According to Australian Bureau of Agricultural and Resource Economics' report 'Australian Beef : Financial Performance of Beef Farms 2006-07 to 2007-08 released in June, in the 2006-07 financial year specialist beef producers lost an average of $60,000 per farm.

This was the largest average farm business loss recorded by the southern beef industry since ABARE began surveying the broadacre industry in 1977-78.

In 2006-07 cattle numbers fell by 4pc per farm but it is not all gloom and doom with numbers forecast to rise by 2.1pc in southern Australia in 2007-08.

Strong capital investment on land acquisitions over the past eight years are likely to underpin strong future performance.

The average farm cash income for the 32,153 beef producers in southern Australia was expected to remain around $45,000 in 2007-08.

But it is the very large southern Australian producers with more than 800 breeders who would post the best profits of $97,000 compared to losses of $53,000 in 2006-07.

Confident of good returns

UPPER South East stud and commercial breeder Tim Cartledge (pictured) says beef producers need a significant price lift similar to that seen in the grains industry and a return to reasonable seasons to remain viable.

"Grain prices have increased by 50 per cent and we believe beef needs to do the same or there won't be much of a beef industry," he said.

"We are in challenging times as far as the factors affecting production with the price of fuel, grain and fertiliser and the availability of water."

With wife Lise, and son Henry and his wife Prue, the Cartledges calve down 450 breeding females at their Menalpyn property aiming to turn off steers and surplus to replacement heifers over the hooks for the EU market at 17 to 18 months of age.

Menalpyn is also home to the successful Lancaster stud herd selling Simmental and composite bulls.

In the last two years, they have received only half of their 450 millimetres average rainfall and this year is again lacking promise with only 100mm to the beginning of July.