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ABA Warning Over Herd Forecasts

18 August 2009

AUSTRALIA - ABA Chairman Brad Bellinger said today The MLA forecasts for the Australian cattle herd to reach 30 million by 2013 should be treated with caution by producers.

In 2005, the MLA forecast the herd to reach 30.4 million head by July 2009. The latest available ABARE figures put it at 27.3 million head.

Mr Bellinger continued, Such over optimistic forecasts were more in the interests of self promotion for MLA rather than reality. Floods in the Gulf are now revealing six figure losses. A forecast return of El Nino weather conditions and low cattle prices are making alternative enterprises more attractive are some of the factors not conducive to an increase in the cattle herd.

The 40 per cent increase in the cattle transaction levy from $3.50 to $5 was based on the increase in the cattle herd. Now that this hasn't occurred it has been forgotten and MLA is drumming up new reasons given for maintaining the levy.

Producers need to wake up to the positive spin put on the cattle industry by the MLA in the name of self promotion and vote down the $5 levy when the vote is taken in November.

TheCattleSite News Desk


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