age:beef demand, prices to surge

Beef demand, prices to surge By Philip Hopkins
February 24, 2004

"The mad cow disaster in the US is a boon for Australian beef exports to Japan and Korea.

Australia's beef industry has a bright future as higher demand and higher prices offset the rising Australia dollar, according to the latest industry outlook.

Price rises will be driven by further recovery in Japanese beef demand, the end of the drought, the discovery of mad cow disease (BSE) in the US and rising domestic beef demand, says Meat & Livestock Australia.

With Japan and Korea halting US beef exports since the discovery of BSE, Mr Weeks said, prices there would surge, lifting demand for Australian beef. "This is expected to raise Australian cattle and beef prices, offsetting the impact of the higher $A," he said.

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After the market settled from the US mad-cow price gyrations, Australian beef still had a good outlook for two or three years, he said. "A peak in the US beef price cycle, further recovery in Japanese beef demand and lower Pacific Basin supplies are the keys to this favourable price outlook."

Full Report at http://www.theage.com.au/articles/2004/02/23/1077497511966.html

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