Meat and Livestock Australia is reporting that the latest figures from the Australian Bureau of Statistics show Australia’s cattle herd for the year ending 30 June 2008 declined 0.8pc to 27.8 million head.

The sheep flock dropped 7.6pc to 79.2 million head, the lowest national flock since 1920.

MLA says the sharp decline in the Australian sheep flock for 2007-08 was largely expected, given the unrelenting impact of drought conditions across key sheep producing regions of NSW, Victoria and SA.

The shift away from sheep to cropping in WA contributed to the flock in the west plunging 13pc year-on-year to 18.4 million head – down 52pc from the peak of 38.4 million head in 1990, and the lowest level since 1962.

Surprisingly, Victoria was the only state to record an increase in flock numbers for the year, up 2pc to 17.5 million head, while NSW (26.8 million head) and SA (10.2 million head) recorded falls of 6pc and 12pc, respectively.

Despite the decline in total flock numbers over the past year, breeding ewe numbers rose 0.4pc on the previous year to 46.6 million head.

The maintenance of breeding ewe numbers indicates a willingness to rebuild sheep numbers, if and when seasonal conditions permit.

In contrast to the sheep flock, the national cattle herd remained relatively stable throughout 2007-08, as the 4pc growth in Queensland (12.2 million head) almost offset falls across the remaining states.

In NSW, herd numbers declined 1.9pc to 5.8 million head, as falls across drought affected southern regions offset growth in the north.

In Victoria, herd numbers dropped 8pc year-on-year, to 3.9 million head, the lowest level in 15 years.