ABARE commodity analysis manager John Hogan said herd and flock rebuilding will drive stronger cattle and sheep prices in 2008-09.

“Australian saleyard prices for cattle are forecast to rise in 2008-09, underpinned by a decline in the number of cattle turned off for slaughter as producers move to rebuild herds,” Mr Hogan told the conference.

“The extent of the price increase is expected to be moderated by weaker demand for Australian beef in Japan and the Republic of Korea as competition from the United States increases.

“Saleyard prices for lambs are also forecast to increase in 2008-09, despite higher production, reflecting an expected increase in export and domestic demand.

“Over the medium term, saleyard prices for cattle and lambs are projected to fall in real terms as production increases more rapidly than demand.”

“High grain prices will continue to have an impact on intensive livestock industries, as well as the grain fed beef industry,” Mr Hogan said.

Meat and Livestock Australia's regional manager in the Republic of South Korea, Glen Feist, emphasised the importance of exports.

“Sixty to seventy per cent of Australian beef and lamb is exported,” he said.

Mr Feist also outlined the importance of ensuring that the safe and healthy status of Australian beef is maintained, particularly in the Japanese market.

Dr Peter Scott, managing director of Scolexia Animal & Avian Health Consultancy, compared the competitiveness of Australia's livestock industries, and discussed the impact of feed grain prices, exchange rates, production efficiencies, welfare issues, imports, exports and disease status.

“Feed conversion efficiency has been improving in the Australian chicken industry.” He said.