Australian beef prices to rise

Australian beef and cattle prises are set to soar for the next two years as the national herd hits a 20-year low.

The latest quarterly update from Meat & Livestock Australia says the nation`s "severely depleted" cattle supply has plummeted by about 3.0 million heads to 26.2 million in the past three years.

The herd numbers in western Queensland and New South Wales shrinking by up to 40 per cent, the Australian Associated Press reported on Wednesday.

Slaughter rates in the eastern states are also expected to drop from the record highs of two years ago to a predicted 120,000 in 2017, the same level as 2006 when the industry was trying to rebuild herd numbers.

The reduction in slaughter rates will help ensure more calves are born next year, with increased beef production to follow in 2018.

Low cattle numbers hindered live exports this year, with a decline of 1.05 million propped up only by a localised increase to the herd in Western Australia, according to a news agency report.