With improved seasonal conditions across key cattle producing regions tightening turnoff and increasing restocker demand, Australian saleyard cattle prices are expected to average 3pc higher in 2008-09 at 295¢/kg (carcase weight), according to ABARE.

Meat and Livestock Australia is reporting that ABARE's Australian commodities September edition states the reduced turnoff is expected to assist growth in the national herd by 0.4pc to 28.2 million head.

Assisting the forecast higher prices for 2008-09 will be a lower Australian dollar, with anticipated improvements in export prices to both the US (up 18pc) and Japan (up 3pc).

Increased competition from US beef in North Asia is expected to impact demand for Australian product, with shipments to Japan expected to be down 4pc in 2008/09, to 350,000 tonnes (shipped weight), while exports to Korea are forecast to drop 11pc to 130,000t.

The growth markets of Russia and South East Asia are forecast to partially offset the decline in volumes exported to Australia's three traditional major markets, with total Australian exports for the fiscal year forecast to be back 2pc at 910,000t.