Based in Sydney, Australia, Tim Hornibrook is a businessman with nearly 15 years of experience in the investment industry. A career in agricultural funds management has given Tim Hornibrook insight into Australia’s farming sector, and he has suggested that despite record slaughter rates Australia’s cattle prices will continue to rise due to a longstanding drought in northern parts of the country.
A December 2015 article published by online farming journal Stock and Land echoed this sentiment, reporting that current cattle prices in the country have reached their highest numbers in 30 years. The article contends that a decline in Australian dollar value, strong demand for beef exports, and drought continue to affect the price of cattle. In addition, the high volume of slaughter and export for the past two years have decreased the overall cattle supply, driving up prices.
After the publication of the Stock and Land article, online Australian magazine Agweek reported heavy rains in the cattle-producing areas of the country, and the precipitation is expected to help local farmers replenish pastures and rebuild cattle populations. However, experts anticipate that even with the late rainfall it may take two to three years for livestock numbers to recover, with beef prices continuing to reflect the industry’s economic state.