Sunday, December 5, 2010

MLA REPORT REVEALS NORTHERN BEEF INDUSTRY IN CRISIS

The MLA Northern Beef Situation Analysis 2009, completed in June this year, paints an alarming picture of the commercial health of the beef industry in northern Australia, which constitutes just under half of the total Australian herd.

In 2009 the northern beef industry was in its worst state since the beef slump of the 1970s with average return on assets (ROA) of 0.3% to 0.2%, the report says. Average beef producers tend to be spending more than they have earned in 6 of the last 7 years, indicating the northern beef industry is in a very unprofitable and unsustainable state.

The report attirubes the situation to "external" factors including:

- the decline in beef prices since 1994;
- a doubling in debt levels per large stock unit (LSU); and
- below average rainfall in QLD for 7 of the last 10 years;

as well as "internal" factors including:

a rise in overheads per LSU by 54% over the decade;
a rise in direct costs per LSU by 150%; and- the very poor performance of the extensive breeder herd.

The full report can be found on the MLA websiteHERE.

1 comment:

  1. It really paints an alarming picture of the commercial health of the beef industry in northern Australia, which constitutes just under half of the total Australian herd. If you need writing help be sure to contact)

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