Rising Production Dampens Outlook

CANBERRA - Mar 6/02 - STAT -- The outlook for Australia's livestock sector is not good on account of expectations production will continue rising across the 2002-03 marketing campaign.

Speaking at this year's outlook conference here, ABARE'S senior agriculture industry analyst, Trish Gleeson argued with current beef prices being the strongest in real terms for nearly twenty years, and prices for lambs and pigs at record levels, producers are expected to respond by increasing meat production.

"Over the medium term, beef and lamb prices are projected to ease further as Australian red meat production increases, while for pig meat, higher world production and heightened competition in world markets is expected to lead to lower pig meat prices in Australia," Gleeson said.

"Given trade restrictions in Australia's major export markets, including Japan and the United States, we may need to look beyond these markets in the near term, while continuing to push for further trade reforms in the next WTO round," Gleeson added.

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