The worst may be over for lot feeders

摘要

I REALISE that I am sometimes known as the eternal optimist but I do believe that the worst is over for the Australian lot feeding sector even though most of us are yet to return to profitability. Lower grain prices and finally an easing of feeder cattle prices are reducing the input costs of most operators and the lack of quality beef in Australia's major export markets is now being felt with growing demand helping to raise prices. Food prices are rising around the world following the blind push forgrain based fuel in the US. Beef prices will need to follow suit or it won't just be Australia reducing production but the US itself, the world's largest beef producer. This will certainly impact supplies at a time when world beef consumption, including in the US, is rising and this will undoubtedly be positive for beef prices.