Cattle exodus could spell trouble for Western Australian cattle industry

Cattle producers are concerned that the number of cattle leaving Western Australia could create problems for the industry in the long term. Livestock have been leaving the state in record numbers due to drought, a growing export market with Turkey and strong demand from the eastern states. While the exact number of cattle left in the state is not known, high cattle prices have left some lot feeders concerned that it may be difficult to rebuilt stocks in the future. "It's hard to rebuild a cattle heard," said Hyden breeder and lot feeder Vern Mouritz. "There's a lot panic there, particularly in the processing sector about where they're going to get the cattle from." Prices for weaner cattle has been consistently above $2 per kilo, up 30 per cent on this time last year. Chief economist for Meat and Livestock Australia, Tim McRae said the high prices mean lot feeders in particular could find it difficult to find cattle in future years, especially if the drought continues. "The breeding rates and numbers of calves on the ground do get affected by the dry conditions. "It's the one sector we looked at which looks like having a tougher year in 2011," he said. "And from a WA perspective, when you have increase pressure from live exports, that only extenuates any tight supplies you may face." Mr McRae said low demand from export markets will also make production difficult for lot feeders. "We're not seeing any signals for any significant improvements in grain fed beef prices in our export markets, he said.