Industry Analysis & Industry Trends
The Beef Cattle Farming industry has come up against some tough conditions over the past five years. Industry revenue is expected to fall at a compound annual rate of 0.8% over the five years through 2014-15, to reach $5.7 billion. Varying weather patterns, volatile input prices and issues surrounding the welfare of live animal exports have contributed to this decline. However, the Beef Cattle Farming industry is expected to grow by 1.8% in 2014-15, due to improving prices and demand conditions.
Beef cattle farmers have suffered varying weather conditions over the past five years, which has wreaked havoc on profit margins. Arid conditions in early 2009-10, particularly in northern Australia, severely reduced farm output... purchase to read more
Industry Report - Industry Investment Chapter
The industry's low wage costs indicate a moderately capital-intensive industry. For every dollar spent on wages, an estimated $0.23 is spent on capital. However, owner-operators carry out the vast majority of labour tasks required by the industry. Since many farmers do not pay themselves a wage, the industry's wage expenses under-represent the actual income earned per employee. When the cost of imputed labour is accounted for, it is clear the industry relies heavily on labour. Thus, the capital intensity of the industry is expected to be low.
Cattle farmers rely on machinery to maintain pastures that cattle graze in, equipment for branding, electric cattle tagging and vehicles to travel around large properties... purchase to read more