The beef industry's big service provider Meat & Livestock Australia has launched a new independent price indicator to assist the live export industry to make more informed decisions and drive profitability in Northern Australia.
The Live Export Price Indicator was developed in consultation with industry following the need to provide greater coverage of pricing trends to producers and participants throughout the supply chain in the northern cattle industry.
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MLA Managing Director, Jason Strong, said the live export industry played a pivotal role in the livestock sector in Northern Australia.
"The Northern Territory currently accounts for about 10 per cent of the total national cattle herd, so it's important that the live export industry has a measurable pricing indicator made available by an independent source rather than rely on anecdotal information," Mr Strong said.
"The new LEPI will provide relevant, timely and independent information to support the live export industry to make more informed business decisions through connected data.
"Critical to the process was the consultation with livestock exporters who contribute their data to the Northern Territory Livestock Exporters Association and provided regular updates on the indicator's performance, its accessibility and accuracy."
The LEPI is the average sale price of male feeder cattle purchased by exporters for shipment via Darwin to Indonesia, released every second Tuesday for the previous fortnight. All data shown in the LEPI has been provided by livestock export companies active in the feeder cattle trade to Indonesia.
The LEPI is generated on the sale price of male feeder cattle, both castrated steers and entire bulls, shipped for export from Darwin to Indonesia, weighing 280-380kg liveweight. The indicator price will be reported on a cents-per-kilogram lwt basis and in Australian dollars, in line with established terms of the trade.
The LEPI's performance will be reviewed based on feedback from producers, users, exporters, and industry.
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