W.LPG.2101 - Live Export Price Indicator (LEPI)
Did you know MLA launched a new independent price indicator to assist the live export industry to make more informed decisions and drive profitability in Northern Australia?
| Project start date: | 15 August 2021 |
| Project end date: | 01 May 2023 |
| Publication date: | 11 March 2024 |
| Project status: | Completed |
| Livestock species: | Grass-fed Cattle |
| Relevant regions: | National |
Summary
There is insufficient price information to support accurate live export cattle price reporting. Current indicators lack transparency and relevance and are not robust or reliable. MLA currently relies on a single industry source to quote live export prices ex-Darwin and ex-Townsville. In 2020 there was a period through which MLA relied upon data that was not updated for months. This meant the prices that MLA was quoting were unreliable.
Objectives
A new indicator will promote price transparency within the live export industry. It will provide industry stakeholders with the relevant information to benchmark prices and identify key domestic and global trends over time. Given the importance of the live export market to the cattle industry, the associated importance of timely and accurate price and market information is significant. This a great opportunity for MLA to offer value to the northern cattle industry.
Key findings
The impact of the LEPI can be monitored and evaluated through levels of satisfaction from industry stakeholders and number of weekly click-throughs captured via the online dashboard.
The LEPI was discontinued upon industry request due to unsatisfactory reporting.
Benefits to industry
There was a push from industry, producers and exporters alike, to develop a more robust and reliable live export indicator. A key benefit for exporters is the ability to demonstrate and validate the cost of Australian cattle, especially through periods of low supply and associated high price. The indicator aimed to provide the most reliable, benchmark reference point for industry to track historic trends and map market highs and lows.
MLA action
Seek industry consultation prior to further investment.
Future research
Not at this stage. Seek industry consultation prior to further investment.
More information
| Project manager: | Peter Dundon |
| Contact email: | reports@mla.com.au |
