The past year has seen a spectacular rise in cattle prices, according to Meat and Livestock Australia.
The increase has been recorded across all classes of cattle, with both store and prime cattle averaging 40 to 50 per cent higher year-on-year throughout 2015.
A recent report published by MLA found a range of factors came to the fore to support cattle prices in 2015.
EYCI Index 2015
Black - 2015 Green - 2014 Grey - 2013
The Australian dollar declined 17 per cent year-on-year, averaging 74.8US¢ over the first 11 months — well below the mid-2011 peak of 110US¢, and even the 2014 average of 89.9US¢.
Export demand from key markets also remained strong, especially in the United States, underpinned by tight beef supplies — although in recent months this has somewhat abated.
Tight US supplies saw Australian exports to the market fully utilise the import quota for the first time since the US-Australia Free Trade Agreement came into being.
‘‘The same fundamentals, coupled with the strong greenback, also saw reduced US competition in Australia’s second and third largest beef export markets: Japan and Korea,’’ according to the MLA.