The Australian government has pledged US$79 million to the Northern Australia Beef Roads Fund to upgrade roads used to transport cattle from farm gates to markets.
The government’s cash injection has pleased many beef producers in northern Australia which supplies an estimated 90% of the country's cattle exports worth around $2.4 billion.
Transportation costs can be up to 35% of a livestock's price because they sometimes must be transported several hundred kilometres to market, according to media repo
The Australian government has pledged US$79 million to the Northern Australia Beef Roads Fund to upgrade roads used to transport cattle from farm gates to markets.
The government’s cash injection has pleased many beef producers in northern Australia which supplies an estimated 90% of the country's cattle exports worth around $2.4 billion.
Transportation costs can be up to 35% of a livestock's price because they sometimes must be transported several hundred kilometres to market, according to media reports. Roads are often in poor condition, even impassable during times of flooding.
"In northern Australia, beef is probably the biggest industry, apart from tourism and resources, and it's very important that beef stays strong," said Prime Minister Tony Abbott.
But critics said the money falls far short of what it required. Australia’s Northern Territory government estimates that it will need almost $1.35 billion to improve its roads to what it considers a satisfactory state.
Northern Territory Cattlemen's Association chief executive Tracey Hayes wanted more economic and political courage, a report by the Australian Financial Review said.
"The NTCA has had roads on the agenda at every meeting [with government] for years...some of our members have not been able to get their product to market for a period of nine months. In this day and age that is extraordinary," she said.
The beef export sector is worth about $632 million to the Northern Territory, the AFR noted.
The government’s cash injection has pleased many beef producers in northern Australia which supplies an estimated 90% of the country's cattle exports worth around $2.4 billion.
Transportation costs can be up to 35% of a livestock's price because they sometimes must be transported several hundred kilometres to market, according to media reports. Roads are often in poor condition, even impassable during times of flooding.
"In northern Australia, beef is probably the biggest industry, apart from tourism and resources, and it's very important that beef stays strong," said Prime Minister Tony Abbott.
But critics said the money falls far short of what it required. Australia’s Northern Territory government estimates that it will need almost $1.35 billion to improve its roads to what it considers a satisfactory state.
Northern Territory Cattlemen's Association chief executive Tracey Hayes wanted more economic and political courage, a report by the Australian Financial Review said.
"The NTCA has had roads on the agenda at every meeting [with government] for years...some of our members have not been able to get their product to market for a period of nine months. In this day and age that is extraordinary," she said.
The beef export sector is worth about $632 million to the Northern Territory, the AFR noted.
