Nt Cattle Exporters Gain Confidence From China

Australia exports approximately over 1million cattle and 2million sheep live every year, although the number fluctuates due to environmental conditions, international disputes and currency change this is the main statistic. Not too recently World Animal Protection and Animals Australia released shocking videos revealing their undercover investigations overseas and the horrific abuse these animals suffer. Australian live export laws are in place to prevent the abuse and to protect these animals, yet once in other countries borders, these laws dissipate and play no part in the treatment of the livestock they spent so much money on raising and keeping healthy. A lot of these animals do not even survive the shipment only to then be shoved into boiling car trunks for

The beef industry is an important asset to United States agriculture as a whole. Over a million agricultural entities benefited from the sales of cattle and calves in the year 2000. Gross totals from sales of cattle and calves in 2000 totaled $40.76 billion accounting of 21% of all agricultural receipts making the beef sector the largest single agricultural enterprise. Direct and indirect employment in or related to the production and processing of beef supports over 1.4 million full-time-equivalent jobs in the US as well. Cattle are produced in all 50 states and their economic impact contributes to nearly every county in the nation and they are a significant economic driver (Lawerance and Otto, 2000).

Some Major benefits of international trade include the reduction of poverty, expansion of business opportunities for local companies and reduces costs for consumer.

Benefits the economy, supports thousands of Australian jobs and is helping to provide protein to some of the world’s poorest people across Asia and the Middle East. Australia’s beef cattle exports are wroth $1.35 billion and the sector employs more than 10,000 people, including many Indigenous Australians.

The Cattle on Feed report is a survey that provides an estimate of the number of cattle being fed for the slaughter market that are expected to grade out at select or better, according to the National Agricultural Statistics Service (NASS) of the United States Department of Agriculture (USDA). The survey, conducted in the 16 largest cattle-feeding states, represents the numbers being produced by roughly 2,000 cattle feeders with more than 1,000 heads of cattle. The Cattle on Feed survey is conducted monthly and the report is issued on the third Friday of each month.

First of all, international trade creates and supports jobs. Australia’s free trade agreements with, China, Japan and South Korea created around 7,900 jobs in 2016 and it’s estimated that by 2020 it will jump to 14,500. Additionally, 1 in 5 jobs in the Australian economy involves trade-related activities.

Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.

Australia being a major exporter of high quality beef is viewed by many as an ideal investment for investors to take advantage of the opportunity of the rise in future demand for beef and the limited grazing lands available for beef production. There has been demand in Australia’s agricultural farming lands by investors who view farming lands as a long-term investment, with the view of a high returns in the Australia’s agricultural sector as the growth in middle class of Asia materializes pushing for a greater demand of beef. The current dilemma which the Australian beef sector faces is the decline in herd numbers to 40-year low, the increase in the cattle slaughter rate and the growth in demand for beef exports. External competition in the beef market from international players aim at establishing a hold on foreign exports and aim for a greater share in the beef export

Trade policies are developed by foreign and domestic governments in an effort to influence net imports or net exports (Cengage, 2009). Two common policies are the use of tariffs and import quotas. As XYZ expands into Asia, Mexico and Canada it will want to factor the costs of tariffs and the possible effects of the limitations of import quotas. What is interesting is that the basic premises of supply and demand, imports and exports, equilibriums and trade balances are all meant to lead to an efficient market place (Cengage, 2009). Tariffs, wage restrictions, quotas and other such policies can create inefficient markets. So XYZ will have to take the basic study of economics and then apply the effects of various trade policies and restrictions. Another factor of government that influences the

Cow-calf producers and cattle feeders were interested in the factors which may impact feeder cattle and calf prices. Many factors, such as grain and hay prices, weather, prices of competing meats, and the general economic situation of the consumer affect cattle prices (Lambert et al., 1989), producers have very little control on them. But some factors, including number of cattle sold, sex, muscle thickness, frame score, age, body weight, etc. are controllable. Understanding these factors may improve their financial management.

Before investing and operating Angus beef cattle barns, you need to gain certain knowledge and skills, and understand all the responsibilities such a venture involves for you. For example of the latter, a herd of cattle requires ongoing daily care to grow, thrive and reproduce in the proper manner. If you think that you can just sit back and relax to make your venture successful, do not start raising cattle. We provide you a list of factors below to consider before starting you own Angus beef cattle venture.

The country can maximize their wealth by putting the resources in the most competitive industries. Government created comparative advantage rather than free trade because now easier moves the production processes and the machines into countries that can produce more goods (Yeager & Tuereck, 1984). However, many countries now move to new trade theory suggests the ability firms to limit the number of competitors associated with economic scale (reduction of costs with a large scale of output) (Krugman, 1992). The comparative advantage occurs when two-way trade in identical products, it will useful where economic scale is important, but it will create problem with this model. As a result, government must intervene in international trade for protection to domestic firms (Krugman, 1990)

Since 2012, Australia has maintained a mostly negative trade balance, perhaps amid uncertainty of its currency against the US dollar, but more likely is its economic growth is causing it to import more and more petroleum products which it’s exports of its own natural resources is not able to match.

The theory of comparative advantage explains the benefit of free trade. According to this theory by David Ricardo in the early 19th century, “Both countries will be better off if each specializes in the industry where it has a comparative advantage, and if the two trade with one another.” (Citation) International trade opens up markets to foreign supplier, and domestic companies need to improve their efficiency, boost productivity, and lower cost to increase competitiveness instead of enjoying monopolies or oligopolies that enabled them to keep prices well above marginal costs. On the other hand, international trade also offers domestic companies bigger demands and broader markets; therefore more jobs relevant to export have been created. Furthermore, jobs in the US supported by goods exports pay 13-18 percent more than the US national average (ustr.gov).

Comparative advantage is a principle developed by David Ricardo in the early 19th century to explain the benefits of mutual trade (Carbaugh, 2008). Many underlying assumptions of comparative advantage depend on states of economic equilibrium and an absence of economy of scale. In reality, economies are dynamic and subject to innovation and interference; which has led to revised assumptions of return and competition (Krugman, 1987). These factors have created questions of free trade and governmental participation in an economy by the development of strategic trade policies. These new concepts do not replace the theory of comparative advantage; however, they further explain how trade can benefit a country's economy (Krugman, 1987).