Australia produced more than 730,000 tonnes of beef in the March quarter, up on both the previous quarter and last year, reflecting favourable seasonal conditions and steady demand.
For northern Victorian graziers, improved feed availability and continued grainfed turn‑off are also supporting heavier carcase weights, which lifted to an average 317kg.
While Queensland drove the largest gains, Victoria recorded a modest two per cent rise in slaughter to just over 550,000 head, signalling consistent processing activity across the state, including northern regions.
Producers in mixed farming areas are benefiting from stability in beef markets, even as some regions further north contend with drier conditions pushing stock onto the market.
In contrast, the sheep sector has eased considerably, with sharp falls in slaughter and production following heavy turn‑off last year.
Overall, strong cattle prices and a record $6 billion in transaction value underline continued confidence in the industry, with northern Victoria well-placed to capitalise on favourable conditions through 2026.
Meanwhile, Australia’s beef industry is set to remain on a firm footing through 2026 despite record production levels, supported by strong global demand and resilient export markets, Rabobank says in its newly-released Australian Beef Seasonal Outlook 2026.
The annual report, by the agribusiness banking specialist’s RaboResearch division, says while record supply levels – with high cattle inventories and peak slaughter volumes –present risks, particularly if seasonal conditions deteriorate, continued demand from international markets, led by the United States, is providing an important support for prices.
Report author, RaboResearch senior animal proteins analyst Angus Gidley-Baird said successive years of favourable seasonal conditions have allowed the Australian cattle industry to rebuild inventory levels to what RaboResearch believes to be the next cyclical peak.
“This will generate record cattle slaughter and production volumes in 2026,” Mr Gidley-Baird said. “Despite these record volumes, a strong global market is supporting record export prices and, in turn, historically-high cattle prices, particularly for finished cattle.”
RaboResearch projects this strong export market will continue through 2026 and into 2027, driven largely by import demand from the US market.
However, the report says inflationary pressures of the Iran war and the impact on consumer sentiment will need to be watched.
“The strong export market is expected to provide support for the Australian domestic cattle market, and we believe should hold prices around levels seen through Q1,” Mr Gidley-Baird said.
A deterioration of seasonal conditions would be the largest risk in the system, he said.
“With high cattle inventory, dry seasonal conditions – like those conditions being experienced in parts of New South Wales – could force producers to sell stock rapidly into a market flush with cattle,” Mr Gidley-Baird said. Slaughter volumes are already at historically high levels, adding an additional 10 per cent to these levels as we have seen in previous drought conditions would test the capacity of the system.”
