customers, to tailor the best packages and advice for their businesses. For further information please visit www.nab.com.au/agribusiness.