High Dollar, Costs: Beef Producers Urged to Switch Breeds

AUSTRALIA - Beef producers are being urged to start breeding less expensive cattle because of the strength of Australian dollar and rising fuel prices.
calendar icon 13 November 2007
clock icon 1 minute read
Beef producers are urged to opt for less expensive cattle, to help reduce their costs.

The president of the Beef Cattle Breeders Association in South Australia, Jamie Withers, says the high value of the dollar is making it harder for exporters to compete.

He says fuel costs are also cutting profits.

Mr Withers says because beef producers cannot raise their prices so must reduce costs.

"If you're that little bit further away from the market it is going to be that little bit more difficult and, as times get hard, the buyers that are wanting long-term supplies, like ... Woolworths, they are going to be more selective with their customers," he said.

"It is a likely disadvantage to anyone who has any extra burdens."

Mr Withers supports beef producers changing to lower maintenance cattle.

Source: ABC News

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