Cattle prices in Australia fall due to widespread drought

This more than halved the value of 29 million HEAD of cattle and 79 million sheep in Australia. The roughly 500,000 head of cattle and 2.5 million sheep and lambs slaughtered each month are worth about A$750 million less than before prices began to fall, REUTERS calculations based on MLA data show.

November rains eased fears of widespread and immediate drought, lifting prices somewhat. But with forecasters warning that the El Niño weather pattern will lead to a hotter-than-usual summer, experts don't expect the herd to recover quickly.

Many farmers are selling their animals for a fraction of what they paid for them, and some have been unable to find buyers and are simply shooting sheep they can't sell, more than 20 livestock farmers and agents said in interviews.

Rising interest rates and soaring costs of essential commodities such as fuel, machinery and fertilizers have also increased financial pressure on farmers.

While farmers are suffering, falling livestock prices have brought some relief to Australian households hit by high inflation. Leading supermarket chain Woolworths recently cut lamb prices by 20%, according to an October 25 update from its CEO.