Industry Analysis & Industry Trends
The Beef Cattle Farming industry has steered clear of growth over the past five years, due to volatility in weather and broader economic conditions. Over the past five years, beef cattle prices have steadily declined. At the same time, the lingering effects of drought conditions, which have increased the cost of producing cattle, have squeezed industry profit significantly. A return to favourable weather in late 2010 was the start of good fortunes for the industry, but profit remained under pressure as farmers focused on rebuilding herds. Over the five years through 2013-14, industry revenue is expected to decrease by an annualised 3.3% to reach $5.6 billion. Industry revenue is forecast to increase by 3.7% over 2013-14... purchase to read more
Industry Report - Industry Investment Chapter
Cattle stations require less capital investment as cattle typically graze in large paddocks. This reduces the need for farmers to invest in animal shelter and housing. Still, the Beef Cattle Farming industry has experienced some technological advances, which reduced the need for labour but slightly increased capital investment. For instance, the introduction of new labour-saving machinery has been the catalyst for structural change within the industry. Similarly, the trend towards replacing some on-farm services with off-farm services has been significant. The low level of capital intensity is reflected in $11.91 being spent on labour for every dollar invested in capital.
Land requirements vary widely between northern and southern farms... purchase to read more