According to Meat & Livestock Australia, 58,364 head were exported in 2008 compared with 46, 265 the previous year as many emerging countries look to establish dairy herds and become more self-sufficient for dairy products.

A number of participants within the industry are concerned about the impact on future milk sales and the loss of progeny test information on young bulls, but for many the live export trade has been a lifeline to stay in the industry.

Orders continue to flow from Russia, the Middle East, Mexico and Asian countries for Australian dairy cattle, with unjoined heifers making as much as $1000 a head, and mated heifers $1400-$1500.

The epicentre of the trade is Victoria, with nearly 90 per cent of the national total including 45,363 head shipped out of Portland and the remainder air-freighted from Melbourne.

Elders International manager of live exports Andrew Ingle said demand had remained steady for the past three years although China had emerged more of a market force as numbers eased off to Russia.

"We have seen in the past few years producers holding on to heifers especially for the export trade and it has been a good cashflow option at times for vendors with surplus stock for sale," he said.

Australia has become a preferred supplier with its high- quality livestock and health status, but Mr Ingle said the market was coming under increased pressure from Canada and the United States since the mad cow ban had been lifted, and Uruguay had emerged as a potential competitor.

"The market for breeding dairy cattle around the world in the medium-term looks fairly good, with emerging countries increasing their milk production, and while one market may slow down, others will come on to take their place," Mr Ingle said.

Elders has just filled an order for China and currently has an order for joined 16-21 month old Holstein heifers for delivery to Pakistan in October.