After three years of plentiful rain and rising livestock numbers, dry weather has withered pastures across Australia. The extreme change in conditions has helped trigger the fastest plunge in cattle and sheep prices in decades, threatening livelihoods in Australia's A$75 billion ($50 billion) red meat and livestock industry. While farmers suffer, falling livestock prices have brought some relief to Australian households hurting from high inflation. Falling U.S. beef production means demand for Australian beef should rise, helping support livestock prices, said Angus Gidley-Baird, an analyst at Rabobank in Sydney. Agricultural consultants Episode 3 estimate that Australian beef processors are reaping their best profits in at least two decades thanks to low local cattle prices and high sale prices in export markets.

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Persons: Angus Hobson, Peter Hobson, Angus, Hobson, Stuart Austin, Wilmot, Angus Gidley, Baird, Teys, Mat Larkings, gaunt, haven't, they'll, Sonali Paul Organizations: Livestock, New, REUTERS, Beef, Livestock Australia, Woolworths, Data Monitor, Rabobank, Meat packers, Teys Australia, Farmers, Thomson Locations: Delegate, New South Wales, Australia, Angus Hobson's, Australia's, United States, El Nino, Japan, China, Sydney, Walcha