Meat: Outlook to 2006-07

Higher Australian beef production and subdued demand from Japan are forecast to result in lower Australian beef prices in 2002-03. Over the medium term, beef cattle prices are projected to decline further in real terms as US beef production and exports rise. Despite continuing strong import demand from the United States, saleyard lamb prices are forecast to fall in real terms as a result of rising production. Higher world pig meat production and heightened competition on world markets is expected to lead to lower real pig meat prices in Australia and to a contraction in pig meat production in the medium term. Lower feed grain prices for poultry producers over the medium term are likely to improve profitability and result in continued growth in poultry production.