- Drastic drought in southeastern Australia.
- Significant drop in cattle and sheep prices.
- Economic crisis for Australian ranchers.
Dramatic price drop and drought devastate the industry.
Cattle and sheep ranchers in southeastern Australia are facing a serious crisis due to an extreme drought. This year in many regions, such as Delegate, only half of the typical amount of rain has fallen, annual rainfall has halved forcing ranchers to sell up to a third of their cattle and sheep. Many Australian farmers are facing a similar fate, having to cope with limited access to water, which is driving up the cost of livestock and feed.
The situation has led to the biggest drop in cattle and sheep prices in decades in Australia, a country with a red meat and livestock industry worth 75 billion Australian dollars. Cattle prices have fallen from $3.50-7 per kilogram in 2021 to just $1.40-2.20 in October, and sheep prices from $6.50-9.75 per kilogram to $1-4.50, according to Meat & Livestock Australia (MLA).
Challenges and unfavorable outlook for the future
Establishments have responded by increasing the slaughtering of animals, sending larger quantities of meat to overseas markets, including the US. However, the decline in the value of cattle and sheep in Australia is more than half, meaning significant losses for producers.
Faced with rising production costs and low cattle prices, Australian farmers are forced to sell animals at much lower prices, and some are even culling sheep they cannot sell. The situation is contributing to financial pressure on farmers, who are already struggling with higher interest rates and the cost of necessities.
The crisis in the Australian meat industry sheds light on the broader issue of the changing climate and its impact on agriculture. With extreme weather conditions becoming more frequent, farmers are wondering how to survive and continue their operations into the future.
