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Investor Presentaiton

Cattle · The herd rebuild is expected to continue in 2018-19. However, seasonal conditions in the north and high beef prices relative to long term averages will incentivise producers to maintain a high rate of turn off, constraining growth. Cattle prices are set to fall by 4% in 2018-19 to 439cents per kg, as competition in key beef export markets intensifies from competitors US and Brazil. Live exports of Australian feeder and slaughter cattle are forecast to increase by 4% to 910,000 heads, almost all the forecast growth is expected to go to Indonesia. Australian dairy herd numbers are expected to increase in 2018-19 by 1%, reflecting an expected rise in average farm- gate milk price of 48 cents per litre. 30 29 28 27 26 25 24 Source: ABARES Agricultural Commodities Outlook, March 2018 Australian Cattle herd Million heads +2% 2014 2015 2016 2017 2018f 2019f Weighted average saleyard price Ac/kg dressed weight 650 600 550- 500 -4%) 450 400 350 300 250 2014 2015 2016 2017 2018f 2019f Elders 37
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